Analyze how the state can intervene to promote entrepreneurship in different countries.
France & Brazil
Entrepreneurship is a major component of the economic health of a country, so the state must play a role in its promotion and must make every effort to develop it. It will compare how the state can intervene to promote entrepreneurshipin different countries. I chose to compare France and Brazil. France from where I come, it is a country that is currently experiencing the crisis and whose growth is slowing. Unlike Brazil who currently is experiencing a strong period of growth. This country will welcome the next football world cup in 2014 and the Olympic games in 2016. And those events like everybody know are factors of economicgrowth and developing. Also, in Brazil, 96% of employment is provided by SMEs, so the study of entrepreneurship in this country looks like very interesting. First I will define the subject, then I will present the countries and finally I will compare measures for promote entrepreneurship in these two countries.
I. Definition of the topic
Before work on this topic itʼs important to definethe scope of the study. First I will try to define the word entrepreneurship, and then I will see why the states have to promote entrepreneurship and finally how the state could promote entrepreneurship.
Itʼs hard to find a universal definition of entrepreneurship. There is a lot of vision of this subject. Many authors have different approaches of
entrepreneurship. For Say an entrepreneur issomeone who organizes factors of production, like Cantillon. For Kirzner, the entrepreneur recognized market opportunities. For Schumpeter, entrepreneurship creates disequilibrium in the market. Schumpeter talks about “the gale of creative destruction” (Schumpeter, Joseph A. Capitalism, Socialism and Democracy, 1942), it mean that creation contribute to destroy established technologies. A newproduct that arrives in a market goes to replace an old one. Innovations in this way are largely responsible for dynamism of industries and long-run economic growth. And so entrepreneurship is the base of dynamism of industries and long-run economic growth. Itʼs important here to see how entrepreneurship is important for economic growth. And when we know the importance of economic growth for a country,itʼs easy to understand why the states are trying to develop entrepreneurship and so intervene to promote entrepreneurship.
Why the states should intervene?
If the environment is conducive to the development of entrepreneurship, so entrepreneurs can maximize their activity and contribution. And finally the state can know economic and social outcomes. An economic outcome means a GDP (GrowthDomestic Product) growth and a social outcome mean lower unemployment.
How the state could intervene?
For promote entrepreneurship, the state have to work on many area. The GEM defines an entrepreneurial framework conditions. For the GEM, to develop entrepreneurship nine conditions comes into account. Those conditions are: financial support, government policies, government programs,education and training, research and development transfer, commercial and professional infrastructure, internal market openness, access to physical infrastructure and cultural and social norms (Niels Bosma and Jonathan Levie, Global Entrepreneurship Monitor, 2009 Global Report). The state ability to act on this framework is not the same for all conditions. During the conference of the OECD in Istanbul in2004, a number of recommendations were formulated. I choose to focus on four of them. First, for promote entrepreneurship states have to ensure stable macroeconomic and framework conditions to underpin the entrepreneurial business environment. Secondly, states have to reduce and simplify
administrative regulations and costs to start a business. Then, states have to promote an entrepreneurial...