This month, CIPE hosted a Twitter Chat with advocates around the world to discuss how entrepreneurship contributes to economic, social and democratic development. Entrepreneurs naturally help to grow the economy as their ventures provide new services and often lead to increases in employment. In fact, the basic characteristics of entrepreneurial ventures indicate that they are more effective for economic development than other strategies. Startups are structured in a bottom-up fashion and tailored to the needs of local communities, which in turn leads to better engagement and sustainability. Furthermore, entrepreneurial ventures are not necessarily capital intensive meaning they can be launched quicker than larger initiatives that may require drawn out processes to secure necessary funding or even political support. Entrepreneurs are also more adept at navigating altering landscapes. Their smaller scale, limited structure, and independent thought processes allow for quick decision making while other strategies are slow to make necessary changes and adjustments.
Participants in the Twitter chat expressed that there are a number of barriers to entrepreneurship in the developing world. Access to micro-finance and general liquidity are commonly cited as the biggest barriers, but capital is only one part of an extensive ecosystem that allows entrepreneurship to thrive. These ecosystems not only require finance, but also have elements dealing with policy, culture, support mechanisms, and markets.
The policy environment plays an important part Continue reading ‘Creating Entrepreneurial Ecosystems’ »