MOTIVATION
OPPORTUNITY
SKILLS
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The Interconnection between SME and Entrepreneurship Policies
Entrepreneurship
Policy
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Pre-start period
Nascent phase Start-up
SME-Policy
Post-start-Up
Up to 42 months
Maintenance
and expansion
Time process
Evaluation Problems and Perspectives
Different types of entrepreneurship policy measures
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Type of
measures
Problems stated
(examples)
Knowledge
from
research
Objectives
(examples)
Administrative
burden
Too many
High compliance costs
Limited but
increasing
Decrease
regulations
with x %
Im proving
perceived
opportunity
Seed financing
Lack of seed capital
Relatively h igh costs
Entre preneurship
education
Lack of role models
Lack of awareness
Extensive
Increase seed
but conflicting capital in different
forms
Limited
Increase the
awareness to be
an entrepreneur
Tax incentives
In crease expected
profits
Limited
Increase the no of
start-up s
Counselling and
info rmation
High costs
Lack of competence
Limited and
conflicting
Increase
competence
Free information
Evaluation Problems and Perspectives
Different types of entrepreneurship policy measures
Type of measures Problems stated
(examples)
Knowledge
From
research
Objectives
(examples)
R&D and
inno vations
Need for renewal
Techno logy transfer
Limited and
conflicting
Increase innovative
entrepreneurship
Export
Low degree of
internationalisation
Lack of competence
Limited
Create better
international
possibilities
Target groups (e.g.
women
entrepreneurs)
Too few
Some mainly
statisticly
oriented
Increase the degree
of start-up s for
underrepresented
groups
Promotion activities Lack of awareness and
role-models
Limited
Create more
positive attitudes for
entrepreneurship
Networking
Limited
Create more
awareness of
different policy
programs
Lack of individual
competence and
resources
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Source: Revised from Lundström and Steve nson, 2002
Perspective on growth and type of entrepreneurship
Technological
change
Economic
growth
?
Opportunity-based
entrepren eurship
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?
Necessity-based
entrepren eurship
Comprehensiveness Index Method
107 items to measure intensity
for six areas
Comparing areas and countries
Preliminary approach
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OUTCOMES
STRUCTURE
SME AND
ENTREPRENEURIAL
VITALITY
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Conceptual Model Approach
Price and cost structure
Tax structure
Level of capital investment
Innovation
Regulations
Profits
Market potential
Future prospects
Unemployment
Barriers to
entry
Growth
Economies of scale
Dissatisfaction
Need for independence/control
Concentration
Level of
Entrepreneurial
Activity
Degree of
competition
Personal networks
Number of
years
Work
experience
Competence
Team experience
experience
Job training
Role models
Work position and
situation
Education
Exposure to
entrepreneurship education
Media
Awards
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Tacit knowledge
Close role models
Level of education
The Entrepreneurship System
National
Regulatory
bodies
Regional
Local
Researchers
Accountants, lawyers,
consultants
Instructors
Governments
Counsellors,
advisors, mentors
Service
providers
Tech transfer offices
Universities
and colleges
Guidance counsellors
Angels
Parents
Banks
Venture
capitalists
School
system
Level of
entrepreneurship
Capital
providers
Teachers
School administrators
The media
Entrepreneurs
Nascent
SMEs
Broadcasters
Reporters
Business Community
associations organizations
Growth firms
Enterprise centres
Chambers of Commerce
Chambers of Commerce
Entrepreneurs’ associations
Economic development offices
Trade and employer associations
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Government
loan guarantee
New customers
New board chairperson
Product development
Counselling from
a public service
provider
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Information from
a public service
provider
Individual
entrepreneur
Increase of
equity capital
New strategic-plan
A new loan
by the bank
Consultancy work
The relation between Dependency and Results
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Positive
Negative
Dependent
Mostly
Seldom
Independent
Seldom
Mostly
Entrepreneurship education
-
long-term effects
continous effects
Aministrative burden
-
a high number of alternatives
Target groups
-
identifying and isolating
Entrepreneurship promotion
-
small investments
Networking
-
defining the unit to be evaluated
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