Context Descriptions
Download as PPTX, PDF0 likes274 views
The document discusses three levels of context for analyzing entrepreneurship environments: 1) Factor, efficiency, and innovation-driven economies 2) Conflict affected, post-conflict affected, and peaceful economies 3) Urban and rural contexts For each level it identifies how the contexts are defined and the primary constraints on entrepreneurship for each type of context, such as market size, infrastructure, access to finance, education and training. Health, primary education, and macroeconomic environment are not considered binding constraints in any of the contexts.
Context Descriptions
- 1. Context level one Context level two Context level three The external environment can be divided into three context levels*: Factor, efficiency, and innovation driven economies Conflict affected, post-conflict affected, and peaceful economies Urban and rural contexts *Based on the categorization adopted by the World Economic Forum’s Global Competitiveness Report and the Global Entrepreneurship Monitor, which takes into account GDP per capita and the share of exports comprising primary goods.
- 2. Under context level 1, economies are either… Market size Infrastructure Finance (incorporating both access to loans and venture capital) Government programs (a GEM measure of the presence and quality of programs directly assisting SMEs) Higher education and training Technological readiness (a WEF measure based on internet usage and bandwidth) Market size Internal market openness (a GEM measure of the extent to which new firms are free to enter existing markets) Cultural support Finance Government programs R&D transfer Market size Cultural support Finance Commercial and legal infrastructure Entrepreneurship education at primary and secondary level Entrepreneurship education post- secondary level Dominated by subsistence agriculture and extraction businesses, which are heavily reliant on labor and natural resources Characterized by industrialization and an increased reliance on economies of scale with capital- intensive large organizations gaining dominance Characterized by business being more knowledge intensive and an expanding service sector Note: Health, primary education, and the macroeconomic environment do not form a binding constraint in any of the three types of economies. Context level one Factor driven Innovation drivenEfficiency driven How is it defined? Primary binding constraints for each context
- 3. Conflict affected Market size Finance Infrastructure Investor protection Government programs Higher education and training Technological readiness R&D transfer Market size Finance Infrastructure Investor protection Higher education and training Local availability of research and training services Technological readiness Business sophistication Binding constraints are determined at the first context level (i.e. factor, efficiency or innovation driven contexts) in peaceful contexts. or According to War Child’s definition, conflict and post-conflict contexts are: “areas in which there is or recently was pervasive violence – including structural violence – affecting civil populations causing large scale displacement, migration and civilian casualties …. There is no indication of time-frame for entering or exiting a specific (post-) conflict zone, but there is consensus that five years after the end of the conflict can be classified as post conflict.” Note: In many cases, a sub-national assessment may be more useful where active conflict is restricted to particular parts of a country. In addition, there is often no clear dividing line between a conflict and a post-conflict situation. Thus in practice, these assessments may be easier to make based on simple observation. Note: Health, primary education, and the macroeconomic environment do not form a binding constraint in any of the three types of economies. Context level two PeacefulPost-conflict affected Under context level 2, economies are either… How is it defined? Primary binding constraints for each context
- 4. Urban Infrastructure Government programs Higher education and training Local availability of research and training services Technological readiness Finance Market size Binding constraints are determined at the first context level (i.e. factor, efficiency or innovation driven contexts) in urban contexts. The degree of urbanization in a country can be measured using the World Bank’s World Development Indicators for rural and urban development. Note: Health, primary education, and the macroeconomic environment do not form a binding constraint in any of the three types of economies. Context level three Rural Under context level 3, economies are either… How is it defined? Primary binding constraints for each context The World Bank’s categorization of the rural population is approximated as the difference between total population and the urban population, calculated using the urban share reported by the United Nations Population Division. The indicator ‘urban population as a percentage of total population’ is available from Trading Economics. Note: Whether an area is primarily urban or rural might be best defined at the local level, rather than the national level. This information can sometimes be obtained from the national statistical office of the country concerned.