entrepreneurial ecosystem nl stam
Post on 13-Sep-2014
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There has been an amazing growth of entrepreneurship in the Netherlands in the period 1987-2012. One the one hand this is a miracle: there is no European country in which the Total Entrepreneurial Activity rate has grown as much as in the Netherlands over the period 2003-2012. On the other hand there is a paradox: this growth is increasingly a matter of growing numbers of solo self-employed, with only low/mediocre rates of growth-oriented entrepreneurship.TRANSCRIPT
Entrepreneurial_Ecosystem.NLMiracle and Paradox
“ENTREPRENEURIAL ECOSYSTEMS AND GROWTH-ORIENTED ENTREPRENEURSHIP”International Workshop jointly organised by the OECD LEED Programme and
The Netherlands’ Ministry of Economic Affairs
Prof Dr Erik StamUtrecht University School of Economics &
Utrecht Center for Entrepreneurship
Entrepreneurial_Ecosystem.NL
Oh no, not the next Silicon Somewhere…
Entrepreneurial_Ecosystem
Reflects two shifts:Societal: from Managed Economy to
Entrepreneurial Economy (Thurik, Stam & Audretsch 2013)
Scientific: from Equilibrium Economics to Complexity Economics (Beinhocker 2007)
NL: Entrepreneurship Miracle or Paradox?
• Amazing growth of entrepreneurship in the Netherlands, 1987-2012
• Miracle: no country in which the TEA rate has grown as much as in the Netherlands over the period 2003-2012 (and precourse of rising new firm formation and self-employment)
• Paradox: increasingly a matter of growing number of solo self-employed, and low/mediocre rates of growth-oriented entrepreneurship
Entrepreneurship NL Facts - I
Entrepreneurship Facts - II
TEA Rate 2003-2012 (GEM)
Paraphrasing Einstein
• Not all entrepreneurship that counts can be counted, and not all entrepreneurship that can be counted counts.
• Entrepreneurship: explore and exploit opportunities for new value creation
Entrepreneurship Facts - III
Entrepreneurship Facts - IV
Entrepreneurship Facts - V
(Eco)systemic Causes & Consequences
• Positive feedback: virtuous circle (for self-employment!)
Changing preferences
Changing formal
institutions
Lowerentry
barriers
Higherentryrates
+ Context: high labour protection, concentrated financial sector,
+ Shocks: 1997-2001 dot.com boom&bust2008+ financial crisis
(Eco)systemic Causes & Consequences
• Negative/no feedback– No build up of system for high-growth start-ups (vicious
circle high-growth start-up scandals early 2000s: Baan, World Online)
a) Mobility of skilled labour: employment protection legislation, non compete clauses
b) Capital market: VC, trade-sales, IPOc) Lack of venturesome demand: innovative procurementd) a)+b): Lack of serial entrepreneurs/informal investors
– No champion of intrapreneurship, like Scandinavian countries (in spite of high levels of trust, knowledge work, and decentralized decision making)
Is Entrepreneurial_Ecosystem.NL successful?
Is Entrepreneurial_Ecosystem.NL successful?
+ Relatively low unemployment rates- >175.000 self-employed below poverty line…
(CBS)
Is Entrepreneurial_Ecosystem.NL successful?
+ Relatively low unemployment rates- >175.000 self-employed below poverty line…
(CBS)- No increase in innovativeness SME sector
Entrepreneurial_Ecosystem.NL
• One entrepreneurial ecosystem, or many (self-empl, high-growth start-ups, intrapreneurship)?
• One national ecosystem, or many (reg, sect, corp)?– Regional ecosystems: e.g. Amsterdam, Eindhoven area,
Utrecht, Twente, …– ‘Sectoral’ ecosystems: e.g. gaming, biotech, (construction?)– Corporate ecosystems: intrapreneurship
• Systemic causes– Institutions -> resources (capital, labour) for value creation
• Success? Successful? +/-/-
What’s next?
• Transition from an EE focused on self-employment,
• To EE that facilitates high-impact new value creation: – High growth start-ups– Intrapreneurship – Coalitions of self-employed and other
organizations
How?
• Education: stimulate ambition and entrepreneurship (preferences, skills)
• Facilitate / incentivize capital & labour towards high-impact opportunities
Entrepreneurial_Ecosystem.NLMiracle and Paradox
“ENTREPRENEURIAL ECOSYSTEMS AND GROWTH-ORIENTED ENTREPRENEURSHIP”International Workshop jointly organised by the OECD LEED Programme and
The Netherlands’ Ministry of Economic Affairs
Prof Dr Erik StamUtrecht University School of Economics &
Utrecht Center for Entrepreneurship