Entrepreneurship Policy

Strengthen the institutional framework:

The way entrepreneurship policies are implemented is as important for success as the right
choice of instruments. The first step is to designate a lead institution in charge of
entrepreneurship development. This can be a working group, ministry or an agency in the
government that would be assigned responsibility for all phases necessary to develop a national
entrepreneurship development strategy, from defining the overall objectives to implementation
and monitoring. Institutional focal points can then be established which could help coordinate
the implementation of entrepreneurship policies and facilitate links with other key actors and
stakeholders. Support for new enterprises should be provided in a business-like and customer-
focused manner. It is important that service providers understand the problems of starting a
business and that their responses are quick. This has implications for the way such agencies are
organised, the personnel they recruit and their internal incentive systems.
Entrepreneurship development depends on many interdependent factors that cannot be
influenced by one single institution. Such a coordinated approach requires that mandates,
competences and responsibilities are clearly defined and agreed among all institutional
partners. The coordination mechanism can be initiated by establishing a public-private working
group or advisory council and can later take the form of a fully institutionalized agency.
While the government needs to be part of such a mechanism, it is preferable that the institution,
council or working group is not dependent on the political leadership of the moment, so as to
ensure sustainability. The formation of public private support networks should also be
supported at the sub-national level, as local networks may provide solutions for start-up
companies that are tailored to local demand conditions and delivered through more
personalized trust-based relationships. The private sector should have voice in, and ownership
of, the entrepreneurship development strategy and be actively involved at all levels from policy
design to implementation. Business people provide the role models for future entrepreneurs,
they have practical experience in developing and implementing business plans, and they know
how to overcome practical difficulties. Also, established companies may in future become
business partners of start-ups. In practical terms, representatives of private enterprises, business
associations, business media, financial institutions, networks of business mentors and the like
should be involved in formulating a national strategy. Engaging other stakeholders from
academia, NGOs and civil society is also critical (box 5).
There are multiple actors in the entrepreneurial ecosystem, and it is important for policymakers
to differentiate between the policies and actions that need to be public sector-driven and those
programmes and actions that would be run more effectively by the private sector or other
stakeholders, such as academia and non-governmental organizations. Their expertise and
resources can be used, for example, to support advertising activities through business media or
coaching of start-ups by experienced business people.
Entrepreneurship Policy