Entrepreneurship counseling in the Nordic countries

1. Entrepreneurship counseling in the Nordic countries Stockholm May 5 Thomas Ebdrup

2. Content • Framework conditions for entrepreneurship in the Nordic region • Entrepreneurship counseling & the common Nordic Challenge • Success stories & possible policy lessons

3. The Nordic countries are good on start-up… Source: OECD

4. …but perform less well on growth firms Source: OECD

5. Nordic Entrepreneurship Monitor • Prepared for the Nordic Counsel of Ministers • International Entrepreneurship Benchmark System • Performance - 6 indicators on start-up & growth • Framework conditions - approx. 80 indicators • Indicator sources: OECD, Eurostat, World Bank a.o. • Will be available at www.norden.org

6. Preliminary findings for the Nordic region • Countries that improve their framework conditions seems to experience better performance • There are marked differences between the Nordic framework conditions and recent improvements • The framework conditions are generally good for starting a business (especially the regulatory framework and market conditions) • The Nordic entrepreneurship culture and capabilities can still be improved

7. Entrepreneurship counseling in the Nordic countries • All Nordic countries provide basic services for start-ups often at local or regional level • Some Nordic countries also provide services for high-growth companies in the form of acceleration programs (e.g. Denmark and Finland) • None of the Nordic countries have an infrastructure for developing start-ups into large companies with 250 or more employees in 10 or 20 years

8. The common Nordic challenge • Early internationalization & Born Global • More of a “venture” mindset in the Nordic region • Lack of private venture capital in early stages • Lack of personal competencies needed to develop high-growth companies in the Nordic countries

9. Developing a high-growth infrastructure:The Israeli success storey • 44 companies in the Deloitte Fast Growth 500 (36 in Massachusetts and 4 in Finland) • +100 companies listed in NASDAQ • Best venture market outside US (60 active funds) • Yozma: Successful public venture program • Publicly funded incubator program changed in 2003; incubators now managed by experienced professionals with direct upside in the incubated companies

10. Developing a high-growth infrastructure:Lessons from Silicon Valley • Strong formal and informal network between entrepreneurs, venture capitalists, established companies and service providers • Intensively use of network in recruiting the right people for new companies • Stanford and Berkeley plays an important role • Well-developed environment of service-providers specialized in working with start-ups

11. Possible policy lessons • Acceleration programs might be a good idea for those countries without a program today • Room for government to improve the high-growth infrastructure e.g. training of service providers • Need for a systematic approach to attract talent to develop new companies to the region • A new mindset needed within public agencies?

12. The Nordic challenge and its policy implications Thank you! te@ebst.dk Stockholm May 5 Thomas Ebdrup