December 17 2003, Cyprus

CyEC 2003 Conference

Professor Georgios I. DoukidisAthens University of Economics and BusinessTANEO (New Economy Development Fund)

CyEC 2003, 17-12-2003 Prof. G. I. Doukidis 2

Factors that encourage and support Entrepreneurial Activity recently

Technological Factors / Technological Progress• Cause new products, enterprises and sectors

Economic Factors / Increase of consumers’ demand• Increase of income, living standards, available financing

Demographic Factors / Development of New Service Companies

• Ageing of population, families with double incomes etc.

Psychological Factors and Culture• Alternative model to large enterprises, social norms that

support self-sufficiency (i.e USA)

Survival Factors• In less developed economies (i.e Uganda)

CyEC 2003, 17-12-2003 Prof. G. I. Doukidis 3

Total Entrepreneurial Activity (TEA) 2003 by Global Entrepreneurship Monitor (GEM)

GR:

Gre

ece

US:U

.S.A

.

ALL

Coun

tries

CyEC 2003, 17-12-2003 Prof. G. I. Doukidis 4

Necessity-Based Entrepreneurial Activity - 2003

GR:

Gre

ece

ALL

Coun

tries

CyEC 2003, 17-12-2003 Prof. G. I. Doukidis 5

High Potencial Enterpreneurship

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

Fin

land

Hong K

ong

Neth

erlands

Slo

venia

Sw

eden

South

Afr

ica

Sin

gapore

Germ

any

Denm

ark

Gre

ece

Spain

United K

ingdom

Sw

itzerland

Norw

ay

Canada

Irela

nd

Icela

nd

Chin

a

Austr

alia

United S

tate

s

Bra

zil

New

Zeala

nd

Chile

Agentina

Venezuela

Uganda

TEA (Non High Potential) TEA (High Potential)

High Potential Entrepreneurship

• new markets • new jobs • exports oriented

CyEC 2003, 17-12-2003 Prof. G. I. Doukidis 6

Entrepreneurs’ Expectations for Job Creation by Educational Attainment (2001)

- 2001

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Conditions that play an important role in promoting entrepreneurial activity in an economy

Government Policies• High priority in supporting new firms; quick acquisition of

permits & licenses; amount of taxes; predictable way of new regulations

Education and Training• Encourages creativity, self-sufficiency & personal initiative;

adequate attention to entrepreneurship and new-firm creation; special courses and programs; hybrid focus

Cultural and Social Norms• High value on self-sufficiency, autonomy, individualism and

personal initiative; do not rely heavily on government; expectation to change many jobs; prefer to work for new firms

Financial Support• Sufficient equity and debt funding; government subsidies;

private individuals, Venture Capitalists and IPOs are important financial sources

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Government Policies: United States vs. Other GEM Countries

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Education and Training: United States vs. Other GEM Countries

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Cultural and Social Norms: United States vs. Other GEM Countries

CyEC 2003, 17-12-2003 Prof. G. I. Doukidis 11

Financial Support: United States vs. Other GEM Countries

CyEC 2003, 17-12-2003 Prof. G. I. Doukidis 12

ΤΑΝΕΟ (New Economy Development Fund)

TANEO is a Fund of Funds investing in new Venture Capital Funds that focus in innovative businesses

As it is set out in Article 28 of Greek Law 2843/2000, which provides for the creation of TANEO, “The purpose of the company is the minority participation in venture capital organisations”.

The EC has decided (Sept. 2002) that the aid scheme involved is compatible with the EC treaty

Selection of VCs is based on commercial criteria Financing

• €45 mil. from the Hellenic Republic

• €105 mil. Private/Institutional through a Notes issue (guarantee provided by the Hellenic Republic)

CyEC 2003, 17-12-2003 Prof. G. I. Doukidis 13

ΤΑΝΕΟ (New Economy Development Fund)

What is NOT ΤΑΝΕΟ• It is NOT a venture capital fund• Therefore, it does NOT invest directly in small-medium

innovative companies What is ΤΑΝΕΟ

• It invests ONLY in venture capital funds– It undertakes up to 50% of their capital

• which invest in Greek, innovative, small and small-medium companies

So• TANEO does NOT INTERFERE with the investment

decisions made by the VC Funds• It sits in investment committees WITHOUT the right to

vote but with Veto power if decisions to invest are in breach of TANEO’s investment guidelines

CyEC 2003, 17-12-2003 Prof. G. I. Doukidis 14

The Upgraded Role of Universities

Social Institution • The provision of general education, the growth of

personality and the transmission of knowledge with the right wisdom

Developmental Institution • Contribution in the configuration of responsible people,

with the ability of scientific, social, cultural and political comprehension

Utilitarian Institution • Full education for a scientific and professional career

after graduation

Creation of New Leaders

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Entrepreneurship at Undergraduate Level Full Semester - AUEB

Practical Training of students for one semester in real working environments

Every Friday they return to University for two courses (and practical assignments)

• Business Plan and business strategy

• Entrepreneurship and Innovation

Participation in enterprising competitions, workshops with managers and entrepreneurs, business games, etc.

Difficult project with many challenges

150 students, 100 companies, 10 professors F.T.

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“Entrepreneurship and Development of New Enterprises” Graduate Program

Introduction to Entrepreneurship Legal and Financial Aspects of Entrepreneurial

Ventures Innovation and Creativity Strategic Business Partnerships Developing a Successful Business Plan Managing a Family Owned Business Doing Business in the Balkans Region Leadership Managing of Change Knowledge Management

Dec. Sciences MSc of the Athens University of

Economics and Business

December 17 2003, Cyprus

CyEC 2003 Conference

Professor Georgios I. Doukidis (gjd@aueb.gr)

Athens University of Economics and BusinessTANEO (New Economy Development Fund)