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On this brief data regarding classroom to boardroom creating a culture for high impact entrepreneurship.
From classroom
to boardroom
Creating a culture for
high-impact
entrepreneurship
2 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 3
George Atalla
Global Leader,
Government &
Public Sector
Maria Pinelli
Global
Vice Chair,
Strategic
Growth
Markets, EY
Strong culture, strong impact focuses on the role of culture in
driving high-impact entrepreneurship in G20 countries. The
report provides actionable recommendations for governments
and a clear, time-bound path for achieving support for young
entrepreneurs. Our report, released alongside this year’s G20
Young Entrepreneurs’ Alliance (YEA) Summit in Turkey, builds on
our Avoiding a lost generation reports. It drills down on the one
driver that is at once omnipresent, yet diffcult to quantify or
capture, for an entrepreneurial ecosystem:
entrepreneurial culture.
Culture is one of the fve pillars to the EY model of an
entrepreneurial ecosystem, alongside access to funding,
education, coordinated support, regulation and taxation. Our
research on the ecosystem confrms the importance of culture
for supporting high-impact entrepreneurship. For example, in
our G20 Entrepreneurship Barometer, which included survey
information from some 1,500 entrepreneurs, we see that
a supportive culture is associated with access to funding,
mentorship and innovation.
With high youth unemployment persisting in some G20 countries
and with ever-present demands for innovation, sustainability and
social inclusion, governments across the G20 are increasingly
focused on channeling support to high-impact entrepreneurship
among youth. The challenge then for policymakers is to
uncover best-in-class policies to foster real improvement in
entrepreneurial culture in their respective economies.
In our view, education policy is a major channel for governments
to drive changes to entrepreneurial culture. This is the primary
recommendation to G20 governments in our report. It builds
on our agenda of policy recommendations in Avoiding a lost
generation, Part 2, and in the G20 YEA communique for
2015, where this was one of the fnal recommendations. In
pivoting education to focus on the tools and skills necessary for
entrepreneurship, policies can support a culture supportive of
entrepreneurship through a youth’s lifetime.
At EY, we frmly believe the solution lies in the “Power of Three,”
where government, business and entrepreneurs join forces to
create new opportunities for young entrepreneurs and drive
lasting change. Any education policy initiative focused on culture
needs to involve industry and entrepreneurs. We propose
some action points here for governments, on experiential and
vocational education, mentorship, and mobility. These initiatives
can provide comprehensive learning opportunities for young
entrepreneurs and really drive home a supportive culture
through experience.
Change to education and culture will take time. This is all
the more reason to start today, working across government,
enterprise and entrepreneurs to drive investment in young
entrepreneurs and create a shift in culture.
The G20 YEA is a global
network of young
entrepreneurs and the
organizations that support
them, representing
over 500,000 young
entrepreneurs across G20
countries and the European
Union. The G20 YEA members have already created an
estimated 10 million jobs.
It is critical to provide a supportive culture for young people to
convert their brilliant ideas into projects and action, and make
important contributions to their economies. An entrepreneur is
someone who sees the world differently from others. They see
opportunity in depressed times, they have far-reaching vision
and they believe in their ideas when nobody else does. They
often work harder than anyone will ever know, and they are often
alone, all of which can create immense self-doubt. Creating a
supportive culture is key.
In 2008, Turkey had a 6% entrepreneurship rate. This increased
to 8.6% in 2010. It is an improvement, but still a very low rate,
considering that 52% of Turkish people are below the age of 29.
Overall, the concept of entrepreneurship is still new in Turkey.
Taking a government job is seen as a safer, steadier way to start
a career. Educating young people and providing role models for
them is key to increasing the entrepreneurship rate.
Government support is also crucial to encouraging
entrepreneurship. Tax systems need to support
entrepreneurship. Governments also have a role to play in
encouraging more angel investors and seed funds. Accessing
capital is one of the hardest problems to transcend. According
to a TUGIAD survey, in Turkey, 55% of the entrepreneurs have
benefted from government support programs.
All of the things that I mentioned are outcomes of a strong
entrepreneurship culture. If a culture of entrepreneurship can be
created, education, access to funding, coordinated support and
good regulation have the strong foundation they need.
The G20 YEA is very pleased to include the ideas presented
in this report in the 2015 G20 Leaders’ declaration, B20, T20
and Y20 recommendations. We look forward to supporting the
Turkish Government in the improvement of entrepreneurship
culture with a focus on high-impact entrepreneurship.
How can we create a culture for
high-impact entrepreneurship?
Rahmi Çuhac?
Chairman, G20
YEA Summit,
?stanbul 2015
and President
of TUGIAD
4 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
Strong culture, strong impact: policy to drive
high-impact entrepreneurship
In a global economic environment characterized by
disproportionally high youth unemployment, governments are
searching for sustainable answers to this major labor market
and social challenge. Any solutions with lasting impact need
to be self-sustaining. Policymakers need to boost the business
ecosystems in their economies to effectively stimulate economic
growth and employment over the longer term. Entrepreneurship
is a signifcant catalyst for job creation and innovation. “High
impact” entrepreneurial companies bring disproportionately
large economic benefts, refected in their contribution to job
creation, innovation or customer benefts, wealth creation, and
societal impact.
1
From a policy perspective, fostering the establishment and
growth of high-impact entrepreneurship is critical to generating
gains in income, employment, productivity and competitiveness.
There are well-established, broad-based policy prescriptions
for stimulating entrepreneurship — for example, increasing
access to capital. However, to really drive impact through
successful and scalable entrepreneurship, a less tangible
but omnipresent factor needs to be addressed: culture. A
positive entrepreneurship culture is crucial to advancing the
development and scaling of high-impact frms. Of course, culture
is inextricably linked to education, and governments can follow
clear, actionable strategies to promote culture and high-impact
entrepreneurship.
High-impact entrepreneurship is
a policy priority
For policymakers, stimulating high-impact entrepreneurship
is a priority as it promotes job creation, innovation, wealth
creation and positive societal impact.
2
High-impact frms are
estimated to drive the lion’s share of job creation among start-up
frms, with a recent global study showing that the top 1% of
frms contribute 44% of total revenue and 40% of total jobs.
3
Entrepreneurship can also provide an important link between
R&D and economic growth through its role in knowledge transfer
and commercialization. “Entrepreneurial capital”
4
can provide
incumbent companies with innovation and creative thinking.
Furthermore, high-impact entrepreneurs often make a difference
to their society beyond their immediate business, with new
innovation or business activity driving wider positive benefts,
1 “The Bold Ones: High-Impact Entrepreneurs Who Transform Industries,” EY and
the World Economic Forum, 2014.
2 Ibid.
3 “Report: Top 1% of Entrepreneurial Firms Responsible for Largest Share of Job
Creation among Start-ups,” World Economic Forum, www.weforum.org/news/
report-top-1-entrepreneurial-frms-responsible-largest-share-job-creation-
among-start-ups, accessed July 2015.
4 K. Kukoc and D. Regan, “Measuring Entrepreneurship,” Australian Treasury, 2008.
in turn indirectly expanding wealth, opportunity and economic
empowerment for those in their community.
5
“High-impact” policy solutions are systemic
Having set a clear objective of high-impact entrepreneurship,
governments are continually focused on effective policy
solutions. New interventions cannot be considered in a vacuum.
Just as an entrepreneur exists in a network of peers, mentors,
investors, competitors and policymakers, entrepreneurship
policies are part of an ecosystem. It is generally accepted that
there are fve major pillars to this ecosystem: access to funding,
education, coordinated support, regulation and taxation,
and culture.
6
The entrepreneurial development framework: fve pillars that
foster entrepreneurship
7
Access to funding
Seed
Start-up
Expansion
Growth capital
Tax and regulation
Taxation incentives
Ease of starting a business
Business-friendly
legislation/policies
Education and training
Pre-university education
University education
Entrepreneurship-speci?c
training
Informal education/lifelong
learning
Entrepreneurship culture
Tolerance of risk and failure
Preference for self-employment
Innovation and research culture
Celebration of self-made wealth
Coordinated support
Mentors, advisors,
networks and clubs
Business incubators,
clusters, parks,
business centers
Each pillar is equally important in building a stable and
sustainable ecosystem.
8
Parts of the ecosystem are tightly
connected. Policy initiatives can drive effects throughout he
ecosystem. As a result, any support needs to be holistic, with
markets, infrastructure and regulatory initiatives working
in tandem with other critical factors, such as culture and
mentorship, to drive growth in entrepreneurship.
5 “The Bold Ones: High-Impact Entrepreneurs Who Transform Industries,” EY and
the World Economic Forum, 2014.
6 Innovation and globalization are two additional enablers that are expected to
continue to grow in importance in terms of their impact on the entrepreneurship
environment. While not captured as stand-alone pillars in this model, these
drivers are assumed to be integrated across activities in all of the fve pillars
listed here.
7 The Power of Three: together, governments, entrepreneurs and corporations
can spur growth across the G20, EY, 2014.
8 Equal weight in the EY Entrepreneurship Barometer Model (2013).
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 5
The “Power of Three” for high-impact
entrepreneurship
No one can go it alone when it comes to high-impact
entrepreneurship. The “Power of Three” is critical for effecting
positive change. With all elements of the ecosystem closely
interlinked, fostering an effective entrepreneurial ecosystem is
clearly a joint effort between government, entrepreneurs and
enterprise. Working together, these three actors can support
a thriving entrepreneurial ecosystem, providing different
strengths and capabilities to drive results.
“ Canada provides a truly unique entrepreneurial ecosystem
to build a company. With access to some of the brightest
minds from top globally ranked universities and some of the
best venture capital frms in the world, Canada has started to
shape and impact the future of the global economy. Without
the incredible support of revolutionary education programs
like The Next 36 and high-impact programs like FounderFuel
and Futurpreneur Canada, my business wouldn’t be where
it is today.”
Mike Schmidt
SFX Entertainment
The Power of Three is central to an effective
entrepreneurial ecosystem
9
Entrepreneurs
Government Corporations
Investors
Regulation
Media
School/education
Culture
Organizations
supporting
entrepreneurship
9 EY Barometer report.
The EY G20 Entrepreneurship Barometer
The EY G20 Entrepreneurship Barometer is a comprehensive
study on the entrepreneurial ecosystem in G20 countries.
The report provides quantitative and qualitative assessment
of entrepreneurial ecosystems across the G20. It is designed
to help G20 countries benchmark their performance and
progress on the vital issue of supporting entrepreneurs.
It enables each G20 nation to identify current strengths
in its entrepreneurial environment, as well as the main
opportunities for further development.
The report includes assessment and best-practice
recommendations across the fve pillars of the
entrepreneurial ecosystem: access to funding,
entrepreneurship culture, tax and regulation, education and
training, and coordinated support. It includes a model for
scoring countries across the fve pillars, taking input from:
• A survey of more than 1,500 leading entrepreneurs across
the G20 countries
• Business environment indicators directly infuencing the
entrepreneurship ecosystem in each country
Barometer scores are corroborated with unique qualitative
insights, including:
• Exclusive insights from more than 250 entrepreneurs,
independent academics and experts, and EY partners
across the G20 countries
• An analysis of more than 200 government leading
practices from across the G20 countries
As a result, the Barometer provides a powerful framework
to enable governments, entrepreneurs and businesses to
assess their environment, identify opportunities and improve
entrepreneurial ecosystems in the future.
6 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
Culture can supercharge high-impact
entrepreneurship
The development of entrepreneurship culture stands out as one
pillar in the ecosystem. This has enormous untapped potential to
strengthen support for entrepreneurial activity.
Unlike tax policies, government grants or education reform,
the explicit levers for creating a positive “entrepreneurship
culture” are not well-defned. As a result, it presents a signifcant
opportunity for policymakers. Entrepreneurship culture is
intertwined with entrepreneurial attitudes
10
and education,
and the initial challenge is to truly understand its role and
signifcance in entrepreneurial activity in order to design
impactful policy initiatives that help support it.
With the right support, governments can help individuals
adopt an “entrepreneurial mindset” in which they strive to be
job creators rather than job seekers and drive entrepreneurial
activity higher. The presence of strong role models, high status
of entrepreneurs, and social tolerance of business risk and
failure are important in spurring a supportive culture.
11
“ Entrepreneurial culture is not just about starting a start-up.
It is about culture, mindset, values, principles, etc. Now this
is needed. I can imagine Indonesia to be a country that will
really fourish and be one of the largest world economies if
this culture is instilled in every worker in the country as well.
But it has to start from the leaders of the country — from
the government.”
Muhammad Md Rahim
qiscus Pte Ltd./PT Global Komunikasi Teknologi Digital,
Singapore and Malaysia
10 Per the construction of the Global Entrepreneurship Development Institute
(GEDI) Index, this is one of the sub-pillars for entrepreneurial attitudes.
11 P. Vogel, “The employment outlook for youth: building entrepreneurial
ecosystems as a way forward,” World Entrepreneurship Forum, www.world-
entrepreneurship-forum.com/content/download/9326/170210/version/2/
fle/Ecosystems_Paper_PeterVogel.pdf, accessed May 2015.
G20 entrepreneurs speak: supportive culture
is critical to their growth
Entrepreneurs confrm anecdotal feedback that culture matters
to their decision-making and activities. This is also clear in the
survey results in the EY G20 Entrepreneurship Barometer,
12
which show a signifcant relationship between culture and other
dimensions of the ecosystem and provides more color on the link
between culture and success. For example, there is an important
association between entrepreneurship culture and access to
funding in the Barometer survey. Respondents with a reportedly
weak culture are almost four times as likely to report problems
accessing capital as those with a very supportive culture. Those
entrepreneurs in a country with weak culture were more than
1.5 times more likely to suggest that the ease of starting a
business had become more diffcult in recent years, compared to
those with a highly supportive culture. Also, those entrepreneurs
in weak cultures were more than twice as likely to report
deterioration in access to mentorship in recent years, relative to
those in a supportive culture.
EY G20 Entrepreneurship Barometer results suggest
an important relationship between culture and other
entrepreneurship drivers
0 1 2 3 4
Access to funding
Starting a business
Access to
mentorship
Reported relative
dif?culty for those
with a weak culture
Odds ratio
12 G20 Entrepreneurship Barometer, EY, 2013.
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 7
The importance of entrepreneurship culture by the numbers: insight from the EY G20
Entrepreneurship Barometer
The EY G20 Entrepreneurship Barometer scores show an association between culture and overall ecosystem strength.
The G20 Barometer overall country rankings …
Quartile 1 Quartile 2 Quartile 3 Quartile 4
a n i t n e g r A l i z a r B U E a i l a r t s u A
a i d n I a n i h C e c n a r F a d a n a C
South Korea Germany Mexico Indonesia
United Kingdom Japan Russia Italy
United States South Africa Saudi Arabia Turkey
Note: Countries
are listed in
alphabetical order
per quartile.
Overall country rankings are closely aligned with rankings on culture. For those top-performing Quartile 1 countries in the
G20 Entrepreneurship Barometer, entrepreneurship culture is one pillar, alongside access to funding, where the overall
top-performers are also top-ranked. In fact, while the index is equally weighted across the fve pillars, the relatively close
association between the overall score and culture score for the Quartile 1 countries highlights the importance of culture in
reinforcing the total performance of the entrepreneurial ecosystem.
Top performers in the Barometer are also top performers on culture
Rankings and scores — pillars
Ranking Access to
funding
Score Entrepreneurship
culture
Score Tax and
regulation
Score Education and
training
Score Coordinated
support
Score
1 United States 7.12 United States 7.67 Saudi Arabia 6.40 France 6.58 Russia 6.23
2 United Kingdom 6.86 South Korea 7.53 Canada 6.34 Australia 6.53 Mexico 5.89
3 China 6.75 Canada 7.45 South Korea 6.34 United States 6.50 Brazil 5.87
4 Canada 6.62 Japan 7.28 United Kingdom 6.19 South Korea 6.40 Indonesia 5.84
5 Australia 6.48 Australia 7.18 South Africa 6.10 EU 6.25 India 5.76
8 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
The EY G20 Entrepreneurship Barometer also shows an important link between entrepreneurship culture and innovation, which is
an important contributor to high-impact entrepreneurship.
13
Comparing the survey results for those entrepreneurs who identify a
supportive
14
vs. an unsupportive
15
environment in their home country is telling. Those backed by a supportive culture report more
positive sentiment on innovation, by a clear margin. In fact, these frms see more opportunity in innovation and report a greater
willingness to collaborate with external partners on innovation.
“Innovative companies see opportunity where others see
risk” (yes responses)
79%
80%
81%
82%
83%
84%
85%
86%
All Supportive
culture
Unsupportive
culture
“We collaborate externally to drive innovation”
(yes responses)
All Supportive
culture
Unsupportive
culture
55%
60%
65%
70%
75%
80%
The two groups also reveal important differences in how innovation is integrated in internal business structures and processes.
Those entrepreneurs in a supportive culture show stronger performance. For example, more than 75% of entrepreneurs surveyed in
a country with a supportive culture reported a formalized approach to innovation in their company. This compares to 66% of frms
where the culture is reportedly unsupportive.
“We currently have a strategy for innovation in place within
the company” (yes responses)
All Supportive
culture
Unsupportive
culture
50%
55%
60%
65%
70%
75%
“We have a formalized approach where everyone contributes
to innovation” (yes responses)
All Supportive
culture
Unsupportive
culture
60%
65%
70%
75%
80%
13 “The Bold Ones: High-Impact Entrepreneurs Who Transform Industries,” EY and the World Economic Forum, 2014.
14 “Supportive culture” is defned here as those survey respondents who indicate that “business failure in my country is perceived as a learning opportunity.”
15 “Unsupportive culture” is defned here as those survey respondents who indicate that “business failure in my country is perceived as a career failure.”
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 9
EY Entrepreneur Of The Year™ Culture Case
Study: Regeneron
The July-December 2014 edition of Exceptional magazine
(Americas) profled Regeneron Pharmaceuticals, a US-based
biotechnology company. Its co-founders Leonard Schleifer
and George Yancopoulos indicated that the company
operates differently than other biotech giants due to its
ideas-driven culture.
The G20 Barometer survey results corroborate with other
studies that highlight the unequivocal importance of culture. For
example, Global Entrepreneurship Monitor (GEM) data shows a
higher presence of nascent and new entrepreneurs in countries
with a supportive entrepreneurship culture. At the same time,
the GEM survey results also refect lower entrepreneurship
activity levels in those countries where fear of failure is
more elevated.
“ The entrepreneurial culture is the most important thing to
consider when starting a new company or initiatives. This
culture must drive the creativity and represents the company’s
mission. The culture stems from the founder, but it must be well
received by the whole team. The best way to do is to ask them:
what do they care about? What do they believe? What are their
expectations joining on board? The founder must encompass
them in his mission and values, so the answers will be under the
company’s mission. In addition, the culture also leads all people
not only to know but also to believe what the most important
value is for the company in the future.”
William Suryawan
Del Mare Snack, Indonesia
Global survey data highlights the association between entrepreneurial culture and entrepreneurship activity
0
10
20
30
40
50
60
70
80
90
100
0 10 20 30 40
Entrepreneurship a desirable career choice
Total entrepreneurial activity
0 10 20 30 40
Fear of failure
Total entrepreneurial activity
0
10
20
30
40
50
60
70
Source: Global Entrepreneurship Monitor Database, 2015
“ Regeneron has a strict commitment to removing all forms of bureaucracy. Every employee is encouraged to challenge other’s ideas and
carve out their own path. The sense of collaboration is so strong that when an innovation is celebrated, the team often has a hard time
pinpointing the originator. There is only so much leadership that can come from the top. What we do is value and incentivize innovation.”
Leonard Schleifer
CEO, Regeneron
Total entrepreneurial
activity is the percentage
of those aged 18–64
who are either a
nascent entrepreneur
or owner-manager of a
new business.
“Entrepreneurship is a
desirable career choice”
refects the percentage
of those aged 18–64 who
agree with the statement
that, in their country, most
people consider starting
a business as a desirable
career choice.
“Fear of failure” refects
the percentage of those
aged 18–64 with positive
perceived opportunities
who indicate that fear of
failure would prevent them
from setting up a business.
10 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
National studies also confrm the strong connection, including
the TUG?AD Survey in Turkey (2014). The survey helps assess
innovative small and medium-sized enterprises (SMEs) and
entrepreneurial frms in the country. It reveals a clear link
between an innovative business culture and government
support programs aimed to scale up the innovation activities.
Notably, 55% of the respondents have been part of government-
supported R&D/innovation programs. At the same time, 40%
of the SMEs state that what makes these SMEs different is
their success in launching new products to the Turkish market.
These two fndings in the TUG?AD Survey suggest that in Turkey,
innovation culture is directly affected by the Government, and
the incentives programs run by the Government are the main
tools in setting the innovation culture.
For governments, there is a clear takeaway that effective policy
actions to strengthen to entrepreneurship culture are critical to
boosting the entrepreneurial ecosystem and supporting high-
impact entrepreneurship.
Supportive entrepreneurship culture is also a
critical catalyst for inclusive, and sustainable,
economic growth
Culture also has an important social impact in strengthening the
entrepreneurial ecosystem. Creating “decent work” for youth is an
important objective for any job creation program. The connection
between good jobs and social cohesion is clear, with uprisings in
some economies in recent years highlighting the importance of
employment opportunities that enable youth to reach their full
potential.
16
IFC research also fnds that quality private sector jobs
help contribute to the creation of global public benefts such as
respect for rights, increased levels of trust, human capital, gender
equality, poverty reduction and peace.
17
The meaning of “good” or “decent” jobs varies depending the
economy or level of development of a country. Whatever the
context, the promotion of entrepreneurship culture is central
to the creation of these opportunities. Entrepreneurs can gain
satisfaction from developing an independent business, creating
value for customers and generating their own wealth.
18
The EY G20 Entrepreneurship Barometer shows that a
supportive culture is one that provides a level playing feld for all
entrepreneurs. The culture should be inclusive to young people —
for example, in accessing fnance. In those countries where the
culture is supportive, young entrepreneurs are relatively equal to
entrepreneurs overall in terms of access to funding. The spread in
16 “Quality of Jobs: IFC Jobs Study 2013,” IFC, www.ifc.org/wps/wcm/
connect/1c91a5804e6f1b89aceeacfce4951bf6/IFC_FULL+JOB+REPORT_
REV2_JYC.pdf?MOD=AJPERES, accessed June 2015.
17 Ibid.
18 M. Hitt, et al., “Strategic Entrepreneurship: Creating Value for Individuals,
Organizations and Society,” Texas A&M University, 2012.
response between those young entrepreneurs reporting diffculty
in accessing funding, and entrepreneurs overall, is relatively
narrow in those countries with a supportive culture vs. where the
culture is a hindrance.
Spotlight: Entrepreneurship culture in Turkey
In recent years, Turkey has experienced strong economic
growth and is increasingly interconnected with international
markets. As result, the Turkish entrepreneurial culture has
made big advances, though there is still signifcant room
for growth.
Business life in Turkey used to be dominated by private
holding companies and state economic enterprises.
Paternalistic cultural values appear to be dominant among
Turkish managers (Aycan et al., 2001; Pasa et al., 2001).
Professionalism and rationalism orientations, together with
a cultural emphasis on power, hierarchy and relationships,
for instance, can be seen in most Turkish frms (Dan??man &
Özgen, 2008).
The state has been an important institution in shaping the
business structure (Kabasakal & Bodur, 1998). Turkish
private companies remained highly dependent on the state
for fnancial incentives, and the state often intervenes with
frequent and unpredictable policy changes, which introduce
uncertainties in business life (Bugra, 1990). Yet, in the
last decade, Turkey has widely reformed its institutions.
This effort led to a strong, fast-improving entrepreneurial
environment. In July 2011, based on 1,001 interviews of
G20 entrepreneurs, Turkish respondents described their
country as the most business friendly of the G20 (G20
Entrepreneurship Barometer, 2011).
While this entrepreneurship climate is increasingly favorable,
new business density — a measure of new businesses
registered per 1,000 people aged 15–64 — is lower than the
average for the rapid-growth markets in the G20; this could
be a result of traditional conglomerates, rather than small
enterprises, having driven much of the growth in economic
activity in Turkey (G20 Entrepreneurship Barometer, 2011).
However, the entrepreneurial culture in Turkey has
signifcantly improved, and the country reportedly has
many more opportunities for education and training in
entrepreneurship than it did fve years ago. In the end, 80%
of the entrepreneurs interviewed indicated that Turkish
culture encourages business, and 90% are convinced that
job creation by entrepreneurs greatly enhances the culture
(G20 Entrepreneurship Barometer, 2011). Other major
indicators of the entrepreneurial ecosystem are also on a
trajectory of improvement. Entrepreneurs do still fnd it
diffcult to access funding in Turkey, yet this has improved
markedly in recent years. The regulatory and taxation
environment has also become more favorable.
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 11
“Accessing funding is diffcult” (yes responses)
All Supportive
culture
Unsupportive
culture
0
20%
40%
60%
80%
100%
All entrepreneurs Young entrepreneurs
Relative diffculty for young entrepreneurs to access funding
All Supportive
culture
Unsupportive
culture
0
1%
2%
3%
4%
EY best-practice culture case study: Network
for Teaching Entrepreneurship (NFTE)
In the January-June 2014 edition of Exceptional magazine
(EMEIA), Amy Rosen, CEO of the US-based NFTE, talked about
how these programs inspire young people from low-income
communities to stay in schools, recognize business opportunities
and plan for a successful future.
“I have the privilege of meeting more and more of our program
alumni every day. There is a great young man named Rodney
Walker who is now at Yale Graduate School. When he was 5, his
parents were arrested on drug charges, and he spent the next
decade in foster homes until he ran away and began living on
the streets.
“So how did he go from there to here? He walked into an NFTE
classroom after coming into school for food. Through this class,
he started a video production business. He is a powerful example
of what can be achieved.”
Effective policy needs a deep understanding of cultural needs,
particularly education
For governments, the case for policy initiatives to support
entrepreneurial culture, from economic and social standpoints, is
clear. Of course, linking inputs to outcomes is a major challenge,
particularly in relation to policies aimed at creating a supportive
culture. The design and delivery of effective policy rests on a
deep understanding of what will really impact the culture in a
given economy. This is where education comes to the forefront.
The EY G20 Entrepreneurship Barometer Survey asked
respondents to identify initiatives that would most improve
students’ perceptions of entrepreneurship as a career path.
19
The results highlighted the signifcant interrelationship between
culture and education. Entrepreneurs saw education as their
number one priority in terms of key initiatives that could support
the long-term growth of entrepreneurship in their economies. In
total, more than one-third of respondents identifed educators,
teaming, and mentoring programs and industry-specifc training
as the top initiatives.
“ If there is one thing that needs to be done, we need to start
early. This culture needs to be encouraged and facilitated right
from school days. Students needs to be encouraged to think,
read, share ideas, debate, research, talk to seniors, talk to
successful people, expose them to things beyond the country to
open their minds to new ideas.”
Muhammad Md Rahim
qiscus Pte Ltd./PT Global Komunikasi Teknologi Digital,
Singapore and Malaysia
19 Indicator taken here as a proxy for entrepreneurship culture, in line with
GEM data.
12 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
What would most improve students’ perceptions on entrepreneurship as a career path?
0% 10% 20% 30% 40%
Coaching programs for entrepreneurs
Government programs supporting
entrepreneurship
Promotion of success stories to students
Speci?c programs at
universities/business schools
Others
What are the top initiatives and organizations that could improve long-term growth in entrepreneurship/entrepreneurs in
your country?
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Business incubators
Educators
Entrepreneur clubs and associations
Teaming/mentor programs
Government start-up/other programs
University incubators
Venture capital associations
Industry-speci?c training programs
Entrepreneurial workshops/support
meetings
Small-business administrations
Chambers of commerce
Corporate and nongovernmental
advisors
Other, please specify
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 13
To grow high-impact entrepreneurship, culture
policies should focus on learning
To grow and sustain high-impact entrepreneurship, individuals,
government institutions and businesses all have an important
role to play in fostering a supportive entrepreneurial culture.
It is clear from the G20 Entrepreneurship Barometer survey
that entrepreneurs welcome a role for government, particularly
in education, to provide an institutional framework that can
“supercharge” the entrepreneurial ecosystem and drive
sustainable gains.
More generally, the link between culture and education highlights that economies with stronger entrepreneurial cultures are more
tolerant and understanding of business failure and do not perceive this as a barrier to entry, but as an opportunity to learn. The
G20 Barometer shows that business failure is perceived considerably more constructively among those entrepreneurs who have
received entrepreneurship education than among those who have not, per the fgures below. This suggests that entrepreneurial
initiatives taught at school can reinforce risk-taking and a disposition toward entrepreneurial activity.
For those entrepreneurs involved in, or who have
participated in, entrepreneurship education: How is business
failure perceived?
0% 10% 20% 30%
A career
failure
A learning
opportunity
For those entrepreneurs who have not received
entrepreneurship education: How is business failure
perceived?
A career
failure
A learning
opportunity
18% 20% 22% 24% 26%
Our key recommendation on culture to G20
governments is to increasingly align the
learning ecosystem with workforce needs
This builds on our agenda of policy recommendations in our
report on youth unemployment and entrepreneurship, Avoiding
a lost generation, Part 2, and in the G20 YEA communique
for 2015, where this was one of the fnal recommendations.
In focusing education policy on relevant tools for
entrepreneurship, governments can foster a culture supportive
of entrepreneurship, from elementary stages of learning through
to adulthood.
Culture is a very important part of the entrepreneurial
environment. To encourage more entrepreneurs, a country
needs a set of beliefs that make entrepreneurship a valid and
respected career choice. To develop an entrepreneurship
culture, you have to create an infrastructure and for that,
you have to start from the basics. At this point, the right
place to start is education and lifelong training.
Ba?ak ?lisulu
Secretary General, TUGIAD
Sherpa, G20 YEA Turkey
[email protected]
While no “quick fx” for culture, education
can support culture in several stages
A new paradigm for education, and the cultural shift it
can foster, will not happen overnight — in fact, it will likely
manifest over a generation, if not more. For governments,
this means that a long-term commitment to supporting
entrepreneurship through education is crucial. New policy
can be enacted in stages, with some near-term initiatives
possible to set the course for deepening changes in
entrepreneurship culture, through education, over time.
We see new policy to support culture, through the education
system, as working along a continuum. Governments
can generate some “quick wins” now, and also start to
put in place the foundations for a transformational shift
in entrepreneurship culture over the long term. To get
this change process moving, we highlight six specifc
recommendations for governments to drive stronger
entrepreneurship culture through education in the coming
months, years and even decades.
Rohan Malik
Global Emerging Markets and Deputy Global
Leader, Government & Public Sector
[email protected]
14 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
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1
2
3
4
5
6
Create a G20 multilateral
entrepreneurs start-up visa
Encourage
international networking
Start teaching
entrepreneurship early
Focus on “quality”
entrepreneurship and
“quality” employment
Establish longitudinal
programs to link culture and
education through to impact
Foster these programs through
the secondary/tertiary education
system with a pivot toward
vocational education and
industry partnerships
Now
Near term
Medium term
Long term
Six specifc recommendations
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 15
16 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
1. Create a G20 multilateral entrepreneurs
start-up visa (now)
Multilateral visas, or regional visa programs, are crucial to
improve labor mobility, conduct business internationally, and
transfer positive entrepreneurial culture and norms throughout
the G20.
Entrepreneur visas (UK): The UK Government provides three
types of visas for budding entrepreneurs: Tier 1 (Entrepreneur)
visa is for eligible applicants who want to set up or run a business
in the UK, with access to at least £50,000 in investment funds.
20
Tier 1 (Graduate Entrepreneur) visa is applicable for eligible
graduates who have been offcially endorsed as having a genuine
and credible business idea.
21
Lastly, a Standard Visitor visa is
issued to people interested in getting start-up funding or taking
over, joining or running a business in the UK.
22
During 2008–13,
the number of Tier 1 visas issued jumped from 27 to 1,171.
23
Start-up visa (Canada): The Canadian Government launched
a Start-Up Visa Program for immigrant entrepreneurs on
1 April 2013. The fve-year pilot program is the frst of its kind in
the world, linking innovative foreign entrepreneurs who want to
launch a business in Canada with experienced Canadian private
sector frms.
24
Foreign entrepreneurs (or an entrepreneurial
team of up to fve individuals) are considered for the program
if they have a commitment (1) from a designated business
incubator, (2) of at least C$75,000 from a designated angel
investor group or (3) of at least C$200,000 from a designated
venture capital fund. The entrepreneurial team and the investing
entity are required to have an equity stake in the business of
over 50%, and each individual member of the entrepreneurial
team is required to have at least a 10% equity stake. Applications
to the Start-Up Visa Program have been increasing, with 16
foreign entrepreneurs having received permanent residence
through the program, and dozens more are currently in the
process.
25
The frst recipients experienced success: three
20 “Tier 1 (entrepreneur) visa,” UK Government, www.gov.uk/tier-1-entrepreneur,
accessed May 2015.
21 “Tier 1 (graduate entrepreneur) visa,” UK Government, www.gov.uk/tier-1-
graduate-entrepreneur-visa, accessed May 2015.
22 “Tier 1 (standard visitor) visa,” UK Government,https://www.gov.uk/standard-
visitor-visa, accessed May 2015.
23 “Migration statistics,” UK Government,https://www.gov.uk/government/
collections/migration-statistics, accessed May 2015.
24 “Canada open to business for start-up entrepreneurs,” Government of Canada,http://news.gc.ca/web/article-en.do?nid=833229, accessed May 2015.
25 “Startup visa,” Government of Canada, www.cic.gc.ca/english/immigrate/
business/start-up, accessed June 2015.
months after launching their technology company that enables
voice conversations on social media, they were acquired by
Hootsuite Media Inc. for an undisclosed price.
26
2. Encourage international networking (now)
New and young entrepreneurs need the opportunity to
participate in international networking and collaboration with
other entrepreneurs to exchange knowledge, mentor each other
and transmit entrepreneurship culture. Young entrepreneurs
need to be exposed to international markets, through trade
missions, to drive their commercial education, network and also
support cultural exchange. An exchange program, and access to
tailored trade missions, would be powerful initiatives.
Student mobility programs (EU): The Erasmus for Young
Entrepreneurs program, initiated by the European Union in
2009, aims to help new entrepreneurs acquire relevant skills
for managing an SME by spending time in another European
Union country.. As of May 2015, more than 3000 exchanges
have taken place, involving more than 6,000 entrepreneurs. The
program aims to achieve 10,000 exchanges by 2020.
27
Targeted trade missions (France): France is undergoing a start-
up renaissance driven by a new generation of entrepreneurs,
investors, engineers, designers and other talented people. It is a
new Start-up Republic, home to vibrant tech hubs and a hotbed
of talent, flled with a strong entrepreneurial culture. The name
of this movement is “La French Tech,” a banner shared by French
start-ups and the French Government, which supports them.
Launched in 2013, the €200 million initiative promotes French
start-ups under a single brand, both in France and abroad. It
also offers mentoring, funding, recruitment advice and other
resources to ensure the ecosystem has the right tools to grow.
At CES 2015, France was the best-represented nation in Europe,
with 120 exhibitors from a wide range of sectors.
Targeted trade missions (Canada): The Canadian Trade
Commissioner Services offers the Business Women in
International Trade (BWIT) Program. BWIT offers products
to assist export-ready Canadian women-owned businesses
to expand their enterprises into international markets. The
Canadian Government facilitated the Canadian Business Women
Trade Mission to Brazil during 17–20 May 2015. It aimed to
increase the profle of Canadian women and help them network
26 B. Bouw, “Visa program opens doors to overseas talent,” The Globe and Mail,
October 2014.
27 “Erasmus for young entrepreneurs,” European Commission,https://ec.europa.
eu/easme/sites/easme-site/fles/info_day_presentation_eye_2015.pdf,
accessed June 2015.
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 17
with the local business community in Sao Paulo, Brazil. The focus
of this trade mission was key sectors, including agriculture and
agri-food products, education, information and communications
technology (ICT), and life sciences. During the visit, over 50
business-to-business (B2B) meetings were organized with
Brazilian companies and organizations for the Canadian
participants. The networking reception attracted more than 75
Brazilian contacts to meet with the Canadian delegation.
28
At
least one negotiation is underway for a Canadian business to
expand into Brazil.
3. Start teaching entrepreneurship
early (near term)
Governments need to support entrepreneurship education from
the elementary school level to engender an “entrepreneurial
mindset” and expand entrepreneurial culture. This comes
through experiential learning and entrepreneurship training
in schools, as well as extracurricular programs. An important
complement will also be informal learning opportunities for
youth, including workshops, other experiential learning and
online tools.
“The Fiver Challenge” (UK): The UK Government is supporting
“The Fiver Challenge,” where thousands of school pupils
aged 5–11 are given £5 to set up their own mini-business and
encouraged to make a proft while engaging with the local
community.
29
The scheme, launched in 2014, recorded over
30,000 registrations from 500+ schools, far exceeding its initial
target of 20,000 registrations by mid-June. The plan is to double
this program by next year.
30, 31
Entrepreneurship studies in primary schools (Slovenia):
The Slovenian Government funded and implemented a pilot
extracurricular course, called UPI (Ustvarjalnost, Podjetnost,
Inovativnost), in primary schools to be held over two
28 “Canadian Business Women: Trade Mission to Brazil,” Foreign Affairs, Trade
and Development Canada, www.international.gc.ca/commerce/visit-visite/
women_brazil-femmes_bresil_2015.aspx?lang=eng, accessed June 2015;
“Harper Government creating export opportunities for Canadian business
women,” PR Newswire, www.kusi.com/story/29115545/harper-government-
creating-export-opportunities-for-canadian-business-women-labour-and-
status-of-women-minister-kellie-leitch-concludes-frst-ever, 20 May 2015.
29 “The Fiver Challenge,” UK Government, www.gov.uk/government/
news/the-fver-challenge-pupils-to-start-own-business-with-a-5-loan,
accessed June 2015.
30 “Enterprise for all: the relevance of enterprise in education,” UK Government,
www.gov.uk/government/uploads/system/uploads/attachment_data/
fle/338749/EnterpriseforAll-lowres-200614.pdf, accessed June 2015.
31 J. Gurney-Read, J, “Sir Richard Branson: Want to be an entrepreneur? Start a
primary school,” The Telegraph, September 2014.
consecutive years between 2010 and 2012. The UPI courses
aimed to encourage students to explore creativity, innovation
and entrepreneurship in school by raising their awareness and
knowledge about entrepreneurship. During 2010–12, 35 primary
schools participated in the project, with 1,135 students
developing 84 business plans. Based on survey results, UPI
courses had a positive impact on the fexibility, innovation,
process management and creativity of the students.
32
4. Foster these programs through the
secondary/tertiary education system with
a pivot toward vocational education and
industry partnerships (near term)
Education initiatives to foster skills learned in elementary and
primary school years are critical at the secondary and tertiary
level to deepen students’ “entrepreneurial mindset” and convert
this thinking into commercial practice.
Start-up funding for tertiary students (China): In 2011, the
Zhejiang Government in China established a US$5.5 million fund
to support new start-ups by fresh graduates in the province.
The Government provides seed capital in addition to subsidized
loans provided by the Bank of Hangzhou and Hangzhou United
Bank.
33
University graduates operating their own businesses
are exempted from registration, license and administration
fees for the frst three years from the registration date, and
the students can get two-year loans ranging from US$3,164 to
US$7,910.
34
The initiative has helped establish the Hangzhou
College Student Entrepreneur Association and has over 2,180
members taking regular lessons on entrepreneurship from
experienced instructors.
Spotlight on Turkey — a student-centric approach to
entrepreneurship
The Turkey Ministry of National Education developed
“A Lifelong Learning Strategy” paper in 2009, which
highlights entrepreneurship as one of the key competencies.
Entrepreneurship education is recognized as a separate optional
subject, and a student-centered approach is adopted to teach it.
Project work and other assigned non-curricular tasks promote
32 “Entrepreneurship education: a road to success,” European Commission,http://ec.europa.eu/DocsRoom/documents/8565/attachments/1/
translations/en/renditions/native, accessed May 2015.
33 S. Jing, “Headstart for budding business,” China Daily, February 2011.
34 G20 Entrepreneurship Barometer: China Country Report, EY, www.ey.com/
Publication/vwLUAssets/EY-G20-country-report-2013-China/$FILE/EY-G20-
country-report-2013-China.pdf, accessed May 2015.
18 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
student creativity and interaction, with the teachers acting
as a facilitator.
35
From 2008 to 2012, Turkey’s early-stage
entrepreneurship activity doubled (from 6% to 12%), as did
nascent entrepreneurship activity (from 3.2% to 7%).
36
5. Focus on “quality” entrepreneurship and
“quality” employment (medium term)
Governments can use culture as a key driver to support growth
in high-impact entrepreneurs, not “lifestyle” entrepreneurs.
This includes targeted grants, celebration of successes, and
enablement of networks to support knowledge transfer and
risk taking.
Mentorship for the next generation (US): In February
2011, the US Government launched Entrepreneurial Mentor
Corps (EMC), a new program designed to mobilize the current
generation of entrepreneurs to help build and support the next
generation of entrepreneurs. The program will facilitate mentor
matching and provide ongoing support. The frst phase of the
EMC program was a clean-energy sector pilot, which provided
funding to four private accelerators to identify and match
mentors for 100 start-up companies.
37
Mentorship for the next generation (Canada): Futurpreneur
Canada (formerly the Canadian Youth Business Foundation,
or CYBF) has been helping young entrepreneurs launch and
grow successful businesses for nearly two decades. It is the
only national nonproft organization that provides integrated
services to aspiring business owners aged 18–39 by providing
them with pre-launch coaching, business planning support,
requisite fnancing and an ongoing mentoring program. The
program has so far supported 7,800 entrepreneurs, creating
more than 31,000 jobs and generating over C$194 million in
tax revenue.
38
The program recently received a C$14 million
Government of Canada investment to help an estimated 2,700
young entrepreneurs over the next two years.
39
35 “Entrepreneurship education at school in Europe,” European Commission,http://eacea.ec.europa.eu/education/eurydice/documents/thematic_
reports/135EN.pdf, accessed May 2015.
36 Global Entrepreneurship Monitor,http://www.gemconsortium.org , accessed
May 2015.
37 “Entrepreneurial Mentor Corps,” United States Small Business Administration,
www.sba.gov/sites/default/fles/fles/EMC_FactSheet.pdf, accessed May 2015.
38 “What does the future of entrepreneurship look like?” Futurpreneur Canada,
www.futurpreneur.ca/wp-content/uploads/2014/05/BrandBook_EN_web.pdf,
accessed May 2015.
39 “Federal government announces $14m investment in Futurpreneur Canada,”
Futurpreneur Canada, www.futurpreneur.ca/en/press-media/fed-gov-
announcement, accessed May 2015.
6. Establish longitudinal programs to
link culture and education through to
impact (long term)
Entrepreneurial education programs need a sound evidence
base, linking education and culture through to impact,
including innovation and job creation. Initiatives that encourage
knowledge-sharing and community development are also
important to replicate learnings, scale programs and provide
longitudinal data on programs.
Start-up ecosystem development (Brazil): The State
Government of Minas Gerais in Brazil launched Start-ups
and Entrepreneurship Ecosystem Development (SEED), an
accelerator program to foster entrepreneurial culture and
support new and innovative tech ventures. The program,
entitled to US$6.2 million of government funding, offers
benefts to the program participants to share their experiences
and help develop an entrepreneurial community. It has helped
in incubating 73 companies from 12 different countries with
combined revenue of US$10 million at the end of 2014.
40, 41, 42
40 “Seed call for applications,” Impacthub.net, www.impacthub.net/stories/
programs/seed-call-for-applications, accessed May 2015.
41 “Minas Gerais kicks off multimillion-dollar tech startup program,” ZDNet, www.
zdnet.com/article/minas-gerais-kicks-off-multimillion-dollar-tech-startup-
program, accessed May 2015.
42 “How the greatest startup program in Brazil is being killed by politics,”
Medium.com,https://medium.com/startup-down/how-the-greatest-
startup-program-in-brazil-is-being-killed-by-politics-cfce46034027,
accessed May 2015.
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 19
To “make” high-impact entrepreneurship,
governments need to drive a supportive
culture through education
Supporting the growth of high-impact entrepreneurship is
critical to generating gains in income, employment, productivity
and competitiveness gains. At the same time, a positive
entrepreneurship culture is needed to advance the development
and scaling of high-impact frms. For G20 governments,
education is the key conduit for strengthening culture.
Lasting change in education systems, and real change in culture,
takes time. As a result, governments need to make a long-term
commitment to reform their education systems to support
culture and start now to implement new policies. In the near
term, new visas to enable mobility and international networking
initiatives can build bridges across the G20 and drive positive
change in entrepreneurship culture through peer-to-peer, and
experiential, learning. Over the medium term, entrepreneurship
needs to be embedded in formal education systems, from
primary through to tertiary, with industry a crucial partner in the
process. This should be part of a broader economic development
plan focused on “quality” entrepreneurship. In the long term,
measuring culture in education, and linking it through to
impact, will help to defne effective policies and refne initiatives
over time.
Contacts
Rohan Malik
Global Emerging Markets and Deputy Global Leader,
Government & Public Sector
[email protected]
Rebecca Hiscock-Croft
Senior Strategic Analyst,
Government & Public Sector
[email protected]
EY | Assurance | Tax | Transactions | Advisory
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On this brief data regarding classroom to boardroom creating a culture for high impact entrepreneurship.
From classroom
to boardroom
Creating a culture for
high-impact
entrepreneurship
2 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 3
George Atalla
Global Leader,
Government &
Public Sector
Maria Pinelli
Global
Vice Chair,
Strategic
Growth
Markets, EY
Strong culture, strong impact focuses on the role of culture in
driving high-impact entrepreneurship in G20 countries. The
report provides actionable recommendations for governments
and a clear, time-bound path for achieving support for young
entrepreneurs. Our report, released alongside this year’s G20
Young Entrepreneurs’ Alliance (YEA) Summit in Turkey, builds on
our Avoiding a lost generation reports. It drills down on the one
driver that is at once omnipresent, yet diffcult to quantify or
capture, for an entrepreneurial ecosystem:
entrepreneurial culture.
Culture is one of the fve pillars to the EY model of an
entrepreneurial ecosystem, alongside access to funding,
education, coordinated support, regulation and taxation. Our
research on the ecosystem confrms the importance of culture
for supporting high-impact entrepreneurship. For example, in
our G20 Entrepreneurship Barometer, which included survey
information from some 1,500 entrepreneurs, we see that
a supportive culture is associated with access to funding,
mentorship and innovation.
With high youth unemployment persisting in some G20 countries
and with ever-present demands for innovation, sustainability and
social inclusion, governments across the G20 are increasingly
focused on channeling support to high-impact entrepreneurship
among youth. The challenge then for policymakers is to
uncover best-in-class policies to foster real improvement in
entrepreneurial culture in their respective economies.
In our view, education policy is a major channel for governments
to drive changes to entrepreneurial culture. This is the primary
recommendation to G20 governments in our report. It builds
on our agenda of policy recommendations in Avoiding a lost
generation, Part 2, and in the G20 YEA communique for
2015, where this was one of the fnal recommendations. In
pivoting education to focus on the tools and skills necessary for
entrepreneurship, policies can support a culture supportive of
entrepreneurship through a youth’s lifetime.
At EY, we frmly believe the solution lies in the “Power of Three,”
where government, business and entrepreneurs join forces to
create new opportunities for young entrepreneurs and drive
lasting change. Any education policy initiative focused on culture
needs to involve industry and entrepreneurs. We propose
some action points here for governments, on experiential and
vocational education, mentorship, and mobility. These initiatives
can provide comprehensive learning opportunities for young
entrepreneurs and really drive home a supportive culture
through experience.
Change to education and culture will take time. This is all
the more reason to start today, working across government,
enterprise and entrepreneurs to drive investment in young
entrepreneurs and create a shift in culture.
The G20 YEA is a global
network of young
entrepreneurs and the
organizations that support
them, representing
over 500,000 young
entrepreneurs across G20
countries and the European
Union. The G20 YEA members have already created an
estimated 10 million jobs.
It is critical to provide a supportive culture for young people to
convert their brilliant ideas into projects and action, and make
important contributions to their economies. An entrepreneur is
someone who sees the world differently from others. They see
opportunity in depressed times, they have far-reaching vision
and they believe in their ideas when nobody else does. They
often work harder than anyone will ever know, and they are often
alone, all of which can create immense self-doubt. Creating a
supportive culture is key.
In 2008, Turkey had a 6% entrepreneurship rate. This increased
to 8.6% in 2010. It is an improvement, but still a very low rate,
considering that 52% of Turkish people are below the age of 29.
Overall, the concept of entrepreneurship is still new in Turkey.
Taking a government job is seen as a safer, steadier way to start
a career. Educating young people and providing role models for
them is key to increasing the entrepreneurship rate.
Government support is also crucial to encouraging
entrepreneurship. Tax systems need to support
entrepreneurship. Governments also have a role to play in
encouraging more angel investors and seed funds. Accessing
capital is one of the hardest problems to transcend. According
to a TUGIAD survey, in Turkey, 55% of the entrepreneurs have
benefted from government support programs.
All of the things that I mentioned are outcomes of a strong
entrepreneurship culture. If a culture of entrepreneurship can be
created, education, access to funding, coordinated support and
good regulation have the strong foundation they need.
The G20 YEA is very pleased to include the ideas presented
in this report in the 2015 G20 Leaders’ declaration, B20, T20
and Y20 recommendations. We look forward to supporting the
Turkish Government in the improvement of entrepreneurship
culture with a focus on high-impact entrepreneurship.
How can we create a culture for
high-impact entrepreneurship?
Rahmi Çuhac?
Chairman, G20
YEA Summit,
?stanbul 2015
and President
of TUGIAD
4 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
Strong culture, strong impact: policy to drive
high-impact entrepreneurship
In a global economic environment characterized by
disproportionally high youth unemployment, governments are
searching for sustainable answers to this major labor market
and social challenge. Any solutions with lasting impact need
to be self-sustaining. Policymakers need to boost the business
ecosystems in their economies to effectively stimulate economic
growth and employment over the longer term. Entrepreneurship
is a signifcant catalyst for job creation and innovation. “High
impact” entrepreneurial companies bring disproportionately
large economic benefts, refected in their contribution to job
creation, innovation or customer benefts, wealth creation, and
societal impact.
1
From a policy perspective, fostering the establishment and
growth of high-impact entrepreneurship is critical to generating
gains in income, employment, productivity and competitiveness.
There are well-established, broad-based policy prescriptions
for stimulating entrepreneurship — for example, increasing
access to capital. However, to really drive impact through
successful and scalable entrepreneurship, a less tangible
but omnipresent factor needs to be addressed: culture. A
positive entrepreneurship culture is crucial to advancing the
development and scaling of high-impact frms. Of course, culture
is inextricably linked to education, and governments can follow
clear, actionable strategies to promote culture and high-impact
entrepreneurship.
High-impact entrepreneurship is
a policy priority
For policymakers, stimulating high-impact entrepreneurship
is a priority as it promotes job creation, innovation, wealth
creation and positive societal impact.
2
High-impact frms are
estimated to drive the lion’s share of job creation among start-up
frms, with a recent global study showing that the top 1% of
frms contribute 44% of total revenue and 40% of total jobs.
3
Entrepreneurship can also provide an important link between
R&D and economic growth through its role in knowledge transfer
and commercialization. “Entrepreneurial capital”
4
can provide
incumbent companies with innovation and creative thinking.
Furthermore, high-impact entrepreneurs often make a difference
to their society beyond their immediate business, with new
innovation or business activity driving wider positive benefts,
1 “The Bold Ones: High-Impact Entrepreneurs Who Transform Industries,” EY and
the World Economic Forum, 2014.
2 Ibid.
3 “Report: Top 1% of Entrepreneurial Firms Responsible for Largest Share of Job
Creation among Start-ups,” World Economic Forum, www.weforum.org/news/
report-top-1-entrepreneurial-frms-responsible-largest-share-job-creation-
among-start-ups, accessed July 2015.
4 K. Kukoc and D. Regan, “Measuring Entrepreneurship,” Australian Treasury, 2008.
in turn indirectly expanding wealth, opportunity and economic
empowerment for those in their community.
5
“High-impact” policy solutions are systemic
Having set a clear objective of high-impact entrepreneurship,
governments are continually focused on effective policy
solutions. New interventions cannot be considered in a vacuum.
Just as an entrepreneur exists in a network of peers, mentors,
investors, competitors and policymakers, entrepreneurship
policies are part of an ecosystem. It is generally accepted that
there are fve major pillars to this ecosystem: access to funding,
education, coordinated support, regulation and taxation,
and culture.
6
The entrepreneurial development framework: fve pillars that
foster entrepreneurship
7
Access to funding
Seed
Start-up
Expansion
Growth capital
Tax and regulation
Taxation incentives
Ease of starting a business
Business-friendly
legislation/policies
Education and training
Pre-university education
University education
Entrepreneurship-speci?c
training
Informal education/lifelong
learning
Entrepreneurship culture
Tolerance of risk and failure
Preference for self-employment
Innovation and research culture
Celebration of self-made wealth
Coordinated support
Mentors, advisors,
networks and clubs
Business incubators,
clusters, parks,
business centers
Each pillar is equally important in building a stable and
sustainable ecosystem.
8
Parts of the ecosystem are tightly
connected. Policy initiatives can drive effects throughout he
ecosystem. As a result, any support needs to be holistic, with
markets, infrastructure and regulatory initiatives working
in tandem with other critical factors, such as culture and
mentorship, to drive growth in entrepreneurship.
5 “The Bold Ones: High-Impact Entrepreneurs Who Transform Industries,” EY and
the World Economic Forum, 2014.
6 Innovation and globalization are two additional enablers that are expected to
continue to grow in importance in terms of their impact on the entrepreneurship
environment. While not captured as stand-alone pillars in this model, these
drivers are assumed to be integrated across activities in all of the fve pillars
listed here.
7 The Power of Three: together, governments, entrepreneurs and corporations
can spur growth across the G20, EY, 2014.
8 Equal weight in the EY Entrepreneurship Barometer Model (2013).
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 5
The “Power of Three” for high-impact
entrepreneurship
No one can go it alone when it comes to high-impact
entrepreneurship. The “Power of Three” is critical for effecting
positive change. With all elements of the ecosystem closely
interlinked, fostering an effective entrepreneurial ecosystem is
clearly a joint effort between government, entrepreneurs and
enterprise. Working together, these three actors can support
a thriving entrepreneurial ecosystem, providing different
strengths and capabilities to drive results.
“ Canada provides a truly unique entrepreneurial ecosystem
to build a company. With access to some of the brightest
minds from top globally ranked universities and some of the
best venture capital frms in the world, Canada has started to
shape and impact the future of the global economy. Without
the incredible support of revolutionary education programs
like The Next 36 and high-impact programs like FounderFuel
and Futurpreneur Canada, my business wouldn’t be where
it is today.”
Mike Schmidt
SFX Entertainment
The Power of Three is central to an effective
entrepreneurial ecosystem
9
Entrepreneurs
Government Corporations
Investors
Regulation
Media
School/education
Culture
Organizations
supporting
entrepreneurship
9 EY Barometer report.
The EY G20 Entrepreneurship Barometer
The EY G20 Entrepreneurship Barometer is a comprehensive
study on the entrepreneurial ecosystem in G20 countries.
The report provides quantitative and qualitative assessment
of entrepreneurial ecosystems across the G20. It is designed
to help G20 countries benchmark their performance and
progress on the vital issue of supporting entrepreneurs.
It enables each G20 nation to identify current strengths
in its entrepreneurial environment, as well as the main
opportunities for further development.
The report includes assessment and best-practice
recommendations across the fve pillars of the
entrepreneurial ecosystem: access to funding,
entrepreneurship culture, tax and regulation, education and
training, and coordinated support. It includes a model for
scoring countries across the fve pillars, taking input from:
• A survey of more than 1,500 leading entrepreneurs across
the G20 countries
• Business environment indicators directly infuencing the
entrepreneurship ecosystem in each country
Barometer scores are corroborated with unique qualitative
insights, including:
• Exclusive insights from more than 250 entrepreneurs,
independent academics and experts, and EY partners
across the G20 countries
• An analysis of more than 200 government leading
practices from across the G20 countries
As a result, the Barometer provides a powerful framework
to enable governments, entrepreneurs and businesses to
assess their environment, identify opportunities and improve
entrepreneurial ecosystems in the future.
6 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
Culture can supercharge high-impact
entrepreneurship
The development of entrepreneurship culture stands out as one
pillar in the ecosystem. This has enormous untapped potential to
strengthen support for entrepreneurial activity.
Unlike tax policies, government grants or education reform,
the explicit levers for creating a positive “entrepreneurship
culture” are not well-defned. As a result, it presents a signifcant
opportunity for policymakers. Entrepreneurship culture is
intertwined with entrepreneurial attitudes
10
and education,
and the initial challenge is to truly understand its role and
signifcance in entrepreneurial activity in order to design
impactful policy initiatives that help support it.
With the right support, governments can help individuals
adopt an “entrepreneurial mindset” in which they strive to be
job creators rather than job seekers and drive entrepreneurial
activity higher. The presence of strong role models, high status
of entrepreneurs, and social tolerance of business risk and
failure are important in spurring a supportive culture.
11
“ Entrepreneurial culture is not just about starting a start-up.
It is about culture, mindset, values, principles, etc. Now this
is needed. I can imagine Indonesia to be a country that will
really fourish and be one of the largest world economies if
this culture is instilled in every worker in the country as well.
But it has to start from the leaders of the country — from
the government.”
Muhammad Md Rahim
qiscus Pte Ltd./PT Global Komunikasi Teknologi Digital,
Singapore and Malaysia
10 Per the construction of the Global Entrepreneurship Development Institute
(GEDI) Index, this is one of the sub-pillars for entrepreneurial attitudes.
11 P. Vogel, “The employment outlook for youth: building entrepreneurial
ecosystems as a way forward,” World Entrepreneurship Forum, www.world-
entrepreneurship-forum.com/content/download/9326/170210/version/2/
fle/Ecosystems_Paper_PeterVogel.pdf, accessed May 2015.
G20 entrepreneurs speak: supportive culture
is critical to their growth
Entrepreneurs confrm anecdotal feedback that culture matters
to their decision-making and activities. This is also clear in the
survey results in the EY G20 Entrepreneurship Barometer,
12
which show a signifcant relationship between culture and other
dimensions of the ecosystem and provides more color on the link
between culture and success. For example, there is an important
association between entrepreneurship culture and access to
funding in the Barometer survey. Respondents with a reportedly
weak culture are almost four times as likely to report problems
accessing capital as those with a very supportive culture. Those
entrepreneurs in a country with weak culture were more than
1.5 times more likely to suggest that the ease of starting a
business had become more diffcult in recent years, compared to
those with a highly supportive culture. Also, those entrepreneurs
in weak cultures were more than twice as likely to report
deterioration in access to mentorship in recent years, relative to
those in a supportive culture.
EY G20 Entrepreneurship Barometer results suggest
an important relationship between culture and other
entrepreneurship drivers
0 1 2 3 4
Access to funding
Starting a business
Access to
mentorship
Reported relative
dif?culty for those
with a weak culture
Odds ratio
12 G20 Entrepreneurship Barometer, EY, 2013.
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 7
The importance of entrepreneurship culture by the numbers: insight from the EY G20
Entrepreneurship Barometer
The EY G20 Entrepreneurship Barometer scores show an association between culture and overall ecosystem strength.
The G20 Barometer overall country rankings …
Quartile 1 Quartile 2 Quartile 3 Quartile 4
a n i t n e g r A l i z a r B U E a i l a r t s u A
a i d n I a n i h C e c n a r F a d a n a C
South Korea Germany Mexico Indonesia
United Kingdom Japan Russia Italy
United States South Africa Saudi Arabia Turkey
Note: Countries
are listed in
alphabetical order
per quartile.
Overall country rankings are closely aligned with rankings on culture. For those top-performing Quartile 1 countries in the
G20 Entrepreneurship Barometer, entrepreneurship culture is one pillar, alongside access to funding, where the overall
top-performers are also top-ranked. In fact, while the index is equally weighted across the fve pillars, the relatively close
association between the overall score and culture score for the Quartile 1 countries highlights the importance of culture in
reinforcing the total performance of the entrepreneurial ecosystem.
Top performers in the Barometer are also top performers on culture
Rankings and scores — pillars
Ranking Access to
funding
Score Entrepreneurship
culture
Score Tax and
regulation
Score Education and
training
Score Coordinated
support
Score
1 United States 7.12 United States 7.67 Saudi Arabia 6.40 France 6.58 Russia 6.23
2 United Kingdom 6.86 South Korea 7.53 Canada 6.34 Australia 6.53 Mexico 5.89
3 China 6.75 Canada 7.45 South Korea 6.34 United States 6.50 Brazil 5.87
4 Canada 6.62 Japan 7.28 United Kingdom 6.19 South Korea 6.40 Indonesia 5.84
5 Australia 6.48 Australia 7.18 South Africa 6.10 EU 6.25 India 5.76
8 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
The EY G20 Entrepreneurship Barometer also shows an important link between entrepreneurship culture and innovation, which is
an important contributor to high-impact entrepreneurship.
13
Comparing the survey results for those entrepreneurs who identify a
supportive
14
vs. an unsupportive
15
environment in their home country is telling. Those backed by a supportive culture report more
positive sentiment on innovation, by a clear margin. In fact, these frms see more opportunity in innovation and report a greater
willingness to collaborate with external partners on innovation.
“Innovative companies see opportunity where others see
risk” (yes responses)
79%
80%
81%
82%
83%
84%
85%
86%
All Supportive
culture
Unsupportive
culture
“We collaborate externally to drive innovation”
(yes responses)
All Supportive
culture
Unsupportive
culture
55%
60%
65%
70%
75%
80%
The two groups also reveal important differences in how innovation is integrated in internal business structures and processes.
Those entrepreneurs in a supportive culture show stronger performance. For example, more than 75% of entrepreneurs surveyed in
a country with a supportive culture reported a formalized approach to innovation in their company. This compares to 66% of frms
where the culture is reportedly unsupportive.
“We currently have a strategy for innovation in place within
the company” (yes responses)
All Supportive
culture
Unsupportive
culture
50%
55%
60%
65%
70%
75%
“We have a formalized approach where everyone contributes
to innovation” (yes responses)
All Supportive
culture
Unsupportive
culture
60%
65%
70%
75%
80%
13 “The Bold Ones: High-Impact Entrepreneurs Who Transform Industries,” EY and the World Economic Forum, 2014.
14 “Supportive culture” is defned here as those survey respondents who indicate that “business failure in my country is perceived as a learning opportunity.”
15 “Unsupportive culture” is defned here as those survey respondents who indicate that “business failure in my country is perceived as a career failure.”
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 9
EY Entrepreneur Of The Year™ Culture Case
Study: Regeneron
The July-December 2014 edition of Exceptional magazine
(Americas) profled Regeneron Pharmaceuticals, a US-based
biotechnology company. Its co-founders Leonard Schleifer
and George Yancopoulos indicated that the company
operates differently than other biotech giants due to its
ideas-driven culture.
The G20 Barometer survey results corroborate with other
studies that highlight the unequivocal importance of culture. For
example, Global Entrepreneurship Monitor (GEM) data shows a
higher presence of nascent and new entrepreneurs in countries
with a supportive entrepreneurship culture. At the same time,
the GEM survey results also refect lower entrepreneurship
activity levels in those countries where fear of failure is
more elevated.
“ The entrepreneurial culture is the most important thing to
consider when starting a new company or initiatives. This
culture must drive the creativity and represents the company’s
mission. The culture stems from the founder, but it must be well
received by the whole team. The best way to do is to ask them:
what do they care about? What do they believe? What are their
expectations joining on board? The founder must encompass
them in his mission and values, so the answers will be under the
company’s mission. In addition, the culture also leads all people
not only to know but also to believe what the most important
value is for the company in the future.”
William Suryawan
Del Mare Snack, Indonesia
Global survey data highlights the association between entrepreneurial culture and entrepreneurship activity
0
10
20
30
40
50
60
70
80
90
100
0 10 20 30 40
Entrepreneurship a desirable career choice
Total entrepreneurial activity
0 10 20 30 40
Fear of failure
Total entrepreneurial activity
0
10
20
30
40
50
60
70
Source: Global Entrepreneurship Monitor Database, 2015
“ Regeneron has a strict commitment to removing all forms of bureaucracy. Every employee is encouraged to challenge other’s ideas and
carve out their own path. The sense of collaboration is so strong that when an innovation is celebrated, the team often has a hard time
pinpointing the originator. There is only so much leadership that can come from the top. What we do is value and incentivize innovation.”
Leonard Schleifer
CEO, Regeneron
Total entrepreneurial
activity is the percentage
of those aged 18–64
who are either a
nascent entrepreneur
or owner-manager of a
new business.
“Entrepreneurship is a
desirable career choice”
refects the percentage
of those aged 18–64 who
agree with the statement
that, in their country, most
people consider starting
a business as a desirable
career choice.
“Fear of failure” refects
the percentage of those
aged 18–64 with positive
perceived opportunities
who indicate that fear of
failure would prevent them
from setting up a business.
10 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
National studies also confrm the strong connection, including
the TUG?AD Survey in Turkey (2014). The survey helps assess
innovative small and medium-sized enterprises (SMEs) and
entrepreneurial frms in the country. It reveals a clear link
between an innovative business culture and government
support programs aimed to scale up the innovation activities.
Notably, 55% of the respondents have been part of government-
supported R&D/innovation programs. At the same time, 40%
of the SMEs state that what makes these SMEs different is
their success in launching new products to the Turkish market.
These two fndings in the TUG?AD Survey suggest that in Turkey,
innovation culture is directly affected by the Government, and
the incentives programs run by the Government are the main
tools in setting the innovation culture.
For governments, there is a clear takeaway that effective policy
actions to strengthen to entrepreneurship culture are critical to
boosting the entrepreneurial ecosystem and supporting high-
impact entrepreneurship.
Supportive entrepreneurship culture is also a
critical catalyst for inclusive, and sustainable,
economic growth
Culture also has an important social impact in strengthening the
entrepreneurial ecosystem. Creating “decent work” for youth is an
important objective for any job creation program. The connection
between good jobs and social cohesion is clear, with uprisings in
some economies in recent years highlighting the importance of
employment opportunities that enable youth to reach their full
potential.
16
IFC research also fnds that quality private sector jobs
help contribute to the creation of global public benefts such as
respect for rights, increased levels of trust, human capital, gender
equality, poverty reduction and peace.
17
The meaning of “good” or “decent” jobs varies depending the
economy or level of development of a country. Whatever the
context, the promotion of entrepreneurship culture is central
to the creation of these opportunities. Entrepreneurs can gain
satisfaction from developing an independent business, creating
value for customers and generating their own wealth.
18
The EY G20 Entrepreneurship Barometer shows that a
supportive culture is one that provides a level playing feld for all
entrepreneurs. The culture should be inclusive to young people —
for example, in accessing fnance. In those countries where the
culture is supportive, young entrepreneurs are relatively equal to
entrepreneurs overall in terms of access to funding. The spread in
16 “Quality of Jobs: IFC Jobs Study 2013,” IFC, www.ifc.org/wps/wcm/
connect/1c91a5804e6f1b89aceeacfce4951bf6/IFC_FULL+JOB+REPORT_
REV2_JYC.pdf?MOD=AJPERES, accessed June 2015.
17 Ibid.
18 M. Hitt, et al., “Strategic Entrepreneurship: Creating Value for Individuals,
Organizations and Society,” Texas A&M University, 2012.
response between those young entrepreneurs reporting diffculty
in accessing funding, and entrepreneurs overall, is relatively
narrow in those countries with a supportive culture vs. where the
culture is a hindrance.
Spotlight: Entrepreneurship culture in Turkey
In recent years, Turkey has experienced strong economic
growth and is increasingly interconnected with international
markets. As result, the Turkish entrepreneurial culture has
made big advances, though there is still signifcant room
for growth.
Business life in Turkey used to be dominated by private
holding companies and state economic enterprises.
Paternalistic cultural values appear to be dominant among
Turkish managers (Aycan et al., 2001; Pasa et al., 2001).
Professionalism and rationalism orientations, together with
a cultural emphasis on power, hierarchy and relationships,
for instance, can be seen in most Turkish frms (Dan??man &
Özgen, 2008).
The state has been an important institution in shaping the
business structure (Kabasakal & Bodur, 1998). Turkish
private companies remained highly dependent on the state
for fnancial incentives, and the state often intervenes with
frequent and unpredictable policy changes, which introduce
uncertainties in business life (Bugra, 1990). Yet, in the
last decade, Turkey has widely reformed its institutions.
This effort led to a strong, fast-improving entrepreneurial
environment. In July 2011, based on 1,001 interviews of
G20 entrepreneurs, Turkish respondents described their
country as the most business friendly of the G20 (G20
Entrepreneurship Barometer, 2011).
While this entrepreneurship climate is increasingly favorable,
new business density — a measure of new businesses
registered per 1,000 people aged 15–64 — is lower than the
average for the rapid-growth markets in the G20; this could
be a result of traditional conglomerates, rather than small
enterprises, having driven much of the growth in economic
activity in Turkey (G20 Entrepreneurship Barometer, 2011).
However, the entrepreneurial culture in Turkey has
signifcantly improved, and the country reportedly has
many more opportunities for education and training in
entrepreneurship than it did fve years ago. In the end, 80%
of the entrepreneurs interviewed indicated that Turkish
culture encourages business, and 90% are convinced that
job creation by entrepreneurs greatly enhances the culture
(G20 Entrepreneurship Barometer, 2011). Other major
indicators of the entrepreneurial ecosystem are also on a
trajectory of improvement. Entrepreneurs do still fnd it
diffcult to access funding in Turkey, yet this has improved
markedly in recent years. The regulatory and taxation
environment has also become more favorable.
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 11
“Accessing funding is diffcult” (yes responses)
All Supportive
culture
Unsupportive
culture
0
20%
40%
60%
80%
100%
All entrepreneurs Young entrepreneurs
Relative diffculty for young entrepreneurs to access funding
All Supportive
culture
Unsupportive
culture
0
1%
2%
3%
4%
EY best-practice culture case study: Network
for Teaching Entrepreneurship (NFTE)
In the January-June 2014 edition of Exceptional magazine
(EMEIA), Amy Rosen, CEO of the US-based NFTE, talked about
how these programs inspire young people from low-income
communities to stay in schools, recognize business opportunities
and plan for a successful future.
“I have the privilege of meeting more and more of our program
alumni every day. There is a great young man named Rodney
Walker who is now at Yale Graduate School. When he was 5, his
parents were arrested on drug charges, and he spent the next
decade in foster homes until he ran away and began living on
the streets.
“So how did he go from there to here? He walked into an NFTE
classroom after coming into school for food. Through this class,
he started a video production business. He is a powerful example
of what can be achieved.”
Effective policy needs a deep understanding of cultural needs,
particularly education
For governments, the case for policy initiatives to support
entrepreneurial culture, from economic and social standpoints, is
clear. Of course, linking inputs to outcomes is a major challenge,
particularly in relation to policies aimed at creating a supportive
culture. The design and delivery of effective policy rests on a
deep understanding of what will really impact the culture in a
given economy. This is where education comes to the forefront.
The EY G20 Entrepreneurship Barometer Survey asked
respondents to identify initiatives that would most improve
students’ perceptions of entrepreneurship as a career path.
19
The results highlighted the signifcant interrelationship between
culture and education. Entrepreneurs saw education as their
number one priority in terms of key initiatives that could support
the long-term growth of entrepreneurship in their economies. In
total, more than one-third of respondents identifed educators,
teaming, and mentoring programs and industry-specifc training
as the top initiatives.
“ If there is one thing that needs to be done, we need to start
early. This culture needs to be encouraged and facilitated right
from school days. Students needs to be encouraged to think,
read, share ideas, debate, research, talk to seniors, talk to
successful people, expose them to things beyond the country to
open their minds to new ideas.”
Muhammad Md Rahim
qiscus Pte Ltd./PT Global Komunikasi Teknologi Digital,
Singapore and Malaysia
19 Indicator taken here as a proxy for entrepreneurship culture, in line with
GEM data.
12 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
What would most improve students’ perceptions on entrepreneurship as a career path?
0% 10% 20% 30% 40%
Coaching programs for entrepreneurs
Government programs supporting
entrepreneurship
Promotion of success stories to students
Speci?c programs at
universities/business schools
Others
What are the top initiatives and organizations that could improve long-term growth in entrepreneurship/entrepreneurs in
your country?
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Business incubators
Educators
Entrepreneur clubs and associations
Teaming/mentor programs
Government start-up/other programs
University incubators
Venture capital associations
Industry-speci?c training programs
Entrepreneurial workshops/support
meetings
Small-business administrations
Chambers of commerce
Corporate and nongovernmental
advisors
Other, please specify
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 13
To grow high-impact entrepreneurship, culture
policies should focus on learning
To grow and sustain high-impact entrepreneurship, individuals,
government institutions and businesses all have an important
role to play in fostering a supportive entrepreneurial culture.
It is clear from the G20 Entrepreneurship Barometer survey
that entrepreneurs welcome a role for government, particularly
in education, to provide an institutional framework that can
“supercharge” the entrepreneurial ecosystem and drive
sustainable gains.
More generally, the link between culture and education highlights that economies with stronger entrepreneurial cultures are more
tolerant and understanding of business failure and do not perceive this as a barrier to entry, but as an opportunity to learn. The
G20 Barometer shows that business failure is perceived considerably more constructively among those entrepreneurs who have
received entrepreneurship education than among those who have not, per the fgures below. This suggests that entrepreneurial
initiatives taught at school can reinforce risk-taking and a disposition toward entrepreneurial activity.
For those entrepreneurs involved in, or who have
participated in, entrepreneurship education: How is business
failure perceived?
0% 10% 20% 30%
A career
failure
A learning
opportunity
For those entrepreneurs who have not received
entrepreneurship education: How is business failure
perceived?
A career
failure
A learning
opportunity
18% 20% 22% 24% 26%
Our key recommendation on culture to G20
governments is to increasingly align the
learning ecosystem with workforce needs
This builds on our agenda of policy recommendations in our
report on youth unemployment and entrepreneurship, Avoiding
a lost generation, Part 2, and in the G20 YEA communique
for 2015, where this was one of the fnal recommendations.
In focusing education policy on relevant tools for
entrepreneurship, governments can foster a culture supportive
of entrepreneurship, from elementary stages of learning through
to adulthood.
Culture is a very important part of the entrepreneurial
environment. To encourage more entrepreneurs, a country
needs a set of beliefs that make entrepreneurship a valid and
respected career choice. To develop an entrepreneurship
culture, you have to create an infrastructure and for that,
you have to start from the basics. At this point, the right
place to start is education and lifelong training.
Ba?ak ?lisulu
Secretary General, TUGIAD
Sherpa, G20 YEA Turkey
[email protected]
While no “quick fx” for culture, education
can support culture in several stages
A new paradigm for education, and the cultural shift it
can foster, will not happen overnight — in fact, it will likely
manifest over a generation, if not more. For governments,
this means that a long-term commitment to supporting
entrepreneurship through education is crucial. New policy
can be enacted in stages, with some near-term initiatives
possible to set the course for deepening changes in
entrepreneurship culture, through education, over time.
We see new policy to support culture, through the education
system, as working along a continuum. Governments
can generate some “quick wins” now, and also start to
put in place the foundations for a transformational shift
in entrepreneurship culture over the long term. To get
this change process moving, we highlight six specifc
recommendations for governments to drive stronger
entrepreneurship culture through education in the coming
months, years and even decades.
Rohan Malik
Global Emerging Markets and Deputy Global
Leader, Government & Public Sector
[email protected]
14 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
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1
2
3
4
5
6
Create a G20 multilateral
entrepreneurs start-up visa
Encourage
international networking
Start teaching
entrepreneurship early
Focus on “quality”
entrepreneurship and
“quality” employment
Establish longitudinal
programs to link culture and
education through to impact
Foster these programs through
the secondary/tertiary education
system with a pivot toward
vocational education and
industry partnerships
Now
Near term
Medium term
Long term
Six specifc recommendations
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 15
16 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
1. Create a G20 multilateral entrepreneurs
start-up visa (now)
Multilateral visas, or regional visa programs, are crucial to
improve labor mobility, conduct business internationally, and
transfer positive entrepreneurial culture and norms throughout
the G20.
Entrepreneur visas (UK): The UK Government provides three
types of visas for budding entrepreneurs: Tier 1 (Entrepreneur)
visa is for eligible applicants who want to set up or run a business
in the UK, with access to at least £50,000 in investment funds.
20
Tier 1 (Graduate Entrepreneur) visa is applicable for eligible
graduates who have been offcially endorsed as having a genuine
and credible business idea.
21
Lastly, a Standard Visitor visa is
issued to people interested in getting start-up funding or taking
over, joining or running a business in the UK.
22
During 2008–13,
the number of Tier 1 visas issued jumped from 27 to 1,171.
23
Start-up visa (Canada): The Canadian Government launched
a Start-Up Visa Program for immigrant entrepreneurs on
1 April 2013. The fve-year pilot program is the frst of its kind in
the world, linking innovative foreign entrepreneurs who want to
launch a business in Canada with experienced Canadian private
sector frms.
24
Foreign entrepreneurs (or an entrepreneurial
team of up to fve individuals) are considered for the program
if they have a commitment (1) from a designated business
incubator, (2) of at least C$75,000 from a designated angel
investor group or (3) of at least C$200,000 from a designated
venture capital fund. The entrepreneurial team and the investing
entity are required to have an equity stake in the business of
over 50%, and each individual member of the entrepreneurial
team is required to have at least a 10% equity stake. Applications
to the Start-Up Visa Program have been increasing, with 16
foreign entrepreneurs having received permanent residence
through the program, and dozens more are currently in the
process.
25
The frst recipients experienced success: three
20 “Tier 1 (entrepreneur) visa,” UK Government, www.gov.uk/tier-1-entrepreneur,
accessed May 2015.
21 “Tier 1 (graduate entrepreneur) visa,” UK Government, www.gov.uk/tier-1-
graduate-entrepreneur-visa, accessed May 2015.
22 “Tier 1 (standard visitor) visa,” UK Government,https://www.gov.uk/standard-
visitor-visa, accessed May 2015.
23 “Migration statistics,” UK Government,https://www.gov.uk/government/
collections/migration-statistics, accessed May 2015.
24 “Canada open to business for start-up entrepreneurs,” Government of Canada,http://news.gc.ca/web/article-en.do?nid=833229, accessed May 2015.
25 “Startup visa,” Government of Canada, www.cic.gc.ca/english/immigrate/
business/start-up, accessed June 2015.
months after launching their technology company that enables
voice conversations on social media, they were acquired by
Hootsuite Media Inc. for an undisclosed price.
26
2. Encourage international networking (now)
New and young entrepreneurs need the opportunity to
participate in international networking and collaboration with
other entrepreneurs to exchange knowledge, mentor each other
and transmit entrepreneurship culture. Young entrepreneurs
need to be exposed to international markets, through trade
missions, to drive their commercial education, network and also
support cultural exchange. An exchange program, and access to
tailored trade missions, would be powerful initiatives.
Student mobility programs (EU): The Erasmus for Young
Entrepreneurs program, initiated by the European Union in
2009, aims to help new entrepreneurs acquire relevant skills
for managing an SME by spending time in another European
Union country.. As of May 2015, more than 3000 exchanges
have taken place, involving more than 6,000 entrepreneurs. The
program aims to achieve 10,000 exchanges by 2020.
27
Targeted trade missions (France): France is undergoing a start-
up renaissance driven by a new generation of entrepreneurs,
investors, engineers, designers and other talented people. It is a
new Start-up Republic, home to vibrant tech hubs and a hotbed
of talent, flled with a strong entrepreneurial culture. The name
of this movement is “La French Tech,” a banner shared by French
start-ups and the French Government, which supports them.
Launched in 2013, the €200 million initiative promotes French
start-ups under a single brand, both in France and abroad. It
also offers mentoring, funding, recruitment advice and other
resources to ensure the ecosystem has the right tools to grow.
At CES 2015, France was the best-represented nation in Europe,
with 120 exhibitors from a wide range of sectors.
Targeted trade missions (Canada): The Canadian Trade
Commissioner Services offers the Business Women in
International Trade (BWIT) Program. BWIT offers products
to assist export-ready Canadian women-owned businesses
to expand their enterprises into international markets. The
Canadian Government facilitated the Canadian Business Women
Trade Mission to Brazil during 17–20 May 2015. It aimed to
increase the profle of Canadian women and help them network
26 B. Bouw, “Visa program opens doors to overseas talent,” The Globe and Mail,
October 2014.
27 “Erasmus for young entrepreneurs,” European Commission,https://ec.europa.
eu/easme/sites/easme-site/fles/info_day_presentation_eye_2015.pdf,
accessed June 2015.
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 17
with the local business community in Sao Paulo, Brazil. The focus
of this trade mission was key sectors, including agriculture and
agri-food products, education, information and communications
technology (ICT), and life sciences. During the visit, over 50
business-to-business (B2B) meetings were organized with
Brazilian companies and organizations for the Canadian
participants. The networking reception attracted more than 75
Brazilian contacts to meet with the Canadian delegation.
28
At
least one negotiation is underway for a Canadian business to
expand into Brazil.
3. Start teaching entrepreneurship
early (near term)
Governments need to support entrepreneurship education from
the elementary school level to engender an “entrepreneurial
mindset” and expand entrepreneurial culture. This comes
through experiential learning and entrepreneurship training
in schools, as well as extracurricular programs. An important
complement will also be informal learning opportunities for
youth, including workshops, other experiential learning and
online tools.
“The Fiver Challenge” (UK): The UK Government is supporting
“The Fiver Challenge,” where thousands of school pupils
aged 5–11 are given £5 to set up their own mini-business and
encouraged to make a proft while engaging with the local
community.
29
The scheme, launched in 2014, recorded over
30,000 registrations from 500+ schools, far exceeding its initial
target of 20,000 registrations by mid-June. The plan is to double
this program by next year.
30, 31
Entrepreneurship studies in primary schools (Slovenia):
The Slovenian Government funded and implemented a pilot
extracurricular course, called UPI (Ustvarjalnost, Podjetnost,
Inovativnost), in primary schools to be held over two
28 “Canadian Business Women: Trade Mission to Brazil,” Foreign Affairs, Trade
and Development Canada, www.international.gc.ca/commerce/visit-visite/
women_brazil-femmes_bresil_2015.aspx?lang=eng, accessed June 2015;
“Harper Government creating export opportunities for Canadian business
women,” PR Newswire, www.kusi.com/story/29115545/harper-government-
creating-export-opportunities-for-canadian-business-women-labour-and-
status-of-women-minister-kellie-leitch-concludes-frst-ever, 20 May 2015.
29 “The Fiver Challenge,” UK Government, www.gov.uk/government/
news/the-fver-challenge-pupils-to-start-own-business-with-a-5-loan,
accessed June 2015.
30 “Enterprise for all: the relevance of enterprise in education,” UK Government,
www.gov.uk/government/uploads/system/uploads/attachment_data/
fle/338749/EnterpriseforAll-lowres-200614.pdf, accessed June 2015.
31 J. Gurney-Read, J, “Sir Richard Branson: Want to be an entrepreneur? Start a
primary school,” The Telegraph, September 2014.
consecutive years between 2010 and 2012. The UPI courses
aimed to encourage students to explore creativity, innovation
and entrepreneurship in school by raising their awareness and
knowledge about entrepreneurship. During 2010–12, 35 primary
schools participated in the project, with 1,135 students
developing 84 business plans. Based on survey results, UPI
courses had a positive impact on the fexibility, innovation,
process management and creativity of the students.
32
4. Foster these programs through the
secondary/tertiary education system with
a pivot toward vocational education and
industry partnerships (near term)
Education initiatives to foster skills learned in elementary and
primary school years are critical at the secondary and tertiary
level to deepen students’ “entrepreneurial mindset” and convert
this thinking into commercial practice.
Start-up funding for tertiary students (China): In 2011, the
Zhejiang Government in China established a US$5.5 million fund
to support new start-ups by fresh graduates in the province.
The Government provides seed capital in addition to subsidized
loans provided by the Bank of Hangzhou and Hangzhou United
Bank.
33
University graduates operating their own businesses
are exempted from registration, license and administration
fees for the frst three years from the registration date, and
the students can get two-year loans ranging from US$3,164 to
US$7,910.
34
The initiative has helped establish the Hangzhou
College Student Entrepreneur Association and has over 2,180
members taking regular lessons on entrepreneurship from
experienced instructors.
Spotlight on Turkey — a student-centric approach to
entrepreneurship
The Turkey Ministry of National Education developed
“A Lifelong Learning Strategy” paper in 2009, which
highlights entrepreneurship as one of the key competencies.
Entrepreneurship education is recognized as a separate optional
subject, and a student-centered approach is adopted to teach it.
Project work and other assigned non-curricular tasks promote
32 “Entrepreneurship education: a road to success,” European Commission,http://ec.europa.eu/DocsRoom/documents/8565/attachments/1/
translations/en/renditions/native, accessed May 2015.
33 S. Jing, “Headstart for budding business,” China Daily, February 2011.
34 G20 Entrepreneurship Barometer: China Country Report, EY, www.ey.com/
Publication/vwLUAssets/EY-G20-country-report-2013-China/$FILE/EY-G20-
country-report-2013-China.pdf, accessed May 2015.
18 From classroom to boardroom. Creating a culture for high-impact entrepreneurship
student creativity and interaction, with the teachers acting
as a facilitator.
35
From 2008 to 2012, Turkey’s early-stage
entrepreneurship activity doubled (from 6% to 12%), as did
nascent entrepreneurship activity (from 3.2% to 7%).
36
5. Focus on “quality” entrepreneurship and
“quality” employment (medium term)
Governments can use culture as a key driver to support growth
in high-impact entrepreneurs, not “lifestyle” entrepreneurs.
This includes targeted grants, celebration of successes, and
enablement of networks to support knowledge transfer and
risk taking.
Mentorship for the next generation (US): In February
2011, the US Government launched Entrepreneurial Mentor
Corps (EMC), a new program designed to mobilize the current
generation of entrepreneurs to help build and support the next
generation of entrepreneurs. The program will facilitate mentor
matching and provide ongoing support. The frst phase of the
EMC program was a clean-energy sector pilot, which provided
funding to four private accelerators to identify and match
mentors for 100 start-up companies.
37
Mentorship for the next generation (Canada): Futurpreneur
Canada (formerly the Canadian Youth Business Foundation,
or CYBF) has been helping young entrepreneurs launch and
grow successful businesses for nearly two decades. It is the
only national nonproft organization that provides integrated
services to aspiring business owners aged 18–39 by providing
them with pre-launch coaching, business planning support,
requisite fnancing and an ongoing mentoring program. The
program has so far supported 7,800 entrepreneurs, creating
more than 31,000 jobs and generating over C$194 million in
tax revenue.
38
The program recently received a C$14 million
Government of Canada investment to help an estimated 2,700
young entrepreneurs over the next two years.
39
35 “Entrepreneurship education at school in Europe,” European Commission,http://eacea.ec.europa.eu/education/eurydice/documents/thematic_
reports/135EN.pdf, accessed May 2015.
36 Global Entrepreneurship Monitor,http://www.gemconsortium.org , accessed
May 2015.
37 “Entrepreneurial Mentor Corps,” United States Small Business Administration,
www.sba.gov/sites/default/fles/fles/EMC_FactSheet.pdf, accessed May 2015.
38 “What does the future of entrepreneurship look like?” Futurpreneur Canada,
www.futurpreneur.ca/wp-content/uploads/2014/05/BrandBook_EN_web.pdf,
accessed May 2015.
39 “Federal government announces $14m investment in Futurpreneur Canada,”
Futurpreneur Canada, www.futurpreneur.ca/en/press-media/fed-gov-
announcement, accessed May 2015.
6. Establish longitudinal programs to
link culture and education through to
impact (long term)
Entrepreneurial education programs need a sound evidence
base, linking education and culture through to impact,
including innovation and job creation. Initiatives that encourage
knowledge-sharing and community development are also
important to replicate learnings, scale programs and provide
longitudinal data on programs.
Start-up ecosystem development (Brazil): The State
Government of Minas Gerais in Brazil launched Start-ups
and Entrepreneurship Ecosystem Development (SEED), an
accelerator program to foster entrepreneurial culture and
support new and innovative tech ventures. The program,
entitled to US$6.2 million of government funding, offers
benefts to the program participants to share their experiences
and help develop an entrepreneurial community. It has helped
in incubating 73 companies from 12 different countries with
combined revenue of US$10 million at the end of 2014.
40, 41, 42
40 “Seed call for applications,” Impacthub.net, www.impacthub.net/stories/
programs/seed-call-for-applications, accessed May 2015.
41 “Minas Gerais kicks off multimillion-dollar tech startup program,” ZDNet, www.
zdnet.com/article/minas-gerais-kicks-off-multimillion-dollar-tech-startup-
program, accessed May 2015.
42 “How the greatest startup program in Brazil is being killed by politics,”
Medium.com,https://medium.com/startup-down/how-the-greatest-
startup-program-in-brazil-is-being-killed-by-politics-cfce46034027,
accessed May 2015.
From classroom to boardroom. Creating a culture for high-impact entrepreneurship 19
To “make” high-impact entrepreneurship,
governments need to drive a supportive
culture through education
Supporting the growth of high-impact entrepreneurship is
critical to generating gains in income, employment, productivity
and competitiveness gains. At the same time, a positive
entrepreneurship culture is needed to advance the development
and scaling of high-impact frms. For G20 governments,
education is the key conduit for strengthening culture.
Lasting change in education systems, and real change in culture,
takes time. As a result, governments need to make a long-term
commitment to reform their education systems to support
culture and start now to implement new policies. In the near
term, new visas to enable mobility and international networking
initiatives can build bridges across the G20 and drive positive
change in entrepreneurship culture through peer-to-peer, and
experiential, learning. Over the medium term, entrepreneurship
needs to be embedded in formal education systems, from
primary through to tertiary, with industry a crucial partner in the
process. This should be part of a broader economic development
plan focused on “quality” entrepreneurship. In the long term,
measuring culture in education, and linking it through to
impact, will help to defne effective policies and refne initiatives
over time.
Contacts
Rohan Malik
Global Emerging Markets and Deputy Global Leader,
Government & Public Sector
[email protected]
Rebecca Hiscock-Croft
Senior Strategic Analyst,
Government & Public Sector
[email protected]
EY | Assurance | Tax | Transactions | Advisory
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