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Chapter 4 National conditions for entrepreneurship: trends in Denmark and comparisons to other societies How are the national conditions for entrepreneurship in Denmark? More specifically, this chapter answers the questions, Are cultural and institutional conditions in Denmark improving or deteriorating? How does the framework in Denmark compare to the framework in other societies? Entrepreneurship does not exist in a vacuum. Entrepreneurship is an activity that is organized in society and is shaped by conditions prevailing in the society. Entrepreneurial activity in society flourishes under some conditions and vanishes under other conditions (Morrison 2000; Shane 1992, 1993). The conditions in society affecting entrepreneurship are denoted the framework conditions in the society. The framework conditions are subject to intervention by the authorities in society, indeed, in recent decades they have become a focus for policy-making (Schøtt and Jensen 2008). Some framework conditions are in the culture of society, notably in its values and knowledge. Other framework conditions are in the social institutions of society, notably in its supportive arrangements, mobilization and allocation of resources, and regulation of the market. The framework conditions in society are numerous and only partly discerned, and their effects are even less known. Here we examine 14 framework conditions in society, namely 4 cultural conditions and 10 institutional conditions, Figure 4.1. These conditions are measured in each country participating in GEM. A national panel of experts on entrepreneurship in the country is surveyed and assesses each condition on a scale from a low of 1 to a high of 5 (Chapter 2; Schøtt, 2006a:20-21, 64-95; 2007:33-49; 2008:21-32). Annual assessments of conditions in Denmark and other countries enable us to track changes over time in Denmark and to compare Denmark to other countries. The up-to-date measures of framework conditions, in so far as they affect future entrepreneurship, are actually leading indicators of entrepreneurial activity. Figure 4.1 Framework of culture and institutions in society CULTURE Education in entrepreneurship during schooling Skills in entrepreneurship in the population Individualism as a value in culture Esteem of the vocation of entrepreneur ENTREPRENEURSHIP INSTITUTIONS Financial resources for entrepreneurship Government policies for entrepreneurship Public programs for entrepreneurship Technology transfer to entrepreneurship Commercial and legal infrastructure Internal market openness to new firms Physical infrastructure for new firms Intellectual property rights Support for growth-entrepreneurship Opportunities for business 23
In this chapter, we shall examine each condition, track its changes in Denmark and compare Denmark to other developed countries, and then, in the next chapter, we shall estimate effects of the conditions upon entrepreneurial activity. The extent of entrepreneurial education in Denmark has changed, Table 4.1. The conveyance of entrepreneurial knowledge and skills has tended to increase over the years (for specific educational initiatives, see Erhvervs- og Byggestyrelsen 2008: 69-71). Education in entrepreneurship Education here refers to the formal instruction, all the way up through higher education, that provides knowledge and skills for performing the entrepreneurial role (Schøtt, 2006a:68, 2007a:35, 2008:29). This kind of education in entrepreneurship in Denmark is assessed annually by asking a panel of experts to ascertain truthfulness of each of the following statements, – In Denmark, teaching in primary and secondary education encourages creativity, selfsufficiency, and personal initiative. – In Denmark, teaching in primary and secondary education provides adequate instruction in market economic principles. – In Denmark, teaching in primary and secondary education provides adequate attention to entrepreneurship and new firm creation. – In Denmark, colleges and universities provide good and adequate preparation for starting up and growing new firms. – In Denmark, the level of business and management education provide good and adequate preparation for starting up and growing new firms. – In Denmark, the vocational, professional, and continuing education systems provide good and adequate preparation for starting up and growing new firms. Each expert ascertains the truthfulness of each statement in terms of ’Completely false’, ’Somewhat false’, ’Neither true nor false’, ’Somewhat true’ and ’Completely true’. The assessment is quantified on a scale from 1 to 5. The assessments are then averaged across the experts and averaged across the six statements for a measure for the year. With measurement taken in 2008 and preceding years we can track recent changes in the extent of education in entrepreneurship. Table 4.1 Education for entrepreneurship in Denmark Annually from 2002 to 2008 2002 2003 2004 2005 2006 2007 2008 2,3 2,2 2,3 2,3 2,4 2,5 2,4 Where does this entrepreneurial education bring Denmark in comparison to other countries? The entrepreneurial content in education is likewise assessed in the other countries participating in GEM. In the seven years from 2002 to 2008, the framework conditions have been assessed in 39 other developed countries listed in Chapter 2. A summary measure that reduces year-to-year fluctuations as well as emphasizes the most recent time is a weighted average, weighing the second year (2003) of measurement twice as much as the first year (2002), the third year (2004) three times as much as the first year, and so on up to the most recent year (2008), that is weighted seven times as much as the first year. This weighted average is used for comparing the framework conditions among the developed countries, Table 4.2 (and similar tables in the rest of this chapter). Entrepreneurial education is more extensive in several developed countries, notably Singapore, USA and Latvia. Among the developed countries, Denmark is far below the middle, 71% of the others are above and only 29% of the others are below. In short, although the entrepreneurial content in education in Denmark has been expanding, it is still far less than typical for the developed countries. 24
Page 1 and 2: Education, Training and Networking
Page 3 and 4: © Thomas Schøtt (and GERA for ite
Page 6: Contents Preface ..................
Page 9 and 10: skab i samfundet, både i Danmark o
Page 11 and 12: Figur B Entreprenørers ekspansivit
Page 14 and 15: Part 1 Introduction Chapter 1 Is en
Page 16 and 17: How is entrepreneurs’ innovativen
Page 18: ing years, in Denmark and in the ot
Page 21 and 22: The ex-owner-managers are those ans
Page 23: our survey counting new-business ow
Page 27 and 28: In short, although entrepreneurial
Page 29 and 30: - In Denmark, there is sufficient d
Page 31 and 32: Where is Denmark positioned compare
Page 33 and 34: - In Denmark, the markets for consu
Page 35 and 36: Table 4.24 Intellectual property ri
Page 37 and 38: The framework overall The framework
Page 39 and 40: provides ample opportunity (and, ty
Page 41 and 42: an arrow represents the magnitude o
Page 43 and 44: Figure 5.4 Plot of developed societ
Page 45 and 46: provided by a college or university
Page 47 and 48: Table 6.3 Training of people, durin
Page 49 and 50: Age and training Does training diff
Page 51 and 52: Chapter 7 People’s education, tra
Page 53 and 54: Table 7.4 Networking, by education
Page 55 and 56: Chapter 8 People’s vocation shape
Page 57 and 58: Table 8.4 Vocation of adults, by th
Page 60 and 61: Part 4 entrepreneurs Chapter 9 Entr
Page 62 and 63: Table 9.1 Education, by vocation Ad
Page 64 and 65: Table 9.7 Competency of entrepreneu
Page 66 and 67: Figure 9.2 Estimated effects among
Page 68 and 69: The response to each question can b
Page 70 and 71: Figure 10.2 Estimated effects upon
Page 72 and 73: entation, Table 11.1. Entrepreneurs
Page 74 and 75:
ed by regression (Table 11.6 in the
Page 76 and 77:
future. To measure such expectation
Page 78 and 79:
Growth-expectations and competency
Page 80 and 81:
Part 5 CONCLUSIONS Chapter 13 Expan
Page 82 and 83:
Figure 13.1 People’s vocation aff
Page 84:
Figure 13.2 Entrepreneurs’ expans
Page 87 and 88:
Table 5.4 Linear regression of nati
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Table 7.9 Logistic regression of ad
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Table 8.9 Logistic regression of ad
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very small. The estimated effects a
Page 95 and 96:
Table 12.6 Linear regression of gro
Page 98 and 99:
Bibliography Ahmad, N., and A. Hoff
Page 100 and 101:
myths. Paper for the 3 rd Internati
Page 102 and 103:
sættere i netværk” In Freytag,
Page 104 and 105:
National Teams in 2008 in Global En
Page 106 and 107:
Team Institution National Team Memb
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
111
Page 114:
Thomas Schøtt University of Southe
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