Fostering Entrepreneurship in Georgia
Job creation and productivity growth are at the forefront of today's global development agenda. The 2013 world development report on jobs identified entrepreneurship as an important tool in addressing these dual goals. This study uses the entr...
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| Format: | Publication |
| Language: | English en_US |
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Washington, DC: World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/01/18147170/fostering-entrepreneurship-georgia http://hdl.handle.net/10986/15786 |
| Summary: | Job creation and productivity growth are
at the forefront of today's global development agenda.
The 2013 world development report on jobs identified
entrepreneurship as an important tool in addressing these
dual goals. This study uses the entrepreneurship model put
forth in the organization for Economic Co-operation and
Development (OECD)-Eurostat Entrepreneurship Indicator
Program (2009), with minor modifications. The model
comprises various determinants that policy can affect and
that in turn influence entrepreneurial performance, or the
amount and type of entrepreneurship that take place. The
model then refers to the impact of entrepreneurship on
higher-level goals such as economic growth, job creation,
and poverty reduction. This study focuses on determining the
level of entrepreneurship in Georgia and analyzes the role
of each determinant in both fostering and constraining
entrepreneurial activity. Entrepreneurs view opportunities
in the economy by measuring their profit-making potential;
that is their first motivation. Entrepreneurs will not
pursue a societal need unless they can successfully make a
profit. Entrepreneurship also depends on various social and
individual characteristics of gender and culture. It
involves taking risks, and potential entrepreneurs cannot be
risk-averse. A fundamental question stemming from analyzing
these determinants of entrepreneurship is how to design
effective public policy that promotes innovative firm
creation and enables existing firms to catch up, improve
productivity, and grow. Experiences from Asian countries and
developed economies have shown that innovative Small Medium
Enterprises (SMEs) and knowledge-based firm creation have
played a major role in the development of new national
economic advantages. In this context public policy is
pivotal in creating an enabling environment that helps
alleviate the market failures that inhibit firm growth.
Emerging markets have other environmental conditions that
are not present (or are less prevalent) in developed
markets, and investors considering investing in emerging
markets will face added risk as a result. |
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