Cause & effect view for Entrepreneurship & Innovation
Hi to all,
If I may submit my personal view on the issue, the starting point is to understand which of the two terms used in this group title is the cause and which is the effect, leading to success, growth & job creation.
My experience, originating from several startup initiatives, involvement in FP & national R&D projects, has led me to conclude that the sequence is quite clear:
Entrepreneurship is a stand of life of the people we call entrepreneurs, either forced or aspired. The entrepreneurial motivation is always about making a difference in the society; local, national or global. A baker who opens a new bakery in the neighborhood is an entrepreneur, a new retailer who rolls out a franchise chain is an entrepreneur, a computer geek who starts a new web service is an entrepreneur.
If these entrepreneurs can manage to capture a market segment, local-national-global, then their differentiation in effect is a market innovation that has allowed them to attract customers. If the means that they have used to capture the market are based on proprietary technical knowledge (IP), then in effect we have technological innovation.
The sustainable nature of this path, as a result, will generate growth out of market competition and will generate new jobs in the new enterprises. Of course the level of entrepreneurship maturity & scale are the factors that determine the scale & size of the growth / job creation.
As a conclusion to this though, I would state that entrepreneurship is the cause, innovation is the effect of successful enterprise.
Now, how can one accelerate the result, i.e. growth & jobs, I believe is obvious. We need to create the conditions that will make more and more EU citizens turn towards entrepreneurship, ideally make it a fashion! The influence channels are known, they include formal education in schools & universities, media and social recognition.
Further to this, entrepreneurship must be open to whoever believes can manage to do it. The states / EU should remove any obstacles / red-tape that stand in this way. This includes taxation, for young SMEs and up to a specific level of revenues. Special state initiatives, like seed funding and mentoring should be available as an attractive alternative to unemployment benefits, again removed from usual red tape of state aid initiatives.
I hope my experience will be useful to the group!