Entrepreneurs who create and grow businesses enjoy social recognition and appreciation.
They are models of leaders who are charismatic, adventurous, persevering and determined. In general, they are seen as people who are essential for generating new jobs and increasing productivity, factors that are critical for economic growth. However, there is a tendency to praise them rather than actually study them.
In recent decades, interest in getting to know and understand entrepreneurship has grown significantly. However, two important limitations in the research on this subject are the lack of empirical data and the lack of units of measurement regarding entrepreneurship. To address these limitations, the Global Entrepreneurship Monitor (GEM) was started in 1999. The GEM is an international academic project that measures, through the use of a survey, the extent to which individuals participate in entrepreneurial activities in a country and the interdependence between entrepreneurship and economic development. Throughout these years, the survey has refined its conceptual framework and basic definitions in order to have greater clarity about the paradigm and the effects of the endeavor.
The GEM is composed of three main indicators of entrepreneurship in the economy of a country. The first refers to the group of early stage entrepreneurial activity (Total Early-stage Entrepreneurship Activity, TEA), which is an indicator of the percentage of individuals between 18 and 64 years of age who are beginning entrepreneurs, that is, entrepreneurs with businesses established less than three months before, or owners or managers of a new business that is less than 3.5 years old. This indicator is enriched with individual attributes such as sex, age and the motivation to create the business – which may be because an opportunity was detected or out of a need to start up a business due to a lack of work. It is also possible to identify the sector and the impact, considering business growth, innovation and internationalization.
The second main indicator is the entrepreneurial activity of the employees (Entrepreneurial Employee Activity, EEA), which is the level of employee participation in entrepreneurial activities, such as the development or launching of new products or services, and the opening of new business units, establishments and subsidiaries.
Finally, the third indicator refers to the Social Entrepreneurial Activity (SEA) and measures the number of individuals engaged in entrepreneurial activities with a social purpose.
Other important indicators of the GEM refer to how much entrepreneurs are valued in society and the individual attributes of entrepreneurs.
Recently, the GEM 2014 Report, with the participation of 73 countries representing 72.4% of the population and 90% of the global gross domestic product, was presented in Mexico.
The results of the report allow opportunities to be identified. For example, in the category of “Values of the Entrepreneur,” Mexico ranks 16th of 17 countries in Latin America in terms of media attention to entrepreneurs, just above Belize. Mexico is also in the penultimate place in Latin America when entrepreneurship is measured as a good career choice. Worse still, Mexico ranks last in Latin America when measuring social appreciation of successful entrepreneurs in a country. Therefore, there is no doubt that entrepreneurship needs to be reassessed in our society.
The media would do well to show inspiring stories of successful Mexican entrepreneurs who work diligently and have managed to create businesses, growing them and turning them into models of success. There are many stories of this kind, yet few people know them and it seems that the only entrepreneurs who we admire are those from other countries.
Various global organizations that promote entrepreneurship recommend that young people have role models, that is, people who are examples to follow and who encourage them to opt for entrepreneurship. But if those people do not know one another or seem distant, the inspirational effect will not occur.
The low valuation given to entrepreneurship in our society is one of the reasons why Mexico ranks 14th out of 19 Latin American countries analyzed by the GEM in intention to start a business, in spite of the fact that in opportunities perceived it is in 9th place. This means that we realize that there is much to do in our country, but there is a lack of interest to create businesses that meet those needs and monetize business opportunities.
Part of the explication lies in the huge fear of failure that prevails in Mexican society. Our country occupies the 9th position in this measurement. In addition, Mexico ranks 17th out of 19 Latin American countries when measuring confidence in our entrepreneurial skills. It is a remarkable contradiction considering that we occupy 7th place in education for entrepreneurship in primary and secondary schools, and fourth place in higher education.
Without a doubt, there are things we are not doing well. Those of us who are dedicated to the education and motivation of future entrepreneurs are failing to convince them that it is an excellent choice for personal development or that they have the necessary skills to change the direction of the country’s economy. Apparently we have not explained that more is learned from an initial failure than from premature success and that it is simply a matter of not losing enthusiasm.
An interesting fact is that in the area of national research and development, leading to new business opportunities, Mexico ranks third among Latin American countries. However, there are few examples of companies that have emerged from the universities of our country, and there is also little evidence of a demand for knowledge among the business sector.
The importance that the government has given entrepreneurship is reflected in the indicator of presence and quality of government entrepreneurial programs, in which Mexico ranks sixth in Latin America. Among the most important initiatives highlighted is the creation of the National Institute of Entrepreneurship in 2013, whose mission was to redesign the mechanisms to support micro, small and medium-sized enterprises (MSMEs) and to coordinate the entrepreneurial ecosystem as a whole, from financial services to the entrepreneurial culture, as well as the Conacyt programs that support the different stages of development of innovative entrepreneurs: from training personnel to initiatives to foster innovation in established companies.
Figure 1. Government programs of support. Source: National Innovation Program, 2011.
Those of us in the entrepreneurial ecosystem of our country have much to do. We need to redouble our efforts to create the necessary conditions so that more Mexicans innovate and start businesses that flourish and become multinationals. It is not only about improving the indicators of the GEM, but to have a good number of companies that grow, employ a skilled work force, and together contribute to raising the gross domestic product of our country.
Figure 2. Entrepreneurial ecosystem of Mexico..
References
Singer, S., JE Amorós y D. Moska. 2015, Global Entrepreneurship Monitor 2014 Global Report, Londres.
Intersectoral Committee for Innovation, National Program of Innovation 2011, Mexico.
The GEM Survey and Entrepreneurship in Mexico
ITAM
Entrepreneurs who create and grow businesses enjoy social recognition and appreciation.
They are models of leaders who are charismatic, adventurous, persevering and determined. In general, they are seen as people who are essential for generating new jobs and increasing productivity, factors that are critical for economic growth. However, there is a tendency to praise them rather than actually study them.
In recent decades, interest in getting to know and understand entrepreneurship has grown significantly. However, two important limitations in the research on this subject are the lack of empirical data and the lack of units of measurement regarding entrepreneurship. To address these limitations, the Global Entrepreneurship Monitor (GEM) was started in 1999. The GEM is an international academic project that measures, through the use of a survey, the extent to which individuals participate in entrepreneurial activities in a country and the interdependence between entrepreneurship and economic development. Throughout these years, the survey has refined its conceptual framework and basic definitions in order to have greater clarity about the paradigm and the effects of the endeavor.
The GEM is composed of three main indicators of entrepreneurship in the economy of a country. The first refers to the group of early stage entrepreneurial activity (Total Early-stage Entrepreneurship Activity, TEA), which is an indicator of the percentage of individuals between 18 and 64 years of age who are beginning entrepreneurs, that is, entrepreneurs with businesses established less than three months before, or owners or managers of a new business that is less than 3.5 years old. This indicator is enriched with individual attributes such as sex, age and the motivation to create the business – which may be because an opportunity was detected or out of a need to start up a business due to a lack of work. It is also possible to identify the sector and the impact, considering business growth, innovation and internationalization.
The second main indicator is the entrepreneurial activity of the employees (Entrepreneurial Employee Activity, EEA), which is the level of employee participation in entrepreneurial activities, such as the development or launching of new products or services, and the opening of new business units, establishments and subsidiaries.
Finally, the third indicator refers to the Social Entrepreneurial Activity (SEA) and measures the number of individuals engaged in entrepreneurial activities with a social purpose.
Other important indicators of the GEM refer to how much entrepreneurs are valued in society and the individual attributes of entrepreneurs.
Recently, the GEM 2014 Report, with the participation of 73 countries representing 72.4% of the population and 90% of the global gross domestic product, was presented in Mexico.
The results of the report allow opportunities to be identified. For example, in the category of “Values of the Entrepreneur,” Mexico ranks 16th of 17 countries in Latin America in terms of media attention to entrepreneurs, just above Belize. Mexico is also in the penultimate place in Latin America when entrepreneurship is measured as a good career choice. Worse still, Mexico ranks last in Latin America when measuring social appreciation of successful entrepreneurs in a country. Therefore, there is no doubt that entrepreneurship needs to be reassessed in our society.
The media would do well to show inspiring stories of successful Mexican entrepreneurs who work diligently and have managed to create businesses, growing them and turning them into models of success. There are many stories of this kind, yet few people know them and it seems that the only entrepreneurs who we admire are those from other countries.
Various global organizations that promote entrepreneurship recommend that young people have role models, that is, people who are examples to follow and who encourage them to opt for entrepreneurship. But if those people do not know one another or seem distant, the inspirational effect will not occur.
The low valuation given to entrepreneurship in our society is one of the reasons why Mexico ranks 14th out of 19 Latin American countries analyzed by the GEM in intention to start a business, in spite of the fact that in opportunities perceived it is in 9th place. This means that we realize that there is much to do in our country, but there is a lack of interest to create businesses that meet those needs and monetize business opportunities.
Part of the explication lies in the huge fear of failure that prevails in Mexican society. Our country occupies the 9th position in this measurement. In addition, Mexico ranks 17th out of 19 Latin American countries when measuring confidence in our entrepreneurial skills. It is a remarkable contradiction considering that we occupy 7th place in education for entrepreneurship in primary and secondary schools, and fourth place in higher education.
Without a doubt, there are things we are not doing well. Those of us who are dedicated to the education and motivation of future entrepreneurs are failing to convince them that it is an excellent choice for personal development or that they have the necessary skills to change the direction of the country’s economy. Apparently we have not explained that more is learned from an initial failure than from premature success and that it is simply a matter of not losing enthusiasm.
An interesting fact is that in the area of national research and development, leading to new business opportunities, Mexico ranks third among Latin American countries. However, there are few examples of companies that have emerged from the universities of our country, and there is also little evidence of a demand for knowledge among the business sector.
The importance that the government has given entrepreneurship is reflected in the indicator of presence and quality of government entrepreneurial programs, in which Mexico ranks sixth in Latin America. Among the most important initiatives highlighted is the creation of the National Institute of Entrepreneurship in 2013, whose mission was to redesign the mechanisms to support micro, small and medium-sized enterprises (MSMEs) and to coordinate the entrepreneurial ecosystem as a whole, from financial services to the entrepreneurial culture, as well as the Conacyt programs that support the different stages of development of innovative entrepreneurs: from training personnel to initiatives to foster innovation in established companies.
Figure 1. Government programs of support. Source: National Innovation Program, 2011.
Those of us in the entrepreneurial ecosystem of our country have much to do. We need to redouble our efforts to create the necessary conditions so that more Mexicans innovate and start businesses that flourish and become multinationals. It is not only about improving the indicators of the GEM, but to have a good number of companies that grow, employ a skilled work force, and together contribute to raising the gross domestic product of our country.
Figure 2. Entrepreneurial ecosystem of Mexico..
References
Singer, S., JE Amorós y D. Moska. 2015, Global Entrepreneurship Monitor 2014 Global Report, Londres.
Intersectoral Committee for Innovation, National Program of Innovation 2011, Mexico.