5 January 2005
English only
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT
ENTREPRENEURSHIP AND
ECONOMIC DEVELOPMENT:
THE EMPRETEC SHOWCASE
Geneva
May 2004
UNCTAD/WEB/ITE/TEB/2004/3
CONTENTS
1. Introduction…………………………………..…………………….……….…3
2. What Is Entrepreneurship?………………………………………………… 3
3. Linking Entrepreneurship to Economic Growth……………………….. 4
3.1. The theoretical approach…………………………………………………. 4
3.2. The empirical approach……………………………………………………. 5
3.3. Conceptual frameworks to link entrepreneurship to economic
growth…………………………………………………………..…………... 6
4. How to Foster Entrepreneurship………………………………………... 9
4.1. Fostering entrepreneurial traits: McClelland’s research…………….…. 9
4.2. The EMPRETEC programme and the Brazilian experience………..…..10
4.3. Improving entrepreneurial framework conditions………………..……….11
5. Conclusion………………………………………………………………...…..14
References………………………………………………………………….…….15
2
1. Introduction
The hypothesis that entrepreneurship is linked to economic growth finds its most immediate foundation in simple intuition, common sense and pure economic observation: activities to convert ideas into economic opportunities lie at the very heart of entrepreneurship. Entrepreneurship is a source of innovation and change, and as such
spurs improvements in productivity and economic competitiveness.
Entrepreneurship is closely associated with knowledge and flexibility, two factors that
have gained new significance as a source of competitiveness in an increa singly
globalized world economy. The shift in industry structure towards less concentration
and more decentralization that OECD countries experienced between the mid-1970s
and the early 1990s is only one indicator of this development. With technolog ical
change and the intensified global competition brought about by globalization and
economic liberalization, the assumption that fostering entrepreneurship means foste ring a country's competitiveness today...