We know that developing countries need entrepreneurship — especially formal entrepreneurship — in order to drive growth, expand access to opportunity, and address youth unemployment. Yet only 4,000 to 5,000 new firms register each year in places like Belarus, Guatemala, and Tunisia. Can business environment reforms, as prescribed by Hernando de Soto and spotlighted by the World Bank’s Doing Business project, make the difference?
Searching the World Bank’s Entrepreneurship Database for business registry data, Leora Klapper and Douglas Randall analyze what business environment reforms mean in practice. The upshot: big reforms can boost private sector activity but token reforms do not. Their important research is summarized in the “Impact of Business Environment Reforms on New Firm Creation,” the latest release from CIPE’s Economic Reform Feature Service.
This article is excerpted from the forthcoming thought leader report on “Creating the Environment for Entrepreneurial Success.”
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Joining us will be CIPE partners and entrepreneurs from around the world, including:
Sarfaz Rahman is the CEO of Dawood Foundation, part of Dawood Group, one of the top family-owned businesses in Pakistan. He is a Chartered Accountant who has worked at Unilever, Glaxo Smith Kline, Pepsico, and Engro Foods.
EmprendeAhora is a program run by CIPE partner Instituto Invertir that teaches entrepreneurship and leadership skills to students in Peru.
Camelia Bulat is a CIPE consultant and the director of the Regional Center for Organization Management in Romania.
Rami Shamma is Project Manager for the Development for People and Nature Association in Lebanon, which works on youth entrepreneurship issues.
The first ever Amazonica 10 kilometer marathon was organized by Grupo A&E, a business founded and operated by Jorge “Coco” D’Azevedo, alum of the first EmprendeAhora (formerly LiderAcción) program in 2008. With this first marathon, Grupo A&E added to an already large list of services that it offers, including: training in business management, leadership, motivation, and entrepreneurship; organizing academic, cultural, and entertainment events; and conducting surveys and market research.
A highlight of the World Economic Forum study is its categorization of eight possible strategies. For instance, a company can create, build, or ride a wave of economic transformation–and first movers do not necessarily come out on top. Facebook, as one example, did not create social networking but rather helped build this wave. The choice is complicated by uncertainty over the timing and development of the wave.
After just visiting Pakistan, I’ve been exploring my colleague Hammad’s blog on capacity building. I discovered he has a lot to say about entrepreneurship. He offers very common sense advice on topics such as leadership, business plans, and communications. What I like best though are the vignettes Hammad shares of all kinds of entrepreneurs–many of them Pakistani–with lessons for aspiring entrepreneurs. We learn for example about Abid Beli, owner of an online kitchen; Faisal Rahim, founder of Total Communications; Omair Ali, who made the switch from IT professional to entrepreneur; and Samina Fazil, who exports garments and also founded the Islamabad Women Chamber of Commerce and Industry. Thank you Hammad for sharing so many stories!
Updates from Afghanistan, Kyrgyzstan, Azerbaijan, Russia, and Paraguay…
Afghanistan – CIPE conducted a survey of students who have completed all three years of CIPE’s Tashabos high school entrepreneurship course. Of the 6,000 graduates, 1,362 have set up their own small business, 204 have revived a family business, and 350 have helped expand an existing family business. In total, the students have created 7,336 jobs.
Your Big Year 2012, launched in September, is a global competition created by Smaller Earth that seeks to engage people in entrepreneurship and global citizenship. YBY 2012 is a featured event of Global Entrepreneurship Week in November. Twelve finalists will be flown to Liverpool to compete in a series of challenges during the Global Entrepreneurship Congress in March, and the winner will receive a trip around the world to work on Smaller Earth projects, as well as the opportunity to meet community and world leaders.
The competition is open now and free to enter. For more information about Your Big Year 2012 and Smaller Earth or to enter visit www.yourbigyear.com
Hammad Siddiqui, Deputy Country Director of the CIPE Pakistan office, was recently interviewed by CIO Pakistan, a leading source of information for business technology leaders. In this video, he speaks about the latest initiative of CIPE and P@SHA (Pakistan Software Houses Association) aimed at encouraging students to explore various entrepreneurial opportunities in Pakistan’s IT sector.
In partnership with CIPE, P@SHA initiated a stakeholders’ dialogue on entrepreneurial opportunities for youth in the IT sector meant to determine the barriers young entrepreneurs face in this growing sector and recommend reforms. CIO Pakistan is the technology partner for in initiative.
The Branson Centre of Entrepreneurship released its first Young Upstarts Report on youth attitudes toward entrepreneurship, showing a high level of interest in starting a business combined with insights on the challenges facing entrepreneurs.
As far as attitudes go, the culture of creativity is widespread among South African youth. For many, creativity fuels their entrepreneurial dreams. Understanding and experience, however, are more limited. Most do not realize that entrepreneurship requires hard work and more than a good idea. Many would select the food and beverage sector for a new business–a highly competitive sector–presumably because it is familiar to them.