The United States lags behind in Entrepreneurship

I recently read a report on the  performance of the United States on the Global Entrepreneurship and Development Index (GEDI), which captures the  measures of quantitative and qualitative aspects of entrepreneurship. It measures entrepreneurial performance in 71 countries. The United States appears among the top entrepreneurial economies and ranks third on the GEDI.

It performs very well on the aspirations index but lags somewhat on the attitudes and activity indexes. At the pillar level, the United States is strong in startup skills, competition, and new technology but weak in cultural support, tech sector, and high-growth business. The reasons for showing weakness in these last indexes is This paper looks at the performance of the United States on the Global Entrepreneurship and Development Index (GEDI), which captures the contextual features of entrepreneurship.

The index builds on and improves earlier measures by capturing quantitative and qualitative aspects of entrepreneurship. It measures entrepreneurial performance in 71 countries over three sub-indexes, 14 pillars, and 31 individual and institutional variables. The United States appears among the top entrepreneurial economies and ranks third on the GEDI. Who ranks at the top according to the new GEDI? Denmark and Canada appear at the top of the overall rank.

The US performs very well on the aspirations index but lags somewhat on the attitudes and activity indexes. At the pillar level, the United States is strong in startup skills, competition, and new technology but weak in cultural support, tech sector, and high-growth business. The chief reasons for these  weaknesses are the changing political environment and international volatility, the bursting of the tech sector bubble of the 1990s, the recent recession, and the improving performance of other counties.

My take away from this report is that we need to better harness entrepreneurship.  Kauffman’s Data Maven site is a blog where you can find analysis on new data developments.

Stay tuned also at www.unleashingideas.org where Global Entrepreneurship Week in mid November will report on policy gatherings across the globe that discuss this paucity of data. San Antonio and the Entrepreneurs Organization will host our own Global Entrepreneurship conference on November 18.  More to come on this.

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