Joint Inter-Governmental ConferenceParliamentary Assembly of the Mediterranean &

United Nations Inter-Agency Cluster on Trade and Productive CapacityGeneva

31 May 2013

Entrepreneurship and small and medium-sized enterprise

development:UNCTAD’s EMPRETEC Programme

Fiorina MugioneOfficer-in-Charge

Enterprise Development Branch

Entrepreneurship after the economic crisis: a global shift

Source: UNCTAD analysis based on Global Entrepreneurship Monitor reports 2007–2012

2007 2009 2010 201130

35

40

45

50

55

60

65

Greece

Brazil

Spain

United States

31%43% 34% 41%

53%70%2012

Entrepreneurs positively evaluating current business opportunities, %

As a result of the two-speed recovery from the economic crisis, entrepreneurial dynamism has been shifting towards developing countries…

Entrepreneurship, the informal sector, and youth

Source: Schneider, Buehn and Montenegro (2010)

Size of informal sector (% of official GDP)

…but a lot of this entrepreneurial activity still happens outside the formal sector. Globally, the informal sector is 35% of countries’ official GDP. 1.8 billion youth aged 10–24 (113 million in PAM Member States &

Associate Member States) 73 million young people unemployed globally

Starting a business

18%

Dealing with

construction permits

10%

Getting electricity

7%

Registering property

8%Getting credit10%

Protecting investors

7%

Paying taxes15%

Trading across

borders11%

Enforcing contracts

6%

Resolving insolvency

8%

Policy support for enabling business environment

108 countries enacted

201 regulatory reformsin 2012

Source: UNCTAD analysis, based on World Bank, Doing Business 2013

The UNCTAD Entrepreneurship Policy Framework comprises six areas that have a direct impact on

entrepreneurial activity

www.unctad.org/epf

www.unctad.org/epf

Examples of good practices from UNCTAD’s inventory (1)Policy area Examples of good practices

Formulating national entrepreneurship strategy

Serbia: adopted a National Strategy for Youth with a strategic objective of encouraging and stimulating all forms of employment, self-employment, and youth entrepreneurship

Optimizing the regulatory environment

Albania & the former Yugoslav Republic of Macedonia: introduced integrated, one-stop-shops for business registration

Croatia: business-related regulations no longer needed received “the chop.” The rest were included in a centralized registry. Over half of business regulations were eliminated or simplified.

Enhancing entrepreneurship education and skills

Mediterranean: INJAZ/Junior Achievement Worldwide teaches students about business, entrepreneurship, and life skills as part of a regular school curriculum

Jordan: Business Development Centre hosts UNCTAD’s EMPRETEC programme for entrepreneurship development

Examples of good practices from UNCTAD’s inventory (2)Policy area Examples of good practices

Facilitating technology exchange and innovation

Egypt: Ministry of Communications and Information Technology launched a strategy to support small and medium ICT enterprises

Morocco: Casablanca Technopark hosts 130 companies, most of which are start-ups and small and medium enterprises in the ICT sector

Improving access to finance

Egypt: a private credit bureau and registry, I-Score, allows small and medium-sized enterprises to build credit histories and check creditworthiness of consumers

Jordan: El Hassan Business Park supports entrepreneurial skills and activities, enables access to growth capital through the Bedaya angel investors network

Promoting awareness and networking

Global: Global Entrepreneurship Week 18–24 November 2013

www.empretec.netMore than 300,000 empretecos have been trained globally, of which 30% are women

In Jordan:

Participants established a business

New businesses

Jobs created per participant

Sales Revenues

Profitability

68% 127 4 +27% +32% +28%

Personal entrepreneurial competenciesOpportunity-seeking and initiativeEntrepreneurs seek opportunities and take the initiative to transform them into business situations. PersistenceWhen most people tend to abandon an activity, successful entrepreneurs stick with it. Fulfilling of commitmentsEntrepreneurs keep their promises, no matter how great the personal sacrifice. Demand for quality and efficiencyEntrepreneurs try to do something better, faster or cheaper. Calculated risk-takingTaking calculated risks is one of the primary concepts in entrepreneurship. Goal-settingThis is the most important competency because none of the rest will function without it. Entrepreneurs set goals and objectives which are meaningful and challenging. Information-seekingEntrepreneurs gather information about their clients, suppliers, technology and opportunities. Systematic planning and monitoringSystematic behaviour means acting in a logical way. Planning is deciding what to do. Monitoring means checking. Persuasion and networkingEntrepreneurs influence other people to follow them or do something for them. Independence and self-confidenceEntrepreneurs have a quiet self-assurance in their capability or potential to do something.

The story of Paola Tucunduva, Founder of Rotovic

Fostering youth entrepreneurship (1)Policy area Recommended actions for PAMFormulating national entrepreneurship strategy

Develop youth entrepreneurship strategies Map the current status Ensure coherence of youth entrepreneurship strategy

with other national policies Strengthen the institutional framework

Designate lead institution Ensure inter-agency coordination and engagement

with other stakeholders Measure results

Define clear performance indicators Monitor impact and incorporate feedback

Optimizing the regulatory environment

Facilitate formalization and new start-ups Review and reduce regulatory requirements Provide transparent information and one-stop shops

Guide entrepreneurs and enhance benefits of formalization

Implement information campaigns Assist start-ups in meeting regulatory requirements

Enhancing entrepreneurship education and skills

Integrate entrepreneurship education in education

Start at primary school level Promote entrepreneurship in vocational training

Fostering youth entrepreneurship (2)Policy area Recommended actions for PAMFacilitating technology exchange and innovation

Stimulate technology and innovation Support start-ups by establishing business

incubators, knowledge hubs, science parks Foster diffusion of ICTs

Support development of on-line and mobile market information platforms

Provide ICT training to target groupsImproving access to finance

Ensure access to relevant financial services Facilitate guarantees and collateral-free loan

screening Provide startup financing and attract angel investors

Boost capacity of the financial sector to serve start-ups

Help financial institutions (including proximity lenders) to better serve and understand youth

Adapt mobile banking technologies and regulations to needs and experiences of youth

Link entrepreneurship training to financing and expand access to basic loans and savings accounts

Promoting awareness and networking

Foster outreach to youth Help young entrepreneurs, including young women,

to create effective networks Organize events on opportunities in specific sectors