The ubiquitousness of the Internet and the technological advancements of the past two decades provide an unprecedented opportunity for emerging societies to establish robust entrepreneurial ecosystems and advance the United Nations Sustainable Development Goals (SDGs). The digital knowledge hubs, connected reciprocal networks, open innovation, and dynamic new sources of capital are some of the tools that help drive entrepreneurship, establishing growth oriented small and medium sized enterprises (SMEs) that regularly address development challenges in agriculture, manufacturing, services, and urban infrastructure.
Societies with intermittent innovation encounter sluggish economic progress. Sporadic innovation decreases the productivity of existing businesses and curbs creation of new, job-creating industries. The shrinking opportunities discourage entrepreneurship and significantly lower standards of living – low wages, high prices, and poor health – leading to economic decline, higher unemployment, and brain drain.
Robust Entrepreneurial Ecosystem
Abundance in individual growth opportunities, research and development (R&D) facilities, funding mechanisms, favorable working facilities and conditions, and higher wages are some of the key ingredients of robust entrepreneurship ecosystems. The societies powered with these ecosystems experience growing middle-class, balanced employment, systematic innovation, and brain gain.
The correlation between the level of entrepreneurial activity and economic growth is greater than 70%. Growing economies regularly invest 2-4% of their GDP on R&D to fuel entrepreneurship, SMEs, and new high growth companies and industries. These nations with burgeoning innovation and entrepreneurship have above-average rates of economic growth.
The linchpins of effective entrepreneurship ecosystems – Open Innovation Campuses – encourage and promote innovation within government, the private sector, in schools, parks, and city neighborhoods leading to ambitious technological solutions and improvements in various industry verticals. The countries with strong innovation infrastructure are net exporters, have the highest income equality, and account for above average income, jobs, education, and safety.