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©
2016
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Productivity
Organization
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in
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do
not
necessarily
reflect
the
official
views
of
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Asian
Productivity
Organization
(APO)
or
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member.
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APO.
contents
entrepreneurship, start-up Activities, and economic Development 1
cambodia ......................................... .8. 6
Republic o f.. .c...h..i..n...a... .....................................................................................................................................................105
India ...................................................................................................................................................116
Indon .e..s...i.a... .....................................................................................................................................................................150
Japan ....................................................................................................................................................................161
Pakist a...n... ........................................................................................................................................................................198
Philippin e...s.. ..................................................................................................................................................................227
thailand .................................................................................................................................................................261
(cid:19)(cid:148)(cid:145)(cid:976)(cid:139)(cid:142)(cid:135)(cid:3)(cid:145)(cid:136)(cid:3) (cid:8)...(cid:154)...(cid:146)..(cid:135)...(cid:148)..(cid:150)..(cid:149)..(cid:3).....................................................................................................................................................289
....................................................................................................................................................
Entrepreneurship,
Start-‐up
Activities,
and
Economic
Development
Dr.
Tsuneo
Yahagi
Chief
Expert
Report
on
Entrepreneurship
Initiatives
in
APO
Economies
INTRODUCTION
The
Asian
Productivity
Organization
(APO)
Coordinating
Meeting,
held
in
Phnom
Penh,
Cambodia
from
3
to
5
August
2013
(hereinafter
called
the
“Academic
Meeting
on
Entrepreneurship
Development”)
sought
to
distinguish
“entrepreneurship”
from
the
start-‐up
activities
of
entrepreneurs.
Based
on
discussions
at
the
Academic
Meeting
on
Entrepreneurship
Development,
this
report
defines
entrepreneurship
as
the
mindset
that
stimulates
a
person
towards
the
“doing
of
new
things,
or
the
doing
of
things
that
are
already
being
done
[but]
in
a
new
way
(innovation)”
[1].
Here,
“things”
covers
any
societal
activity,
including
business.
In
the
entrepreneurial
process,
existing
things
may
have
to
be
destroyed,
as
Schumpeter
has
described
[2].
An
entrepreneur,
then,
is
defined
as
a
person
who
has
a
strong
entrepreneurial
mindset
and
“gets
things
done”
amid
a
set
of
risks
and
rewards
that
are
defined
by
the
entrepreneur
[1].
As
Becker
et
al.
describe:
“the
will
required
to
push
innovation
through,
against
all
resistance,
characterizes
an
entrepreneur”
[3].
The
Academic
Meeting
on
Entrepreneurship
Development
agreed
to
base
its
research
on
the
conceptual
model
of
the
Global
Entrepreneurship
Monitor
(GEM)
with
respect
to
the
relationship
between
the
level
or
degree
of
entrepreneurship,
and
the
level
of
economic
development
of
a
country
[4].
GEM
affiliates
and
many
other
researchers
argue
that
entrepreneurship
plays
a
critical
role
in
the
development
of
an
economy,
as
well
as
society
as
a
whole,
for
any
given
country.
The
Academic
Meeting
on
Entrepreneurship
Development
confirmed
that
the
enhancement
of
entrepreneurship
is
essential
in
the
development
of
any
society.
Here,
“development”
is
not
necessarily
limited
to
the
economy.
Based
on
our
discussions
at
the
Academic
Meeting
on
Entrepreneurship
Development,
and
previous
relevant
research
from
GEM
and
elsewhere,
we
make
the
following
assumptions
throughout
this
report:
A1.
There
is
a
clear
distinction
between
the
start-‐up
activities
of
entrepreneurs
and
entrepreneurship,
the
latter
being
the
mindset
that
formulates
the
attitude,
activity,
and
aspirations
of
entrepreneurs.
A2.
There
is
a
two-‐way
cause–effect
relationship
between
entrepreneurship
and
the
level
of
economic
development
in
a
community.
Asian
Productivity
Organization 2
Report
on
Entrepreneurship
Initiatives
in
APO
Economies
A3. The
ultimate
objective
of
the
Academic
Meeting
on
Entrepreneurship
Development
was
to
provide
a
productive
guideline
for
researchers
and
policy
makers
who
have
serious
interests
in
the
relationship
between
the
degree
of
entrepreneurship
and
level
of
economic
development
of
a
country.
LEVEL
OF
ECONOMIC
DEVELOPMENT
Classification
of
Economic
Development
As
described
by
Wennekers
et
al.
[5],
GEM
has
adopted
the
five-‐stage
model
(three
major
stages
plus
two
transitional
stages)
model
of
economic
development
suggested
by
Porter
et
al.
in
2002
[6].
The
Academic
Meeting
on
Entrepreneurship
Development
also
agreed
to
adopt
this
model
to
utilize
GEM
data
and
refer
to
GEM
research
works
in
the
future.
Table
1
shows
the
three
major
stages
and
transitional
stages
between
the
major
stages.
Note
that
the
names
of
the
Academic
Meeting
on
Entrepreneurship
Development
member
countries
are
added
to
each
category
based
on
the
classification
made
by
Sala-‐i-‐Martin
et
al.
[7]
using
the
data
reported
in
The
Global
Competitiveness
Report
2013–14:
TNabol
e
1.
ThSeta
fgivee
-‐stage
model
of
eSctoangoem
Niacm
dee
velopment
APO
Member
Countries
1
1st
stage
Factor-‐driven
economies
Cambodia,
India,
Pakistan
2
1st–2nd
transitional
From
factor-‐driven
to
Philippines
stage
efficiency-‐driven
3
2nd
stage
Efficiency-‐driven
economies
Indonesia,
Thailand
4
2nd–3rd
transitional
From
efficiency-‐driven
to
None
stage
innovation-‐driven
5
3rd
stage
Innovation-‐driven
economies
Japan,
Republic
of
China
(ROC)
Source:
Porter
et
al.
[6]
For
the
first
stage,
factor-‐driven
economies
(FD),
the
foundations
of
a
country’s
competitiveness
are
endowed
natural
resources
and
unskilled
labor
with
low
productivity.
Since
basic
products
and/or
commodities
are
the
main
source
of
merchandise,
price
is
the
only
tool
for
influencing
competitiveness.
Accordingly,
to
sustain
competitiveness,
wages
must
be
kept
as
low
as
possible.
Sala-‐i-‐Martin
et
al.
[7]
suggest
adopting
four
basic
requirements
needed
to
maintain
competitiveness:
Asian
Productivity
Organization 3
Report
on
Entrepreneurship
Initiatives
in
APO
Economies
1. Well-‐functioning
public
and
private
institutions;
2. Well-‐developed
infrastructure;
3. A
stable
macroeconomic
environment;
and
4. A
healthy
workforce
that
has
received
at
least
a
basic
education.
If
the
productivity
of
a
specific
country
starts
improving,
the
country’s
wage
level
would
increase
without
losing
its
price
competitiveness.
This
is
the
1st–2nd
transitional
stage
from
factor-‐driven
to
efficiency-‐driven
(FD-‐ED),
where
the
country
is
approaching
an
efficiency-‐driven
(ED)
economy.
At
the
early
stage
of
this
economy,
wages
are
rising
but
companies
cannot
increase
prices,
as
the
market
is
unable
to
perceive
any
significant
improvement
in
the
quality
of
products
or
services.
Therefore,
the
country
should
develop:
higher
education
and
training
systems,
efficient
markets
for
goods
and
services,
well-‐functioning
labor
markets,
efficient
financial
markets,
an
ability
to
fully
utilize
existing
technologies,
larger
domestic
markets,
and
easier
access
to
foreign
markets
[7].
As
businesses
accumulate
knowledge
and
technological
and
management
know-‐how,
they
will
start
producing
unique
products
and
services
with
premium
prices
to
cover
the
cost
of
higher
wages.
This
is
the
2nd–3rd
transitional
stage,
i.e.,
from
efficiency-‐driven
to
innovation-‐driven
(ED-‐ID)
economies.
At
the
third
stage
of
economic
development,
innovation-‐driven
(ID)
economies,
businesses
seeking
to
sustain
a
competitive
advantage
must
continue
to
offer
products
and/or
services
that
provide
unique
value
to
customers
through
sophisticated
inimitable
value
chains,
as
well
as
innovate
products
and/or
services,
and
their
management
skills
[8].
Measuring
the
Stages
of
Economic
Development
Sala-‐i-‐Martin
et
al.
[7]
describe
in
detail
the
criteria
to
define
each
of
the
three
stages
of
economic
development.
The
major
criterion
is
GDP
per
capita
(USD)
with
systematic
adjustments
in
key
sub-‐indices
specific
to
each
stage,
as
follows:
1. Basic
requirements
sub-‐index
(key
FD
economies)
a. Institutions
b.Infrastructure
c. Macroeconomic
environment
d.Health
and
primary
education
Asian
Productivity
Organization 4
Report
on
Entrepreneurship
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in
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2. Efficiency
enhancers
sub-‐index
(key
ED
economies)
a. Higher
education
and
training
b.Goods
market
efficiency
c. Labor
market
efficiency
d.Financial
market
development
e. Technological
readiness
f. Market
size
3. Innovation
and
sophistication
factors
sub-‐index
(key
for
ID
economies)
a. Business
sophistication
b.Innovation
DEGREE
OF
ENTREPRENEURIAL
ACTIVITIES
AND
ENTREPRENEURSHIP
Before
we
test
existing
hypotheses
regarding
the
relationship
between
the
level
of
a
nation’s
economic
activities
and
(a)
entrepreneurial
activities
and
(b)
entrepreneurship,
let
us
briefly
review
how
entrepreneurial
activities
and
entrepreneurship
are
measured.
Measuring
Entrepreneurial
Activities
Discussions
at
the
Academic
Meeting
on
Entrepreneurship
Development
endorsed
our
adoption
of
the
index
developed
by
GEM
to
measure
entrepreneurial
activities.
Every
year,
each
GEM
member
country
(of
which
there
were
100
as
of
2014)
conducts
a
survey
of
entrepreneurs
and
entrepreneurial
activities
involving
2,000
adults
in
their
respective
countries.
Among
the
various
measurements
developed
by
GEM,
the
degree
of
entrepreneurial
activities
or
Total
Entrepreneurial
Activities
(TEA)
rate
is
of
primary
importance.
TEA
is
defined
by
GEM
as
“the
percentage
of
individuals
in
an
economy
aged
18–64
years
who
are
in
the
process
of
starting
or
are
already
running
new
businesses
for
up
to
3.5
years”
[9].
The
TEA
rate
therefore
includes
both
nascent
and
new
entrepreneurs.
GEM
conducts
a
survey
of
a
random
representative
sample
of
at
least
2,000
adults
(18–64
years
old)
called
the
“Adult
Population
Survey
(ASP).”
Asian
Productivity
Organization 5
Report
on
Entrepreneurship
Initiatives
in
APO
Economies
Throughout
the
Academic
Meeting
on
Entrepreneurship
Development,
the
GEM
2012
Global
Report
was
referenced
for
research
data
[9].
Accordingly,
the
data
for
this
current
report
used
the
GEM
data
so
far
as
they
were
available.
Measurement
of
Entrepreneurship
Although
there
is
much
benefit
from
the
use
of
TEA
and
other
indices
developed
by
GEM,
every
member
agreed
that
there
should
be
a
clear
distinction
made
between
the
quantitative
level
of
activities
of
entrepreneurs
(e.g.,
number
of
start-‐ups)
and
the
qualitative
aspect
of
entrepreneurs
that
is
defined
in
our
report
as
“entrepreneurship,”
although
measuring
the
latter
is
expected
to
be
challenging.
While
the
GEM
TEA
has
become
a
widely
used
measure
of
entrepreneurship,
Acs
and
Au tio
[10]
point
out
that
it
has
five
major
shortcomings:
1. Despite
the
fact
that
entrepreneurship
is
multidimensional
in
nature,
TEA
only
measures
entrepreneurial
activity
levels;
2. TEA
fails
“to
incorporate
businesses
differing
impacts.
A
traditional
agricultural
business
established
in
Uganda
or
Peru
is
given
equal
importance
as
an
internet-‐related
venture
in
Silicon
Valley;”
3. “The
most
entrepreneurial
nations
are
defined
as
those
having
the
largest
number
of
new
businesses.
These
are
generally
developing
countries
in
Africa
or
South
America;”
4. TEA
does
“not
take
into
account
differences
in
environmental
factors.
In
fact,
the
efficiency
and
sophistication
of
the
institutional
setting
could
have
a
major
influence
on
the
quality
of
entrepreneurship;”
and
5. “Since
self-‐employment
and
the
business
ownership
ratio
decline
as
a
country
develops,”
TEA
may
“show
that
higher
levels
of
development
are
associated
with
decreasing
levels
of
entrepreneurship.
This
phenomenon
is
inconsistent
with
mainstream
economic
theories,
which
posit
a
direct
connection
between
entrepreneurship
and
development.”
Based
on
the
above
perception
concerning
the
limitations
of
GEM’s
TEA
index,
Acs
and
Szerb
developed
a
new
index,
The
Global
Entrepreneurship
and
Development
Index
(GEDI),
to
capture
multidimensional
and
qualitative
aspects
of
entrepreneurship
[11].
Asian
Productivity
Organization 6
Report
on
Entrepreneurship
Initiatives
in
APO
Economies
They
define
entrepreneurship
as
“a
dynamic
interaction
of
entrepreneurial
attitudes,
entrepreneurial
activity,
and
entrepreneurial
aspiration
that
vary
across
stages
of
economic
development”
[11].
This
definition
intentionally
reflects
the
GEM
conceptual
model
developed
by
Bygrave,
Hay,
Reynolds,
and
Yahagi
at
the
time
of
founding
GEM
in
1998
and
refined
by
Xavier
et
al.
in
the
GEM
2012
Global
Report
[4,
9].
We
strongly
recommend
referring
to
the
works
of
Acs
and
Autio,
and
becoming
familiar
with
GEDI’s
multidimensional
index.
The
following
brief
summary
of
the
three
GEDI
sub-‐indices
should
persuade
us
that
we
are
now
much
closer
to
being
able
to
measure
“entrepreneurship”
as
we
have
conceptualized,
rather
than
simply
looking
at
TEA
[10].
The
first
sub-‐index,
entrepreneurial
attitude
(ATT)
is
defined
as
“the
general
disposition
of
a
country’s
population
toward
entrepreneurs,
entrepreneurship,
and
business
start-‐ups
[10].
The
index
involves
measuring
the
population’s
opportunity
perception
potential,
perceived
start-‐up
skills,
fears
of
failure,
networking
prospects,
and
cultural
respect
for
the
entrepreneur”
[10].
The
second
sub-‐index,
entrepreneurial
activity
(ACT)
is
defined
as
“the
start-‐up
activity
in
the
medium-‐
or
high-‐technology
sector
initiated
by
educated
entrepreneurs
in
response
to
business
opportunities
in
a
somewhat
competitive
environment
…
Operating
in
the
technology
sector
is
important
as
high
rates
of
start-‐ups
in
most
factor-‐driven
countries
are
mainly
in
the
traditional
sectors
and
do
not
represent
high
potential.
The
entrepreneur’s
level
of
education
is
another
important
feature
of
a
venture
with
high
growth
potential.
Additionally,
cut-‐throat
competition
may
hinder
business
existence
and
growth,
giving
a
lower
number
of
competitors
improved
chances
of
survival
or
future
development
prospects”
[10].
The
third
sub-‐index,
entrepreneurial
aspiration
(ASP),
is
defined
as
“the
efforts
of
the
early-‐stage
entrepreneur
to
introduce
new
products
and
services,
develop
new
production
processes,
penetrate
foreign
markets,
substantially
increase
the
number
of
firm
employees,
and
finance
the
business
with
either
formal
or
informal
venture
capital,
or
both.
Product
and
process
innovation,
internationalization,
as
well
as
high
growth
are
included
in
the
measure.
The
capability
to
produce
or
sell
products
that
customers
consider
to
be
new
is
one
of
Schumpeter’s
forms
of
creating
‘new
combinations.’
Applying
or
creating
new
technology
and
production
processes
is
another
important
feature
of
businesses
with
high
growth
potential”
[10].
Asian
Productivity
Organization 7
Description:entrepreneurship and, beyond the inflection point, the quality of .. led easier and more affluent lives with much lower risk, but they chose to utilize Government Printer; 2002. https://www.bot-н‐tz.org/MFI/smepolicy.pdf. The term entrepreneurship or а“kewirausahaan” in Bahasa Indonesia h
