Economic growth and prosperity are among the most important factors in every economy and it won’t happen unless a favorable ecosystem in order to support entrepreneurial businesses exists. Entrepreneurship can be considered as economy’ growth engine which without it, efficiency and creating new businesses is very difficult. Recent surveys in various countries shows that not only training people and building entrepreneurship culture in society is necessary but also, we need a favorable ecosystem. In this regard, we understand that entrepreneurship is a multi-dimensional issue and we should focus on it from different aspects.
The Global Entrepreneurship Index (GEI) is a composite indicator of the health of the entrepreneurship ecosystem in a given country. The GEI measures both the quality of entrepreneurship and the extent and depth of the supporting entrepreneurial ecosystem. It is an indicator that evaluate the health of the entrepreneurship ecosystem through interactions of entrepreneurial attitude, ability and enthusiasm both individually and institutionally. Notice that, however entrepreneurship is almost individual in essence but it does happen only if the ecosystem allows it. For example, if the trained people with necessary skills exists but the institutional conditions of ecosystem are not well prepared and won’t let them accept the risk of launching a business, entrepreneurship doesn’t expand not at all.
Iran among world’s entrepreneurs
According to GEI report, Iran in 2018, in comparison to the previous year with 13 level of promotion, is 72 among 137 countries and also in MENA region its rank is 11 which shows 3 levels higher compared to previous year and it is the fifth country in terms of improving its score. Entrepreneurial Attitudes sub-index (ATT) considers opportunity perception, startup skills, risk acceptance, networking and cultural support. Opportunity perception, risk acceptance and cultural support are items that need more attention in Iran and government with introducing more entrepreneurs, passing more flexible laws and changing attitudes about entrepreneurs and also introducing values which are created by entrepreneurs more and more can convert these deficits to opportunities.
Entrepreneurial Abilities sub-index (ABT) includes opportunity startups, technology absorption, human capital, competition. Competition in this index includes individual variable (competitors) and institutional variables (overcoming market and regulation). In this sector, technology absorption outperforms other pillars but government through supporting new platforms and programs in science, technology, engineering and mathematics (STEM) can reinforce this pillar more and more.
Entrepreneurial Aspirations sub-index (ASP) includes product innovation, process innovation, high growth, internationalization and risk capital. According to 2018 statistics, product innovation, process innovation and internationalization are less efficient in this index. Product innovation includes individual variable (innovative product) and institutional variable (technology transfer). Government can help this pillar through reinforcement of cooperation with industry and universities and also supporting intellectual property. Process innovation is related to systems, methods, skills, equipment and new procedures that resulted in new products. In Internationalization`s pillar, export is very important and it seems that government can change this variable by setting incentives for export and showing bright perspectives.
All in all, this significant improvement in Iran’s place among world’s entrepreneurs is sign of bright horizon that look forward investors and new entrepreneurs.