Transcript CyEC 2003

CyEC 2003 Conference
Professor Georgios I. Doukidis
Athens University of Economics and Business
TANEO (New Economy Development Fund)
December 17 2003, Cyprus
Factors that encourage and support
Entrepreneurial Activity recently
 Technological Factors / Technological Progress
• Cause new products, enterprises and sectors
 Economic Factors / Increase of consumers’ demand
• Increase of income, living standards, available financing
 Demographic Factors / Development of New Service
Companies
• Ageing of population, families with double incomes etc.
 Psychological Factors and Culture
• Alternative model to large enterprises, social norms that
support self-sufficiency (i.e USA)
 Survival Factors
• In less developed economies (i.e Uganda)
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
2
CyEC 2003, 17-12-2003
ALL Countries
US:U.S.A.
GR:Greece
Total Entrepreneurial Activity (TEA) 2003
by Global Entrepreneurship Monitor (GEM)
Prof. G. I. Doukidis
3
GR:Greece
ALL Countries
Necessity-Based Entrepreneurial Activity - 2003
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
4
High Potential Entrepreneurship
High Potencial Enterpreneurship
35,0
30,0
25,0
20,0
15,0
10,0
TEA (Non High Potential)
• new markets
CyEC 2003, 17-12-2003
• new jobs
Uganda
Venezuela
Agentina
Chile
New Zealand
Brazil
United States
Australia
China
Iceland
Ireland
Canada
Norway
Switzerland
United Kingdom
Spain
Greece
Denmark
Germany
Singapore
South Africa
Sweden
Slovenia
Netherlands
Hong Kong
0,0
Finland
5,0
TEA (High Potential)
• exports oriented
Prof. G. I. Doukidis
5
Entrepreneurs’ Expectations for Job Creation
by Educational Attainment (2001)
- 2001
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
6
Conditions that play an important role in
promoting entrepreneurial activity in an economy
 Government Policies
• High priority in supporting new firms; quick acquisition of
permits & licenses; amount of taxes; predictable way of
new regulations
 Education and Training
• Encourages creativity, self-sufficiency & personal initiative;
adequate attention to entrepreneurship and new-firm
creation; special courses and programs; hybrid focus
 Cultural and Social Norms
• High value on self-sufficiency, autonomy, individualism and
personal initiative; do not rely heavily on government;
expectation to change many jobs; prefer to work for new
firms
 Financial Support
• Sufficient equity and debt funding; government subsidies;
private individuals, Venture Capitalists and IPOs are
important financial sources
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
7
Government Policies:
United States vs. Other GEM Countries
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
8
Education and Training:
United States vs. Other GEM Countries
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
9
Cultural and Social Norms:
United States vs. Other GEM Countries
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
10
Financial Support:
United States vs. Other GEM Countries
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
11
ΤΑΝΕΟ (New Economy Development Fund)
 TANEO is a Fund of Funds investing in new Venture
Capital Funds that focus in innovative businesses
 As it is set out in Article 28 of Greek Law 2843/2000,
which provides for the creation of TANEO, “The
purpose of the company is the minority
participation in venture capital organisations”.
 The EC has decided (Sept. 2002) that the aid
scheme involved is compatible with the EC treaty
 Selection of VCs is based on commercial criteria
 Financing
• €45 mil. from the Hellenic Republic
• €105 mil. Private/Institutional through a Notes issue
(guarantee provided by the Hellenic Republic)
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
12
ΤΑΝΕΟ (New Economy Development Fund)
 What is NOT ΤΑΝΕΟ
• It is NOT a venture capital fund
• Therefore, it does NOT invest directly in small-medium
innovative companies
 What is ΤΑΝΕΟ
• It invests ONLY in venture capital funds
– It undertakes up to 50% of their capital
• which invest in Greek, innovative, small and smallmedium companies
 So
• TANEO does NOT INTERFERE with the investment
decisions made by the VC Funds
• It sits in investment committees WITHOUT the right to
vote but with Veto power if decisions to invest are in
breach of TANEO’s investment guidelines
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
13
The Upgraded Role of Universities
 Social Institution
• The provision of general education, the growth of
personality and the transmission of knowledge with the
right wisdom
 Developmental Institution
• Contribution in the configuration of responsible people,
with the ability of scientific, social, cultural and political
comprehension
 Utilitarian Institution
• Full education for a scientific and professional career
after graduation
Creation of New Leaders
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
14
Entrepreneurship at Undergraduate Level
Full Semester - AUEB
 Practical Training of students for one semester in
real working environments
 Every Friday they return to University for two
courses (and practical assignments)
• Business Plan and business strategy
• Entrepreneurship and Innovation
 Participation in enterprising competitions,
workshops with managers and entrepreneurs,
business games, etc.
Difficult project with many challenges
150 students, 100 companies, 10 professors F.T.
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
15
“Entrepreneurship and Development
of New Enterprises” Graduate Program
 Introduction to Entrepreneurship
 Legal and Financial Aspects of Entrepreneurial
Ventures
 Innovation and Creativity
 Strategic Business Partnerships
 Developing a Successful Business Plan
 Managing a Family Owned Business
 Doing Business in the Balkans Region
 Leadership
Dec. Sciences MSc of the
Athens University of
 Managing of Change
Economics and Business
 Knowledge Management
CyEC 2003, 17-12-2003
Prof. G. I. Doukidis
16
CyEC 2003 Conference
Professor Georgios I. Doukidis ([email protected])
Athens University of Economics and Business
TANEO (New Economy Development Fund)
December 17 2003, Cyprus