글로벌 기업가정신 조사 Global Entrepreneurship Monitor(GEM)

1. 2009 창업대전 글로벌 기업가정신 조사Global Entrepreneurship Monitor(GEM) • GEM 소개 • GEM 역사 • GEM 연구 Min-Seok Cha, Ph.D. Senior Researcher, KAIST CIE Founder, InnovO Initiative Researcher, GEM Korea GEM Korea and Global Entrepreneurship Research Association

2. “Entrepreneurship is important for economic development” Need for better understanding of the links between entrepreneurship & growth, and the role of policy Lack of detailed internationally comparable data 1. GEM Intro : Background

3. GEM focuses on three main objectives: To measure ‘differences’ in the level of entrepreneurial activity between countries To uncover “factors determining” national levels of entrepreneurial activity To identify “policies that may enhance” national levels of entrepreneurial activity 1. GEM Intro: Purpose © 2009, by the Global Entrepreneurship Research Association

4. Largest study on entrepreneurship in the world GEM focuses on individuals in the entrepreneurial process Monitoring entrepreneurship by conducting Adult Population Surveys Minimum 2,000 per country Allows exploring several types and phases of the entrepreneurial process Growing dataset Over 1,000,000 data points between 2001-2008 Numerous indicators can be extracted 1. What’s GEM: Unique Features

5. GEM reports on special topics Finance Growth Expectation Entrepreneurship Female Entrepreneurship Entrepreneurship Education and Training Research method also applicable to regions & cities 1. What’s GEM: Unique Features

6. GEM was initiated in 1997 Pioneers: Michael Hay (London) and Bill Bygrave (Babson) Founding institutions: London Business School & Babson College First GEM report in 1999 Principal Investigator: Paul Reynolds 10 countries in 1999, 31 countries in 2003 GERA established in 2004: consortium of participating national teams GEM continues to expand, 65 countries involved since 1998 Country micro-sites on www.gemconsortium.org New global sponsor in 2008 Universidad del Desarollo (Santiago, Chile) New members and Sponsors in 2009 2. GEM History © 2009, by Niels Bosma and the Global Entrepreneurship Research Association

8. GEM Countries 1999 © 2009, by Niels Bosma and the Global Entrepreneurship Research Association

9. GEM Countries 1999-2008 © 2009, by Niels Bosma and the Global Entrepreneurship Research Association • 43 countries in 2008 • More than 50 countries in 2009

10. Factor-driven economies Angola, Bolivia, Bosnia and Herzegovina*, Colombia*, Ecuador*, Egypt, India, Iran* Efficiency-driven economies Argentina, Brazil, Chile, Croatia**, Dominican Republic, Hungary**, Jamaica, Latvia, Macedonia, Mexico, Peru, Romania, Russia, Serbia, South Africa, Turkey, Uruguay Innovation-driven economies Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Israel, Italy, Japan, Korea Republic, Netherlands, Norway, Slovenia, Spain, United Kingdom, United States * Transition country: from factor-driven to efficiency-driven ** Transition country: from efficiency-driven to innovation-driven GEM 2008 Countries

11. 올해로 11년째, 10th GEM annual report

12. Revised GEM Conceptual Model Integrate with model from Global Competitiveness Report that identifies three phases of economic development. Consider three dynamic interactive components of entrepreneurship: attitudes, activity and aspirations Sketch the beginnings of a new Global Entrepreneurship Index Work in progress by GEM researchers Zoltan Acs & Laszlo Szerb, consistent with revised GEM model 3. GEM Research: Model and Report

13. Acs and Szerb (2008) use 32 variables (19 from GEM) To create 14 indicators forming Three sub indices that capture Entrepreneurial activity Entrepreneurial aspiration Entrepreneurial attitudes One ‘super’ index called GEI For all 64 countries that have participated in the GEM project across the years 2003-2008 The index takes a value from 0 to 1 Global Entrepreneurship Index (GEI)

14. The GEI and per capita GDP © 2009, by Niels Bosma and the Global Entrepreneurship Research Association

15. Correlations also positive with Doing Business Index (World Bank) Economic Freedom Index (World Heritage Foundation) Global Competitiveness Index (World Economic Forum) Relationships mostly non-linear Support for revised GEM model identifying three major phases of economic development Results may lead to new insights of how policy can affect productive entrepreneurship through the major phases of economic development Characteristics and Implications of the GEI © 2009, by Niels Bosma and the Global Entrepreneurship Research Association

16. Relationships with GDP and GCI © 2009, Global Entrepreneurship Research Association

17. Building from the Previous GEM Conceptual Model • Basic requirements • Institutions • Infrastructure • Macroeconomic stability • Health and primary education • General National Framework Conditions • Openness (External Trade) • Government (Extent, Role) • Financial Markets (Efficiency) • Technology, R&D (Level, Intensity) • Infrastructure (Physical) • Management (Skills) • Labor Markets (Flexible) • Institutions (Unbiased, Rule of Law) • Efficiency enhancers • Higher education & training • Goods market efficiency • Labor market efficiency • Financial market sophistication • Technological readiness • Market size National Economic Growth (Jobs and Technical Innovation) Social, Cultural, Political Context • Innovation and sophistication factors • Business sophistication • Innovation • Entrepreneurial Framework Conditions • Entrepreneurial finance • Gov. entrepreneurship programs • Entrepreneurship education • R&D transfer • Commercial, legal infrastructure for entrepreneurship • Entry regulation

18. The Revised GEM Conceptual Model • Basic requirements • Institutions • Infrastructure • Macroeconomic stability • Health and primary education Established Firms (Primary Economy) • Efficiency enhancers • Higher education & training • Goods market efficiency • Labor market efficiency • Financial market sophistication • Technological readiness • Market size National Economic Growth (Jobs and Technical Innovation) Social, Cultural, Political Context New plants, firm growth Entrepreneurship Attitudes: Perceived opportunities Perceived capacity • Innovation and entrepreneurship • Entrepreneurial finance • Gov. entrepreneurship programs • Entrepreneurship education • R&D transfer • Commercial, legal infrastructure for entrepreneurship • Entry regulation Activity: Early-stage Persistence Exits Aspirations: Growth Innovation Social value creation GEM Adult Population Surveys (APS) GEM National Expert Surveys (NES)

19. Institutions are critical determinants of economic behavior and they can impose direct and indirect effects on the supply and demand of entrepreneurs Nexus among entrepreneurship, economic development, and institutions requires critical inquiry Also to understand why the relative contributions of entrepreneurship can vary significantly across countries and regions Institutions, Entrepreneurship, and Economic Development

20. Entrepreneurial Activity GEM identifies different phases in the entrepreneurial process Early-stage entrepreneurial activity (TEA) is the phase centred around the birth of the firm; it includes the pre-startup phase. Early-stage Entrepreneurial Activity (TEA) Potential entrepreneur: knowledge and skills Nascent entrepreneur: Involved in setting up a business Owner-manager of a new business (up to 3.5 years old) Owner-manager of an established business (more than 3.5 years old) Conception Firm birth Persistence

21. e.g. Early-stage Entrepreneurial Activity and the U-shape Relationship with Economic Development Decrease in necessity entrepreneurship Increase in opportunity entrepreneurship

22. Early-Stage Entrepreneurial Activity 2001-2008 © 2009, by Niels Bosma and the Global Entrepreneurship Research Association Despite drop in perceptions no drop in early-stage entrepreneurial activity

23. GEM: entrepreneurial attitudes, activity, aspirations Individual level: adult population survey (APS) Individual approach enables to explore types and phases of entrepreneurship Expert surveys (NES) provide useful additional information on the conditions of entrepreneurship Simple and transparent ‘indices’ (prevalence rates) Research methodology applicable to regions & cities General global entrepreneurship index can be derived by combining several GEM indices with indices on institutional quality Concluding

24. “Entrepreneurs Defy Negative Sentiment as Global Crisis Grows” Entrepreneurs may change economic landscape in times of recession Exciting times for entrepreneurship research… …how does the recession impact the GEM indices and the newly developed GEI? For sure 2009 will be an interesting year for GEM! GEM Concluding

25. Entrepreneurship Education and Training (2008) Social Entrepreneurship (2009) Entrepreneurial Network Innovation Confidence Global Entrepreneurship Index (GEI) Comparison with other Index Special Research Topics

26. Three components Attitudes & Perceptions Activity Different phases Characteristics (demographics, sector structure, motivations, …) Aspirations Growth expectation Innovation Technology International orientation Economic crisis has already influenced attitudes and may especially impact characteristics and aspirations Appendix: GEM Entrepreneurship ‘Indices’

27. Global Entrepreneurship Index (GEI) Acs and Szerb (2008) use 32 variables (19 from GEM) To create 14 indicators forming Three sub indices that capture entrepreneurial attitudes, activity and aspirations One ‘super’ index called GEI For all 64 countries that have participated in the GEM project across the years 2003-2008 The index takes a value from 0 to 1 More relevant aspects, more complexity, less transparency © 2009, by Niels Bosma and the Global Entrepreneurship Research Association

28. Perceived opportunities to start a business If respondent perceives good opportunities: Would fear of failure prevent to start business? Perceived capabilities to start a business Intentions: expects to start business in next 3 years National attitudes perceived by respondent Entrepreneurship considered as desirable career choice Lots of media attention for entrepreneurship Appendix: Entrepreneurial Attitudes © 2009, by Niels Bosma and the Global Entrepreneurship Research Association

29. ‘High impact’ types of entrepreneurship Growth expectation: expect 20+ jobs five years from now Innovation orientation: combination of new product and new market New technology: active in technology sector (OECD classification) These types are quite rare Need larger sample size to be equally precise in estimates The GEM 2008 report required minimum 6,000 respondents between 18-64 years, in data merged over 2002-2008. Entrepreneurial Aspirations © 2009, by Niels Bosma and the Global Entrepreneurship Research Association

30. REFERENCE • Acs, Z.J. and L. Szerb (2008). Gearing up to Measure Entrepreneurship in a Global Economy. Mimeo, Faculty of Business and Economics, University of Pecs, Hungary. •  Bygrave, W.D., with M. Quill (2007). Global Entrepreneurship Monitor Financing Report. London: London Business School and Babson Park, MA: Babson College. •  Reynolds, P.D., N.S. Bosma, E. Autio, S. Hunt, N. De Bono, I. Servais, P. Lopez-Garcia and N. Chin (2005). "Global Entrepreneurship Monitor: Data Collection Design and Implementation, 1998-2003," Small Business Economics, 24(3), 205-231.   • Niels Bosma. Zoltan Acts, Erkko Autio, Alicia Coduras, Jonathan Levie (2008), Global   Entrepreneurship Monitor, 2008 Executive Report, GERA. • BCERC(2009), GEM related Presentations, Babson College, MA: Wellesley. • http://www.gemconsortium.org • http://www3.babson.edu/ESHIP/research-publications/gem.cfm • http://www.gemskorea.org