Last Thursday we held a Twitter chat for Global Entrepreneurship Week to discuss mentors, role models, and the entrepreneurship ecosystem. Read a summary of the chat below!
If you missed any of our coverage of entrepreneurship around the world last week, you can read all our GEW 2013 stories here.
Millions of entrepreneurs around the world are working day in and day out to build their businesses and create a better life for themselves, their families, and their communities. Each year for Global Entrepreneurship Week we take the opportunity to highlight their contributions.
At CIPE, we recognize the vital role that entrepreneurs play in driving economic growth, creating opportunity, and driving innovation in the developing world. Unfortunately, entrepreneurs in many countries are forced to channel their resourcefulness and drive into overcoming artificial barriers like convoluted registration procedures, lack of property rights, or difficulty in obtaining financing, rather than starting and growing their businesses. That’s why CIPE supports the private sector in advocating for entrepreneurship-friendly policies that help build a supportive “ecosystem” for entrepreneurship success.
Next week, the CIPE blog will feature stories from our programs and partners supporting entrepreneurs and entrepreneurship around the world. Stay tuned to the CIPE Development Blog and the #GEW hashtag on Twitter, and don’t forget to check the official Global Entrepreneurship Week website for events in your country!
Jon Custer is Social Media / Communications Coordinator at CIPE.
In September, Pakistan passed an important democratic milestone: its first peaceful handover of power from one elected government to another, breaking the long cycle of coups and military dictatorship the country has suffered through since its independence.
This moment was a long time in the making, the culmination of many efforts by many different segments of society. Could the slow-and-steady transition be a model for other countries to follow?
Not counted: Nigeria’s GDP model is based on the year 1990. (Photo: Wayan Vota)
In 2014, one small policy tweak will grow Nigeria’s economy by 40 percent, causing it to overtake South Africa as the largest in the region. A similar change in Ghana caused that country’s economy to grow 60 percent, while in Guinea-Bissau and Gambia the economy doubled in size. Even the United States increased its output by 3.6 percent using the same technique. What happened?
GDP rebasing. Simply put, these countries are all changing the way they measure their Gross Domestic Product — the sum total of all economic activity in a country in a given year — to better reflect what’s really happening the economy.
When Nigeria’s rebasing is complete, it won’t mean the country is actually producing 40 percent more goods and services. Living standards won’t jump by 40 percent — the government will just be counting more accurately. But it’s still hugely important.
Markets thrive on transparency. (Photo: Wikimedia Commons)
Many of the world’s largest and fastest-growing companies now come from emerging markets. But according to a recent report, these companies lag behind their more established peers in transparency — a handicap that could prevent them from becoming true global leaders in their fields.
Looking at 100 large multinational companies from 16 emerging market countries, Transparency International found an average transparency score of just 3.6 out of 10. A 2012 report on the world’s largest companies using the same methodology found an average score of 4.7. And while only one in five of the emerging-market multinationals had a transparency score above 5.0, just under half of the largest companies did.
These results should be deeply concerning for the executives of these companies, their investors, and the governments and citizens of countries where they operate.
Govinda explains the merits of a high-end cookstove to a potential customer. (Photo: Think Africa Press.)
The adjective “unskilled,” like many words favored by economists, can be highly misleading. Trying to survive on the streets in a Kenyan slum, for example, takes a lot of skills — just not ones that are easy for the market to value and reward.
Take Alex Govinda, for example: as a homeless youth in Kwangware, on the outskirts of Nairobi, he had to hustle every day just make enough money to eat, collecting and selling scraps — and sometimes stealing shoes or mobile phones, too. Now he is an expert salesperson, using his skills to hawk high-quality goods to his neighbors and earning a decent living in the process, thanks to a unique arrangement set up by an American NGO called LivelyHoods.
Govinda’s situation — and the solution LivelyHoods came up with to solve it — are a perfect illustration of the institutional forces holding millions of poor people around the world back to from reaching their true potential.
Democratic Switzerland is the world’s most competitive economy. China doesn’t make the top 10. (Photo: Wikimedia Commons)
The World Economic Forum has just released its latest Global Competitiveness Report, which assesses the competitiveness of 148 economies around the world. This year’s top ten includes few surprises, but does illustrate an important fact: eight of them are democracies and rated “Free” by Freedom House’s Freedom in the World index. (Singapore, which ranks second, and Hong Kong, which is under Chinese sovereignty and ranks seventh, are both rated “Partly Free.”)
Why is this important? At CIPE, we believe that democratic and economic development go hand in hand: strong democratic institutions support strong market institutions, and vice versa. But this belief is not shared everywhere. There is a growing contingent who feel that “strong” leaders in charge of highly directed economies can lead poor countries to prosperity, and that elections and debate simply get in the way.