high impact entrepreneurs
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Our economic future is in their handsTRANSCRIPT
1December 2012
HIGH IMPACT ENTREPRENEURS
Our economic future is in their
hands.
High-Impact Entrepreneurs
Aramex
Maktoub
Buenos AiresTech Network
Amman Tech Network
IstanbulTech Network
Top entrepreneurs are consistently influential in each city…
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Buenos AiresTech Network
Amman Tech Network
IstanbulTech Network
And, they touch the majority of other firms in the network.
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Sold to Banco Santander for $750M in 2000
Sold to Fox Entertainment in 2007 for undisclosed price
Went public on the NASDAQ in 2007;
now valued at more than $4BN
The entrepreneurs from the three
most influential companies are
very successful in their own right.
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Note: Shade of orange in the chart above illustrates the degrees of separation from the top three firms: 1 = 75% shaded and 2 = 50% shaded. Top 3 are 100% orange.
These entrepreneurs
influenced >80% of the
other firms in the network,
highlighted here in light orange.
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First tech incubator
opens
First local VC firm
launches
Google opens office
Yahoo opens office
Buenos Aires creates a
Tech District
$100M VC firm
launches
Two tech incubators
open
Facebook opens office
The growth of this network of entrepreneurs has also drawn other players into the local entrepreneurial ecosystem.
NUMBER OF COMPANIES IN THE BUENOS AIRES TECH NETWORK BASED ON YEAR FOUNDED
Endeavor launches in Argentina
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How is this relevant?
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.
Can a few high impact entrepreneurs change the world?
How is this relevant?
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current unemployment.
How is this relevant?
Micro (Avg 1.39 employees) SMEs (Avg 35 employees) Big (Avg 1,250 employees)
59m
6m
200k
Number of companies by average size
# of
Firm
s
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current unemployment.
How is this relevant?
Micro (Avg 1.39 employees) SMEs (Avg 35 employees) Big (Avg 1,250 employees)
59m
6m
200k
Number of companies by average size
# of
Firm
s
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current unemployment.
Nearly 90 percent of
all companies
in the world have
never hired a single
individual.
How is this relevant?
Micro (Avg 1.39 employees) SMEs (Avg 35 employees) Big (Avg 1,250 employees)
59m
6m
200k
Number of companies by average size
# of
Firm
s
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current unemployment.
99.7 percent of all companies inthe world have on average less than
35 employees.
Can a few high impact entrepreneurs change the world?
How is this relevant?
Micro (Avg 1.39 employees) SMEs (Avg 35 employees) Big (Avg 1,250 employees)
59m
6m
200k
Number of companies by average size
# of
Firm
s
13%
32%
55%
% o
f W
orl
d’s
R
even
ues
200 thousand entrepreneurs
that became BIG have
created most of the wealth and
most of the formal jobs.
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current unemployment.
Can a few high impact entrepreneurs change the world?
How is this relevant?
A country will grow only if its companies can grow.
Between the US, Spain & Greece, can you guess which countryhas more registered companies?
USA SPAIN GREECE
15,883
54,607
73,216
Micro companies per million people
A country will grow only if its companies can grow.
USA SPAIN GREECE
15,883
54,607
73,216
Micro companies per million people
USA SPAIN GREECE
103
72
38
Large companies per million people
A country will grow only if its companies can grow.
Greece Spain USA
25102
475
# of NEW large companies required to grow GDP by 1 percent%
The good news (for Greece & the world)
Greece Spain USA
25102
475
# of NEW large companies required to grow GDP by 1 percent%
Bottom line:
1. High Impact Entrepreneurs grow fast and big; and once successful become investors in other ventures.
The good news (for Greece & the world)
Greece Spain USA
25102
475
# of NEW large companies required to grow GDP by 1 percent%
Bottom line:
1. High Impact Entrepreneurs grow fast and big; and once successful become investors in other ventures.
2. There aren’t many high impact entrepreneurs in the world. But the world doesn’t need that many to grow and create jobs.
The good news (for Greece & the world)
Greece Spain USA
25102
475
# of NEW large companies required to grow GDP by 1 percent%
Bottom line:
1. High Impact Entrepreneurs grow fast and big; and once successful become investors in other ventures.
2. There aren’t many high impact entrepreneurs in the world. But the world doesn’t need that many to grow and create jobs.
3. Public policy can’t just buy more of these entrepreneurs. They only appear as a result of successful entrepreneurs, and success takes time.
The good news (for Greece & the world)
Greece Spain USA
25102
475
# of NEW large companies required to grow GDP by 1 percent%
Bottom line:
1. High Impact Entrepreneurs grow fast and big; and once successful become investors in other ventures.
2. There aren’t many high impact entrepreneurs in the world. But the world doesn’t need that many to grow and create jobs.
3. Public policy can’t just buy more of these entrepreneurs. They only appear as a result of successful entrepreneurs, and success takes time.
The good news (for Greece & the world)
Lessons for building a high-impact entrepreneurial ecosystem:
Entrepreneur-led ecosystem development works best. Governments, accelerators, investment firms, service providers and multinational firms play important support roles, but ecosystem development must follow the lead of established entrepreneurs.
It takes more than just start-ups. Successful high-impact entrepreneurs, who “pay-it-forward” by supporting and inspiring the next generation of entrepreneurs, are required.
A small number of high-impact entrepreneurs turn out to be especially critical. Entrepreneurs at the top three most influential companies touched 60%+ of the other companies in the sector.
Entrepreneurs who have successful exits should be encouraged to become active angel investors and/or VCs. Local entrepreneurs who’ve “been there before” can offer the smartest capital to high-potential and attract high-quality partners from outside the region.
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28
THANK YOU
Contact:Cindy Ko
www.endeavor.org