What government policies and initiatives are most likely to generate high levels of
entrepreneurial activity? Which are positively correlated with the economic well-being
of a country as measured by growth in GDP and job formation? Project directors of the
Global Entrepreneurship Monitor (GEM), who define entrepreneurship as “any attempt
at new business or new venture creation, such as self-employment, a new business organization, or the expansion of an existing business, by an individual, a team of individuals,
or an established business,” suggest the following:
• Promoting entrepreneurship, especially outside the most active age group (25–
44), with specific programs that support entrepreneurial activity.
• Facilitating the availability of resources to women to participate in the entrepreneurial process.
• Committing to long-term, substantial postsecondary education, including
training programs designed to develop skills required to start a business.
• Emphasis on developing an individual’s capacity to recognize and pursue new
• Developing the capacity of a society to accommodate the higher levels of
income disparity associated with entrepreneurial activity.
• Creating a culture that validates and promotes entrepreneurship throughout
Researchers at the Kauffman Center for Entrepreneurial Leadership (Babson College)
and the London Business School revealed these propositions based on a study
designed to prove a causal relationship between factors that affect entrepreneurial
opportunities and potential, to business dynamics and national economic growth and