Capital Access Index 2006 Gauging Entrepreneurial Access to Capital

Transcription

1 Capital Access Index 2006 Gauging Entrepreneurial Access to Capital Max = Hong Kong Source: Milken Institute United Kingdom U.S. India China Brazil Russia

2 Ease of Doing Business Top 10 Economies Country 2007 Ranking 2005 Ranking Singapore 1 3 New Zealand 2 1 United States 3 2 Canada 4 8 Hong Kong, China 5 4 United Kingdom 6 7 Denmark 7 12 Australia 8 5 Norway 9 6 Ireland Source: The World Bank

3 United Kingdom Canada Ireland Norway Sweden Finland Australia New Zealand United States Slovak Republic Luxembourg Denmark Portugal EU* Italy Japan Hungary Germany Iceland Greece Spain France Belgium Austria Netherlands Korea Switzerland Czech Republic Mexico Poland Turkey Barrier to Entrepreneurship By Country, 1998 vs Source: OECD Entrepreneurship Outlook average 2003 average

4 Structure of Medium and Small Enterprise (MSME) Sector Percent of Total MSME Sector U.S. U.K. Japan Germany Brazil India Israel S. Africa Source: World Bank Mi S ll M di

5 MSME Participation in the Economy By Income Group MSMEs per 1,000 people Source: World Bank Low Lower middle Upper middle High

6 MSME Participation in the Economy Selected Countries MSMEs per 1,000 people Source: World Bank Israel Japan Brazil U.S. India U.K. Russia Germany S. Africa China

7 MSME Contribution to Employment MSMEs employment, % of total Source: World Bank Israel Japan Brazil U.S. India Japan Brazil U.S. U.K.

8 Cost to Start SMEs is Larger in Low Income Countries Source: World Bank

9 Cost to Enforce A Contract is Larger in Low-Income Countries Source: World Bank

10 High Income Countries Have Better Access to Credit Source: World Bank

11 Favorable Investment Climate is Associated with Greater Presence of SMEs Source: World Bank

12 Impediments to SMEs: Time to Start a Business Source: World Bank

13 Impediments to SMEs: Large Cost to Start A Business Source: World Bank

14 Impediments to SMEs: Limited Access to Private Credit

15 Impediments to SMEs: Unfriendly Investment Climates

16 Capital Access Index, ,000 60,000 GDP per Capita, US$ 50,000 40,000 30,000 20,000 10,000 y = 6,821x - 21,731 R 2 = , Sources: World Economic Outlook and Milken Institute Less access More access C it l A I d

17 Cost of Opacity, Opacity Index Premium/Discount 6.63% China 9.45% Nigeria 10% 8% Opacity Index % UK -0.48% HK 0.00% USA 5.76% India 6.00% Russia 6% 4% 2% 0% Premuim/Discount 10-2% 0-4% Source: Milken Institute, 2006

18 Inward FDI Stock Top 20 Economies Rank Economy Percent of World Total Rank Economy Percent of World Total 1 United States Ireland United Kingdom Australia Fra nce Ita ly Netherlands Mexico Hong Kong, China Switzerland Germany Sweden Spain Singapore Be lgium Bra zil Ca nada De nm a rk China Russian Federation 1.16 * Inward FDI Stock is based on US$. Source: United Nations Conference on Trade and Development

19 Business Entry Rate and Density By Region, 2003 Percent Entry Rate Business Density LAC: Latin America and the Caribbean 0 Asia Middle East & Africa LAC Europe Sources: The World Bank, U.S. Census, U.S. Small Business Administration US Development All Countries Entry Rate = New Firms / Total Firms, Business Density = Total Firms / Population

20 GDP Levels and Growth Rates Per Capita GPD Gap vis-à-vis the U.S., Percent Gap in the Average Growth Rate IRL 3 POL HUN SVK KOR FIN 2 LUX TUR CZE GRC ESP SWE AUS 1 NOR MEX PRT NZL BEL EU19 FRA DEU ITA JPN CAN DNK 0 AUT -1 Gap in GDP per Capita Relative to the U.S. in Source: OECD Economic Policy Reforms: Going for Growth,

21 Contributions of Capital Investment Labor Intensive Growth vs. Capital Intensive Growth, PRT GRC Capital Services Growth Rate 4 3 JPN DNK FRA CAN ITA AUT DEU USA SWE GBR AUS IRL 2 NZL BEL 1 NLD 0 FIN Labor Productivity Growth Rate Source: OECD Economic Policy Reforms: Going for Growth, 2007

22 Administrative / Economic Regulations By Country, Administrative Regulations 3.0 Correlation Coefficient = 0.47 t-statistic =2.8 TUR POL 2.5 CZE CHE MEX 2.0 AUTNLD ESP BEL GRC ISL KOR DEU JPN ITA LUX FRA 1.5 SVK PRT HUN NZL FIN USA IRL SWE 1.0 AUS NOR DNK GBR CAN Source: OECD Entrepreneurship Outlook 2005 Economic Regulations

23 Complexity of Administrative Procedure By Country,1998 vs OECD Average TUR 3.0 CHE NZL IRL NLD ISL CZE DEU DNK BEL OECD Average POL EU15 PRT GBR USA NOR AUS FRA FIN SWE JPN KOR CAN GRC 0.5 HUN ITA ESP MEX AUT Source: OECD Entrepreneurship Outlook 2005

24 Contributions of ICT / Non-ICT Capital to Growth of Capital Services Percent Total ICT Total Non-ICT ICT : Information Communication Technology -2 ITA JPN GRC FIN BEL PRT DNK GBR SWE DEU AUT FRA ESP NLD NZL CAN IRL AUS USA Source: OECD Economic Policy Reforms: Going for Growth, 2007

25 Policy Issues Easing regulatory and administrative burdens Creating business-friendly regulatory environments Increasing administrative simplications through facilitating information technology mechanisms Setting ambitious targets through accelerated company registrations Improved labor market flexibility and taxation measures Smoother business transfer and bankruptcy process Fostering entrepreneurship culture Education and training Source: OECD Entrepreneurship Outlook, 2005

26 Thomas Friedman s 7 Rules for Companies Coping with the Flattening World Rule #2: And the small shall act big One way small companies flourish in the flat world is by learning to act big. And the key to being small and acting big is being quick to take advantage of all the new tools for collaboration to reach farther, faster, wider and deeper. Rule #3: And the big shall act small One way that big companies learn to flourish in the flat world is by learning how to act really small by enabling their customers to act really big. Source: Friedman, Thomas L The World is Flat: A Brief History of the Twenty-First Century. Farrar, Straus and Giroux

27 Small to Mid-sized Business in U.S. 99% of Employers 70% of Net New Jobs 51% of Private Sector Workers 50% of GDP Source: Small Business Administration/ White House 2004/2005

28 World Trade Total Value of Export US$ Trillions Source: IFS

29 World Trade Export as Percent of GDP Percent of GDP Source: WEO E

30 Number of U.S. Exporting Companies Quadruples 250,000 Number of SMBs Exporting 200, , ,000 50, Source: U.S. Department of Commerce

31 SMBs Globalize in Various Ways 40% 38% 35% 30% 29% 25% 20% 17% 17% 15% Export Import Outsource External Office or Affiliates Source: Vistage International Poll 2006

32 Cross-Border Merger and Acquisition Sales 1995 and 2005 Developed Countries Asia Latin America East Europe Africa/Middle East Middle East World ,854 5,978 7,998 7, , ,472 54,854 34,873 57,101 9,066 5, ,489

33 Most Significant Business Issue/ Challenge Canada Malaysia U.K. U.S. Finding, Hiring, Retaining Staff #1 #1 #1 #1 Source: Vistage Index 2005*/2006