THE GLOBAL ENTREPRENEURSHIP IN AUSTRIA AND COLOMBIA

An Action Reseach
Presented to the Faculty of
College of Accountancy, Business, Economics and
International Hospitality Management
Batangas State University
Batangas City

In Partial Fulfillment
of the Requirements for the
Degree of Master of Business Administration

By:

REAL, DANICA A.

May 26, 2019

AUSTRIA
OVERVIEW
Austria is a landlocked country of approximately 8.7 million inhabitants in Central
Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary
to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west. The
territory of Austria covers 83,878 square kilometers (32,385 sq. mi) and has a temperate and
alpine climate. Austria's terrain is highly mountainous due to the presence of the Alps; only 32%
of the country is below 500 meters (1,640 ft), and its highest point the Grossglockner is 3,798
meters (12,460 ft). The majority of the population speaks German, which is also the country's
official language. Other local official languages are Croatian, Hungarian and Slovene.
Austria is a parliamentary representative democracy. The capital and largest city, with a
population exceeding 1.8 million, is Vienna. Austria is one of the wealthiest countries in the
world, with a nominal per capita GDP of $46,972 (2018 Est.). The country has developed a high
standard of living and in 2016 was ranked 24th in the world for its Human Development Index.
Austria has been a member of the United Nations since 1955, joined the European Union in
1995, and is a founder of the OECD. Austria also signed the Schengen Agreement in 1995, and
adopted the European currency, the euro, in 1999.
As a federal republic, Austria is comprised of nine independent federal states (also
referred to as provinces): Burgenland, Carinthia, Lower Austria, Upper Austria, Salzburg, Styria,
Tyrol, Vorarlberg and Vienna.
The origins of Austria date back to the time of the Roman Empire when a Celtic kingdom
was conquered by the Romans in approximately 15 BC and later became Noricum, a Roman
province, in the mid-1st century AD—an area which mostly encloses today's Austria. In 788 AD,
the Frankish king Charlemagne conquered the area and introduced Christianity. Under the native
Habsburg dynasty, Austria became one of the great powers of Europe. In 1867, the Austrian
Empire was reformed into Austria-Hungary.
The Austro-Hungarian Empire collapsed in 1918 with the end of World War I. The First
Austrian Republic was established in 1919. In the 1938 Anschluss, Austria was occupied and
annexed by Nazi Germany. This lasted until the end of World War II in 1945, after which
Austria was occupied by the Allies and its former democratic constitution was restored. In 1955,
the Austrian State Treaty re-established Austria as a sovereign state, ending the occupation. In
the same year, the Austrian Parliament created the Declaration of Neutrality which declared that
the country would become permanently neutral.
Contributors to the World: Austria was home to Sigmund Freud, the founder of
Psychoanalysis and the famous, or infamous to some, “Freudian slip”. Among other noteworthy
Austrians are: Ferdinand Porsche, of automobile fame and Christian Doppler, most famous for
describing what is now called the Doppler effect, the science that brought about, among other
inventions, the Doppler radar, which plays a major part in our storm forecasting. Another noted
scientist is Anton Zeilinger, who is known as the first scientist to demonstrate quantum
teleportation. Viktor Frankl, is a world renowned psychiatrist and author of Man’s Search for
Meaning. Other outstanding Austrian-born émigrés include the world-renowned management
thinker, Peter Drucker and the 38th Governor of California, the (ex) Honorable Arnold
Schwarzenegger, who is immortalized by these famous words: “I’ll be back” from his
Terminator movies. Interestingly, a number of these luminaries, including Mozart, come from
the Salzburg area. Perhaps it’s the fresh mountain air or the many clear mountain springs and
lakes.

GLOBAL ENTREPRENEURSHIP IN AUSTRIA

 Each entrepreneurial framework is first presented on the basis of the individual
components collected. Following this, results for Austria will also be related with those from
other European Union (EU) countries participating in GEM in 2016.
Financial Environment
The entrepreneurial framework "financial environment" stems from several individual
issues concerning opportunities for new companies to receive private and public funds. It
examines the availability of financing options from public and private sources in Austria.
The financial environment in Austria is rated below average by experts (2.8). Access to
finance is the lowest valued by IPOs (1.9). While venture capital (2.6) financing is equally low,
private swarm financing (crowd funding) (3.0) is rather neutral in the assessment. The
availability of financing by professional "business angels" (3.2) and informal investors (private
individuals) (3.2) was also rated positively.
Deficits can be seen in equipping new and growing companies with equity (2.5) and debt
capital (2.5). Government subsidies to new and growing companies, on the other hand, are
sufficiently available (3.6), according to experts.
Compared to results from previous years, the financing situation of companies in Austria
is better assessed by experts this year (2012:2.6; 2014:2.5; 2016:2.8). In particular, equity
financing (2012:2.4; 2014:2.3; 2016:2.6) and financing by informal investors (2012:2.9;
2014:2.7; 2016:3.2) are seen in a more positive way. For the availability of swarm financing
(crowd funding) (3.0) and the financing by "Business Angels" (3.2), a comparison with previous
years is not possible.
The availability of debt capital (2012:2.8; 2014:2.4; 2016:2.5) and that of equity
(2012:2.4; 2014:2.3; 2016:2.5) is below average but positive trend since 2012. The availability of
IPOs as a source of equity for new and growing companies is considered by experts to be eligible
for improvement over the years (2012:1.9; 2014:1.6, 2016:1.9).
Austria has been able to greatly improve its position in the overall European perspective
since 2014. Austria was only in the back midfield in 2014 (2.5) and advanced some places, not
least due to the deterioration in the assessment of the financial environment in other European
countries. In addition, Austria was rated better than in 2014, leaving countries such as Sweden
and France behind.
Challenges related to a wide range of financing options remain a characteristic of the
Austrian corporate landscape. However, there is a slight improvement in availability and
achievable, especially as Austria also occupies a good position in European comparison.
Alternative forms of financing, which, however, cover only part of the necessary
financing, are increasingly being used. The majority of founders invested their own savings
(2016:85.5%; 2015:89.9%). Government subsidies and subsidies are most often claimed as
external capital sources by 55.4% of founders. A fifth were supported by business angels and
30.1% cooperated with incubators. The use of support from incubators has doubled in Austria
since 2015. After all, 28.4% of all start-ups are financed solely from their own savings. Likewise
venture capital (24.1%) And bootstrapping (22.3%) In Austria, start-ups are used for capital
raising. (WU Founding Center, 2016)
Valuations regarding the development of the financial market through the Global
Competitiveness Report 2017 improved since the previous year and Austria is ranked 34th
(2014/2015:43, 2012/2013:34th place). In particular, the availability of financial services is
better rated (2015:11th place, 2016:7th place). In the same way, the simplicity of lending (ranked
19th) and the availability of financing by the local stock market (capital market) (ranked 25th)
show strong improvements by international standards. (World Economic Forum, 2016) For the
first time since 2012, the prospect of a positive trend in the development of the financial market
in Austria has emerged. (World Economic Forum, 2016a) The low availability of own resources
is the main reason for the failure of planned investments, according to a recent survey.
Insufficient internal financing opportunities inhibit investment in almost half of innovative
companies in Austria. While equity investment is declining, companies are taking more
advantage of bank financing and subsidies than in the previous year. Despite the low use of
alternative forms of financing, interest in silent shareholdings and crowd funding is growing.
(WKO, 2016b)
Since the entry into force of the Alternative Finance Act (AltFG) in 2015, there has been
an increasing interest in crowd funding on the part of both investors and companies. In the first
half of 2016, the volume spent on crowd investing in Austria almost doubled compared to the
previous year's total and amounted to EUR 13.5 million. (WKO, 2016a). This dynamic needs to
be used more for a wide range of industries in Austria to enable investment and create or secure
jobs.
Government Policy
The subject block of government policy consists of two constructs. On the one hand, the
area of general government policy is general aspects such as taxes, bureaucracy and the like. In
the area of concrete government policy, there are aspects of support and prioritization of (new or
growing) companies.
General government policy (2.2) achieves only below-average results. Also below the
scale of 3.0, the company-related government policy (2.6) is assessed by experts. In particular,
government bureaucracy, regulations and licensing rules (1.8) are causing difficulties for new
and growing companies.
Experts also diagnose a lack of support for new companies in the context of government
policy (1.8). The ability to provide necessary permits and licenses within a week (1.9) is also
moderately valued. The level of taxes (1.8) places a significant burden on businesses and policy
priorities to support new businesses should be intensified, especially at the federal level (2.6).
Comparatively well, we assess predictability and consistency in raising taxes and government
regulations (3.4).
Compared to 2014, the "concrete government policy" construct will be better evaluated
this year. This change is due to a better assessment of the prioritization of support for companies
at local and regional level (2012:3.1; 2014:2.9; 2016:3.2) and a less severe burden on tax levies
(2012:2.7; 2014:2.1; 2016:1.8). With regard to the preference of new and growing enterprises
through government policy, a similar weak result is evident as in the comparative years
(2012:2.2; 2014:2.0, 2016:1.8). Similarly, according to the experts, the availability of necessary
permits and licenses has steadily deteriorated within a week since 2012 (2012:2.7; 2014:2.1;
2016:1.9).
The predictability of government intervention (for example, the collection of taxes and
the application of government regulations) for new and growing enterprises is still valued above
average and has remained stable since 2012 (2012:3.4; 2014:3.4; 2016:3.4). By international
standards, Austria has improved its position in this area. The construct "general government
policy" by EU comparison. Although Austria is rated on average on a similar rate to the previous
year, a pre-retraction in the ranking with other EU countries is visible.
In the current start-up policy, a comprehensive strategy for the start-up scene has been
developed. This includes improvements in terms of financing – which in turn includes reform of
the tax and tax burden – as one of the most important areas of action and includes the new legal
form of the SME Finance Company (MiFiG). For private investors, the provision of venture
capital to small and medium-sized enterprises is more attractive, as MiFiG allows a tax
exemption for distributions (up to 15,000 euros). (BMWFW, 2016)
Entrepreneurial Education and Training
In the constructs of this thematic block, experts will consider the entrepreneurial
education of the primary and secondary education of the school system, as well as
entrepreneurial education in continuing vocational training and higher education.
In the field of entrepreneurial education, particular attention will be paid to creativity,
self-employment, initiative, business models and business planning, legal and financial aspects
of business start-ups, business fundamentals. And the functioning of the market economy, but
also to the handling of risks. Entrepreneurial education in primary and secondary education (1.4)
is considered problematic by experts. In comparison, entrepreneurial education is "Abound
education and training (VET) and at universities (2.9), but are subject to a downward trend since
2012 (2012:3.1; 2014:3.0; 2016:2.9). This is also evident when looking at the individual
statements in this construct. Entrepreneurial education and training in the VET and higher
education sector is rated far more positively. Nevertheless, most individual statements show a
negative trend in valuations for entrepreneurial education and training over the last few years.
In addition, there is a moderate level of business and management training (2.8) and
appropriate catching up needs at universities and colleges of applied sciences (2.6) can be seen
from the opinions of experts.
In the field of entrepreneurial training in the adult sector in terms of adequate preparation
for the creation and growth of new companies, there have been clear differences since 2012
(2012:3.7; 2014:3.4; 2016:3.2).
In addition, below-average evaluations of business and management training (2012:3.0;
2014:3.0; 2016:2.8), the promotion of creativity, self-employment and self-initiative in schools
(2012:1.9; 2014:1.6) and the school-based imparting of knowledge about the functioning of the
market economy (2012:1.8; 2014:1.7; 2016:1.4) towards a slight deterioration of this framework
in Austria. There is still room for improvement for technical colleges and universities in the area
of preparation for the creation and growth of new businesses (2012:2.5; 2014:2.7; 2016:2.6).
In comparison, experts believe that entrepreneurial education in primary and secondary
education is rather worse rated across Europe. It shows that Austria is rated worst in Europe
(1.4). In addition, it should be noted that the ratings in this construct for Austria have
deteriorated since 2012 (2012:1.7; 2014:1.7; 2016:1.4). The Netherlands and Greece have
improved particularly over the last few years. It is also apparent that entrepreneurial education
and training in primary and secondary education in the United Kingdom is considered more
negative compared to previous years (2012:2.4; 2014:2.4; 2016:1.8).
The lack of entrepreneurial education in primary and secondary education, already
documented in the GEM Report 2007, runs through the results of the last few years and is
underlined here once again.
The focus here is on the promotion of creativity, initiative, risk-taking and entrepreneurial
factual knowledge, which have been tackled by the introduction of the competence-oriented
education plan. The aim is to integrate multidisciplinary skills and project-oriented work into the
classroom. (BIFIE, 2011) However, integrating entrepreneurial skills into teaching is not a
specific objective of the education plan.
In the tertiary sector, the inclusion of entrepreneurial skills such as entrepreneurship and
management. Here, interconnections within universities are used and a wide range of courses are
used. In addition, founders and foundation centers at universities support start-ups and spin-offs.
There are equally positive things to report from the adult and vocational training sector.
Offers for company founders in order to improve or acquire competencies are regularly
expanded or supplemented by numerous providers.
 Numerous projects of the EU's Lifelong Learning and Erasmus + funding programs
already provide important approaches to develop or strengthen entrepreneurial orientation and
skills for entrepreneurial action. To sum up, the rather poor results in entrepreneurship education
in primary and secondary education across Europe require greater joint efforts in order to
increase creativity, independence and Innovative thinking.
Level of R & D Transfer
In the "R & D Transfer" construct, experts will be interviewed on the transfer of
knowledge and technology between research institutions and companies, as well as access to the
latest technologies and support in this area.
Experts assess the availability of state subsidies to acquire the latest technologies on an
above-average basis (3.2). Knowledge and technology infrastructure (2.9) and support for
researchers in implementing new ideas (2.9) are rated well on average.
The availability of new technologies for new or growing companies (2.5), equal access to
new technologies for new or growing enterprises compared to large incumbents (2.4) and R & D
transfer between universities and public companies Research institutions and new or growing
companies (2.6) are considered by experts to be rather below average. Although the "R & D
transfer" construct in Austria has been consistently receiving stable ratings since 2007,
differences in the individual statements of this topic block can still be seen.
According to experts, the knowledge and technology infrastructure for building world-
class technology companies in at least one sector remains on average (2012:3.3; 2014:2.9;
2016:2.9) and is thus on the same level. Level like 2014. Similarly, the performance of the latest
technologies is assessed by new and growing companies in a stable manner (2012:2.5; 2014:2.5;
2016:2.5) and still has potential for improvement.
In most European countries surveyed, the level of R & D transfer is valued below
average. Only Switzerland (3.4), the Netherlands (3.2) and Luxembourg (3.1) are above the scale
center. Austria is in 7th place with 2.8. Croatia (1.7), Bulgaria (1.9) and Slovakia (2.0) were
rated worst.
The Federal Government's FTI strategy aims to increase performance in research,
technology and innovation by 2020 in such a way that Austria is entering the "Innovation
Leader" group. Progress can be seen from Austria's position in international innovation rankings
and is carried out annually by the Council for Research and Technological Technology
development collected and published as a whole.
According to a preliminary assessment of the EU Commission's innovation ranking, the
European Innovation Scoreboard, Austria was in tenth place in EU comparison in 2016. As a
result, the gap with the Innovation Leader Group narrowed markedly in 2016, but is still
considerable. (BMWFW, BMVIT, 2016) The R & D transfer between business and science is
also viewed very positively over the years in the Global Competitiveness Report 2015/16
(ranked 24th). The quality of existing research institutions (ranked 25th) and the R & D editions
(14th place) of Austrian companies also confirm the positive impressions of the experts. (World
Economic Forum, 2016). Austria also tended to improve in other innovation rankings, but is still
lagging behind the frontrunners.
Economic and Services Infrastructure
The economic and service infrastructure describes factors related to Austrian companies '
access to subcontractors, suppliers, advisory services, and legal and banking services.
In Austria, economic and service infrastructure is valued at an above-average rate (3.5).
 The availability of consultations on legal and accounting issues (4.1), high-quality
banking services (3.4), subcontractors, suppliers and consultants in high quality (3.4) for new
and growing companies rated very positively by experts.
On the other hand, the performance of subcontractors, suppliers and consultants for new
and growing companies is the only element that is rated below average (2.7).Compared to 2014,
the economic and service infrastructure in Austria is rated slightly better, but a little worse
compared to 2012 (2012:3.6; 2014:3.4; 2016:3.5).
Austria is in absolute top ground in comparison with the framework "economic and
service infrastructure" in the EU context. Austria (3.5) is ranked among the best here along with
Switzerland, the Netherlands and Luxembourg (3.5 each). Experts rate the economic and service
infrastructure better only in Latvia (3.7). Poland (2.7), Italy (2.6) and Croatia (2.6) are rated the
worst by EU standards. Compared to 2014, significant changes are noticeable for Hungary
(2014:3.3; 2016:2.9) and Sweden (2014:3.3; 2016:3.0).
Experts in the subject of economic and service infrastructure rate professional advice on
legal issues particularly positively. It should be noted that law and commercial law are among
the five most popular studies in Austria. In 2016, Austria counted 6,100 lawyers and about 2,200
lawyers. (Bar Association, 2016)
The business environment in Austria is also well classified in international studies and
improved by two places since 2015. As a result, Austria is currently ranked 12th in international
comparison. (World Economic Forum, 2016b)
This year's GEM results confirm in principle these positive assessments of the economic
and service infrastructure, but the performance for business-related services is more strongly
flawed than in previous years.
Openness of the Market
The theme block "Open of the Market" describes aspects of market openness and consists
of the construct "internal market hurdles," such as difficulties and costs of entering the market as
well as the construct "internal market dynamics."
Internal market hurdles are described by aspects of market openness such as barriers and
costs of market entry or the existence of cartels. Internal market dynamics for goods and services
relate to consumer and corporate markets in the country.
Looking at the individual statements on market dynamics, it can be seen that both
statements have a higher value than in 2014. The changes in business-oriented or end-consumer-
oriented markets (2012:2.6; 2014:2.5; 2016:2.6) adapt to those evaluations from 2012. Experts '
assessment of changes in consumer goods and services markets (2012:2.4, 2014:2.4; 2016:2.6) is
slightly better than in previous years.
Within the construction of the internal market hurdles, there has been a slight downward
trend in valuations since 2012. Although all individual statements are assessed more positively,
the performance of the market entry (2012:3.1:3.1 2014:3.1; 2016:2.9) is responsible for the
worse overall valuation of this design.
Consistent enforcement of antitrust legislation (2012:3.3; 2014:3.4; 2016:3.5) and market
entry for new and growing companies without being unfairly discouraged (2012:3.4; 2014:3.3;
2016:3.5) are used here compared to past Survey years better rated.
Austria (3.2) is ranked third after Estonia (3.4) and the Netherlands (3.7). The strongest
internal market hurdles are perceived by experts in Croatia (1.9), Bulgaria (2.3) and Slovakia
(2.5).
Physical Infrastructure
 The thematic block of the "physical infrastructure" business framework covers the access
and costs of new companies to utility services (gas, water, electricity) as well as communication
options (telephone, internet, etc.)
Experts rate this construct very positively in Austria (4.5). This is also reflected
throughout all individual statements. The access and performance of gas, water and electricity as
well as the usual communication possibilities are always assessed above average.
Compared to surveys carried out in previous years, physical infrastructure assessments
have improved particularly since 2014. Access and costs to utilities services have even improved
beyond those from 2012, after poorer valuations in 2014. (Access: 2012:4.3; 2014:4.1; 2016:4.6;
Cost: 2012:4.2; 2014:4.1; 2016:4.5). Communication opportunities have also reached highs.
(Access: 2012:4.3; 2014:3.7; 2016:4.3; Cost: 2012:4.2; 2014:4.3; 2016:4.6)
Austria moved closer to the top of the ranking since 2014. Currently, only the
Netherlands (4.7), Estonia (4.7), Switzerland (4.6) and Finland (4.6) are rated better. Overall, the
evaluations of experts differ only very little and the results are above average for the first time in
Europe.
These results are confirmed by existing reports such as the Global Competitiveness
Report and assessed as very satisfactory. The ranks discussed in the following are the result of a
total comparison of 140 countries and therefore clearly confirm Austria's well-developed
infrastructure. The general infrastructure in Austria ranks 8th in the report of 2016/17
(2014/15:7)
Particularly good, but some ranks worse than in previous years, the rail and road network
(2014/15:11th place; 2016/17: Rank 10th) and its quality (2014/15: Rank 3; 2016/17: Rank 6).
Socio-Cultural Standards
The entrepreneurial framework in this section deals with socio-cultural norms in the form
of a constructing. The influence of cultural norms, certain values and social aspects on
entrepreneurship in Austria is assessed in an aggregate form.
Overall, this topic is rated rather poorly by experts in Austria (2, 3). It illustrates that all
individual statements within design are also rated below average.
The statements that the nationwide culture promote a willingness to take on
entrepreneurial risk (2.0) or self-reliance, autonomy and initiative (2.4) are the least accepted.
Better (already close to the center of scale), nationwide culture is seen as a supporting aspect of
creativity and innovation (2.8). The aspect that cultural influences favour the achievement of
individual success through personal efforts (2, 7) is similarly closely evaluated.
Compared to 2014, the assessment of socio-cultural norms has changed little (2012:2.4;
2014:2.5; 2016:2.3) and is at a relatively low level with slight negative deviations from previous
survey years. The poorer assessment can be seen particularly with prevailing values such as self-
employment, autonomy and initiative (2012:2, 3; 2014:2.4:2016:2.1).
The avoidance of uncertainty among Austrians is not new and manifests itself in a
relatively pronounced fear of entrepreneurial failure. The opinions of experts confirm these study
results in which Austrians are characterized by risk aversion and the careful planning of the
future. It inhibits entrepreneurial dynamism in the country. Various initiatives are already trying
to strengthen entrepreneurship throughout Europe and also aim to anchor entrepreneurial aspects
more socially and culturally in the population. These must be pursued and expanded, although a
change in socio-cultural norms cannot take place in the short term.
Joint efforts by politicians, educational institutions and society can be beneficial here.
COLOMBIA
OVERVIEW
Colombia is bordered on the northwest by Panama, on the east by Venezuela and Brazil,
and on the southwest by Peru and Ecuador. Through the western half of the country, three
Andean ranges run north and south. The eastern half is a low, jungle-covered plain, drained by
spurs of the Amazon and Orinoco Rivers, inhabited mostly by isolated tropical-forest Indian
tribes. The fertile plateau and valley of the eastern range are the most densely populated parts of
the country.
Colombia shares borders with five neighboring countries. In order of shared border
length, these are: Venezuela (2,050km), Brazil (1,643 km), Peru (1,496 km), Ecuador (590 km),
and Panama (225 km).
Colombia is a Unitary Republic. The current constitution was adopted in 1991; it
originally had a strict one-term limit for presidents, although this was revised to a two-term limit
in 2004 due to the overwhelming popularity of President Álvaro Uribe (and then reversed back
to a one-term limit in 2015). Other major changes since the adoption of the constitution is the
adoption of an adversarial model for Colombia's courts. The adversarial model will be most
familiar to people who have watched courtroom dramas, where a prosecution and a defense
argue their respective cases before an impartial court. This is in contrast to other models where
the court takes an active role in the investigation.
Uribe and his party, the Democratic Center, continue to be leading forces in the
Colombian political landscape. The current president, for example, comes from the same party.
What might prove the biggest change to the current balance is the reformation of militant rebel
group FARC (Fuerza Armada Revolucionaria de Colombia, the Revolutionary Armed Forces of
Colombia) into the communist political party FARC (Fuerza Alternativa Revolucionaria del
Común, the People's Alternative Revolutionary Force). A major part of Uribe's popularity came
from his unyielding operations against FARC. The communist party has been guaranteed
electoral seats through 2026 as part of the peace agreement that ended their military actions.
In recent years Colombia (much like South Korea since the 1990s) has undergone major
dedicated efforts to export their pop culture around the globe. In the early 2000s the government
pass legislation encouraging the development of the country's film industry. Colombia hosts the
Cartagena Film Festival, the oldest film festival in Latin America. Popular music is probably the
country's best known export (with musicians like Shakira, Carlos Vives, and Juanes). Traditional
music and classical music are also widely regarded.
As the home of the continent's oldest Spanish language academy, it should come as no
surprise that Colombia is a major literary country. Colombia's national body of literature
stretches back thousands of years, beginning with (still accessible!) long form poetry from the
country's different indigenous groups. Colombian authors produced works of prose and poetry
through the colonial era onward. Colombia's most famous author is Gabriel García Márquez,
whose body of work through the 1970s earned him a Nobel Prize for Literature in 1982. His
novel 100 Years of Solitude is widely read around the world.
Colombia's visual arts scene has been garnering attention in the past few decades.
Colombia's pre-Columbian art has always stood out, but during its tenure as a colony of Spain
Colombia often followed the lead of European artists in terms of style. Colombian Baroque art
mostly borrows from Spanish Baroque art, and so on. But since the 1950's, Colombian artists
(especially those working in three dimensions) have made many bold, innovative leaps with their
techniques and aesthetics. Art lovers will find plenty of interest at Colombia's museums and
heritage sites.
GLOBAL ENTREPRENEURSHIP IN COLOMBIA
 Structural conditions of the environment for business activity The GEM model has
conceptualized since its inception that there is a relationship between the structural conditions of
the environment (Entrepreneurial Framework Terms-EFC-), the behavior of the
Entrepreneurship, business dynamics and economic growth. The favorable level of these
conditions (EFC) influences the existence of business opportunities, the capacity and the
business preferences, the orientation of the entrepreneurs and the companies and therefore the
business dynamics.
To measure these conditions, GEM uses national experts in 9 basic areas and through the
National Survey of Experts (NES) collects information on the status of these conditions. In each
condition several factors are measured using a Likert scale of 5 points in which 1 means that the
statement according to the experts is completely false and 5 means that the Stated according to
the experts is completely true. Averaging the ratings assigned to each factor achieves a
favourability index of the structural condition on a scale of 1 to 5, where 1 indicates that the
conditions of that factor are not the best for business development and 5 that are excellent.
Financial support
The first structural condition of the environment for the development of business activity
is financial support. In this condition, the national experts expose their perceptions about the
financial support that nascent/new companies receive, with regard to several factors: availability
of own capital, availability of means of financing belonging to Private financial institutions,
availability of financing from informal investors, availability of sufficient risk-capital offer,
availability of financing during the public sale offer process.
In this area we recommend:
• Review all funding programs to assess the degree to which they are meeting the needs
of new entrepreneurs and growing companies, including the number of entrepreneurs receiving
support in relation to those who demand financing, and accessibility for women entrepreneurs.
The goal should be to ensure that new companies and nascent have access to funding to properly
capitalize their businesses and finance their activities, including the acquisition of technology.
• Improve access for new entrepreneurs with high-risk innovators, for entrepreneurs’
young people, and for women entrepreneurs to finance their business initiatives by the national
financial system.
Government Policies
The second structural condition of the environment for the development of business
activity is government policies. In this condition, the national experts expose their views on the
validity of the following statements: Government policies (e.g. public bidding or procurement)
typically favour new enterprises; Support for new and growing companies is a priority of
national government policy; Support for new and growing companies is a priority of
departmental government policy; The new companies can carry out all administrative and legal
procedures (obtaining licenses and permits) in about one week; Taxes and fees are NOT a barrier
to creating new businesses and boosting the growth of the company in general; Taxes, fees and
other government regulations on the creation of new enterprises and the growth of the
established ones are implemented in a predictable and coherent manner; Carrying out
bureaucratic paperwork and getting the licenses that the law makes to develop new and growing
businesses are NOT extremely difficult. This condition has a tendency to improve, but it is quite
lacking to reach the intermediate level (3.0).

Government Programs
 The third structural condition of the environment for the development of business activity
is government programs. In this condition, national experts expose their views on the validity of
the following statements: information on A wide range of government aid to the creation and
growth of new companies by contacting a single public body (one-stop shop); The scientific and
incubator parks provide effective support for the creation of new enterprises and the
development of those that are growing; There are an adequate number of programmes that
encourage the creation and growth of new enterprises; Professionals working in government
agencies to support the creation and growth of new companies are competent and effective;
Almost everyone who needs help from a government program to create or grow a Company, find
what it requires; Government programs that support new and growing companies are effective.
A graph indicates that there has been continuous improvement in this condition and that it
is already reaching 3 on the scale from 1 to 5.
Education and Training
The fourth structural condition of the environment for the development of business
activity is education. In this condition, the national experts have expressed their views on the
validity of the following statements: in primary and secondary education, creativity, self-
sufficiency and personal initiative are encouraged; In primary and secondary education,
sufficient and adequate knowledge is provided on the principles of market economy; In primary
and secondary education, sufficient attention is devoted to entrepreneurship and enterprise
creation; Universities and higher education centres provide good and adequate preparation for
the creation of new enterprises and the growth of the established ones; Training in Business
administration and Management provides an adequate and quality preparation for the creation of
new companies and the growth of the established ones; Postgraduate programmes provide
adequate and quality preparation for the creation of new companies; The systems of vocational
training and continuous training provide adequate and quality preparation for the creation of new
companies and the growth of the established ones.
It has a very mild improvement in the 8 years. A review of the design and enforcement of
law 1014 and a thorough adjustment to include business education and to imbue the educational
system with its role in business dynamics are necessary.
Transfer of Research and Development
The fifth structural condition of the environment for the development of business activity
is the transfer of research and development results. In this condition, national experts expose
their views on the validity of the following statements: New technologies, science, and other
knowledge are transferred efficiently from universities and research centers To new and growing
companies; New and growing companies have the same access to new research and technologies
as large and established ones; New and growing companies can afford the latest technologies;
Government subsidies and grants to new and growing companies to acquire new technologies are
adequate and adequate; Science and technology enable the creation of globally competitive
technology-based enterprises at least in a specific field; There is sufficient support for engineers
and scientists to be able to economically exploit their ideas through the creation of new
companies.
In this field, the results are unfavourable (graph 38), since there is no trend towards
improvement, and if collates with the data of the characteristics Companies ' technology, it can
be identified how the lack of this structural condition causes companies not to access more
modern technologies.

Commercial and Professional Infrastructure

 The sixth structural condition of the environment for the development of business activity
is the commercial and professional infrastructure. In this condition, national experts present their
views on the validity of the following statements: There are sufficient suppliers, consultants and
subcontractors to support new and growing enterprises; New and growing companies can assume
the cost of subcontractors, suppliers and consultants; New and growing companies have easy
access to good suppliers, consultants and subcontractors; New and growing companies have easy
access to good legal, employment, accounting and tax advice; New and growing companies have
easy access to good banking services (open current accounts, foreign trade transactions, letters of
credit and the like). This condition, as indicated in graph 39, has not improved and remains
below average (3).
Opening of the Internal Market
The seventh structural condition of the environment for the development of business
activity is the opening of the internal market. In this condition, national experts expose their
views on the validity of the Following statements: Consumer goods and services markets
drastically change from one year to the next; The markets of goods and services for companies
change drastically from one year to the next; New and growing companies can easily enter new
markets; New and growing companies can assume market entry costs; New and growing
companies can enter new markets without being disloyally blocked by established companies;
Anti-monopoly legislation is effective and enforced.
Access to Physical Infrastructure
The eighth structural condition of the environment for the development of business
activity is access to physical infrastructure. In this condition, national experts expose their views
on the validity of the following statements: Physical infrastructure (roads, utilities,
telecommunications, wastewater treatment, etc.) provides good support for New and growing
enterprises; It is not very expensive for a new or growing company to access communication
systems (telephone, Internet, etc.); A new or growing company can provide telecommunications
services (telephone, Internet, etc.) in about one week; Newly-created and growing companies can
cope with the costs of basic public services (gas, water, electricity, etc.); A new or growing
company can access (a) Basic public services of quality (gas, water, electricity, sewerage, etc.) in
about one month.
This is the structural condition of the environment that has received the best ratings in
these 8 years, although it shows a declining trend that needs to be corrected.
Social and Cultural Norms
The ninth structural condition of the environment for the development of business
activity are social and cultural norms. In this condition, national experts expose their views on
the validity of The following statements: social and cultural norms support and value individual
success achieved through personal effort; Social and cultural norms emphasize self-sufficiency,
autonomy, and personal initiative; Social and cultural norms encourage the risk-taking of
business activity; Social and cultural norms stimulate creativity and innovation; Social and
cultural norms emphasize that it must be the individual (more than the community) responsible
for managing his own life.
This structural condition in general has been a little, but it does not show a process of
improvement.

COLOMBIAN BUSINESS ECOSYSTEM

 Each characteristic of the business ecosystem is measured through several statements,
using a 5-point Likert scale, in which: 1 means that the statement, according to the experts, is
completely false and 5 means that the statement is completely true.
According to National Experts, the factors that hinder business activity in Colombia in
2016 are:
1. Lack of cohesion between objectives, policies, government programmes for the support of
entrepreneurs
2. The dismantling of programs that do not know the life cycle of the entrepreneur
3. Lack of a risk-oriented culture and innovation
4. Lack of shared vision at the local, departmental and national levels
5. Lack of entrepreneurial training at all levels of education
6. Lack of training in entrepreneurship in schools
7. Culture of individuality of entrepreneurs
8. Lack of accompaniment to entrepreneurs in post-birth stages
9. Unfair competition
10. High costs of physical infrastructure
11. Difficulty in accessing funding
12. The lack of bank loans with preferential rates for employers
13. Excess bureaucracy and tax burden
According to National Experts, the factors that drive business activity in Colombia in 2016
are:
1. Government policies and programs that drive business development
2. Strengthening of university-business relations
3. Entrepreneurial Education in universities
4. Free Trade agreements
5. Internet access
6. Improvement of the country's road, port and airport infrastructure
7. Financial and accompaniment contests and incentives
8. New entities that support business development
9. Export Promotion Processes
10. Cultural Persistence
11. New social and political situation by peace accords
12. Development of new economic sectors
According to National Experts, recommendations for improving business activity in
Colombia in 2016 are:
1. To generate public policies of national, regional and municipal order that encourage the
creation of company.
2. Generate more flexible and affordable financing mechanisms for entrepreneurs.
3. To reduce the bureaucratic procedures for the formalization of the companies
4. Greater accompaniment in the processes of business strengthening
5. Encourage creativity, innovation and risk-taking in schools and universities.
6. Promote in the media the presence of successful stories of entrepreneurs and testimonies
7. Continue the improvement of road infrastructure, especially in the roads leading to ports and
neighboring countries.
8. Improving business education in schools
9. Designing and executing business development programs with a medium and long term plan
10. Design attractive tax policies to encourage business development
11. Establish selective taxes by stage of development and type of company.
12. Strengthen the work done by regional entrepreneurship networks
13. Generate a culture of "Inter-business cooperation"
14. Create organizations aimed at opening new markets for new companies
15. Improve the access of entrepreneurs to the different financing mechanisms
16. Affordable costs for new companies to have access to new technologies
17. Support to OTRIs to generate SpinOut in academia and support processes to the business
sector for SpinOff
18. Accept that Start Up can be state providers
19. Betting on post-conflict and the distribution of land

“It's not just about giving people "fish", it's not about just teaching them to "fish." IT'S ABOUT
TEACHING YOU HOW TO BRING THE "FISH" TO THE MARKET, THAT IS, TO THE
CUSTOMERS. In other words, it is about teaching them to be entrepreneurs of their "fish" and
to create company with them.”