Defining the World’s Most Entrepreneurial Countries
by Case Lane
In the summer of 2020, global travel is largely off limits for most people, but there are other ways to travel around the world.
The global pandemic situation has prompted many people to begin considering the need to create an additional stream of income through an online business. But how many people live in a country that fully supports their intentions.
Researchers use different measures to determine an answer to this question. Studies ask: who is entrepreneurial or who isn’t…and what about whole countries?
Can the entrepreneurial receipt-ability of entire people be determined? And if yes, what would be the factors? Why would some people be considered more entrepreneurial than others?
And if you are or are not in one of these countries, what does it say about your chances for starting a business?
If you’ve read my book Life Dream, you know I’ve observed entrepreneurial behavior all over the world that supports my belief that the entrepreneurial strain runs through our human DNA. So when smart people come up with their fancy lists defining who is and is not entrepreneurial, I wonder where are the world’s most entrepreneurial countries and why were they selected for the title?
Defining World’s Most Entrepreneurial
When you look at a shanty town or slum, an informal residential area of poor people who are living perhaps in wood or mud huts or cardboard boxes, you might think…these are poor people and there’s not much going on…
…But when you look closely, you might see an incredible depth of activity that can only be described as entrepreneurial.
So what really are the world’s most entrepreneurial countries?
A quick check online reveals there are many lists ranking the world’s most entrepreneurial countries along defined terms. In this article, I’m going to review two that stood out because they reach two different conclusions. Their conflicting results speak volumes about who are the entrepreneurs in the world.
One list comes from the Global Entrepreneurship Index from the Global Entrepreneurship and Development Institute (GEDI) in Washington, DC.
The index uses 14 pillars to rank entrepreneurship, based on concepts like attitude, ability, transportation infrastructure, broadband and similar factors.
At a glance, the list appears…unimaginative. The emphasis, and credit, for entrepreneurship appears to be awarded to the dollar value created by companies in advanced economies, not the more global entrepreneurship definition of delivering value to solve a problem.
The other list comes from Latona’s analysis of the report from Global Entrepreneur Monitor (GEM). And not only did they create a different list of top countries, but also the factors used to determine entrepreneurial tendencies might not even be considered relevant by typical entrepreneurs.
The Entrepreneurial Factors
The GEM list has six fascinating questions. Consider how an aspiring entrepreneur in your culture might respond to these prompts.
GEM asked 18 – 64 year olds whether ‘fear of failure’ would prevent them from starting a business. The assumption, I assume, is that a population that answers ‘yes,’ they are too afraid of failure to start a business, would have a hard time encouraging aspiring entrepreneurs.
But would not a true aspiring entrepreneur, by definition, answer ‘no’ to that question because the true entrepreneur overcomes fears and starts a business with confidence. In other words, the question might be ‘yes’ for the typical population, but ‘no’ for anyone who would ever consider becoming an entrepreneur.
The next question was about entrepreneurial intentions – who was planning to start a business within 3 years.
One result which stood out was Switzerland. The wealthy country ranked #2 on the GEDI list of world’s most entrepreneurial. But in the GEM survey just 7% of Swiss answered ‘yes’ to entrepreneurial intentions questions. The country scored .87 (less than 1 point) out of 10 on this question.
This result reflects the concern raised at the beginning of this article. A wealthy industrial country may not be entrepreneurial on measures that count for the future, like the ability to nurture sustained entrepreneurship.
As always with numbers, be wary of statistics, surveys and lists.
Weighing Innovation
The GEM list also weighted the questions, further indicating the factors they considered important to an entrepreneurial culture.
One question alone, on innovation, represented 40% of the country’s entrepreneurial value, the heaviest weight awarded in the overall score.
But the wording of the question uniquely defined innovation as the percentage of those involved in total early-stage entrepreneurial activity (TEA) who indicate that their product or service is new to at least some customers AND that few/no businesses offer the same product.
That is an extraordinary measure to quantify. How many people can really answer ‘yes’ to that question? If an entrepreneur introduces a product or service adaptation with features that do not exist elsewhere, and puts their own unique perspective, and singular approach into the creation of the product or service, does it count as new or old?
Where is ‘same’ product defined? At the macro level, almost everything can fit somewhere. If you start creating t-shirts with cool sayings on them, the product is a t-shirt which is not new, but your cool sayings are your differentiator. And it is that difference that makes for your success as an entrepreneur.
However, it appears that the weight of the ‘yes’ answer to that question helped define the overall list. The three countries with the highest percentage of ‘yes’ where Chile, India and Luxembourg – who ranked 1, 2 and 5 on the overall list.
If innovation, being first and new, is considered the hallmark of entrepreneurship, then those who demonstrate that intention come out ahead.
The Important but Unavailable Factors
Another question was around the availability of financing, and the last one was on the inclusion of entrepreneurship in basic school education. Those are two factors that the most famous entrepreneurs’ stories do not really cultivate. Most countries do not include entrepreneurship in their basic education, and many successful entrepreneurs boot-strapped their way to initial success.
The rating for those two questions were not yes-no but an index number.
The ‘What Will People Say Question’
Another index question, which was left out of the final score was: The extent to which social and cultural norms encourage or allow actions leading to new business methods or activities that can potentially increase personal wealth and income.
Amazingly that loaded question could in fact be the basis for the entire answer on any country’s score. The question should carry weight in many cultures.
Many successful entrepreneurs talk about how they were discouraged from pursuing their business ideas, and made to feel that they were doing something wrong. But their perseverance, and desire, to step away from the status quo, and pursue their own vision, ultimately led them to defy their culture and take the next step.
Since the story of getting past the backlash is one of the most common entrepreneurial stories, one that transcends cultures and locations, it could be argued that experience is the only qualifier for entrepreneurship, anywhere in the world.
The World’s Most Entrepreneurial Countries?
Given the factors used to create the GEM list and GEDI list, only three countries appeared on both: Canada, Ireland and the United States. If you live in one of those three countries, you might be feeling a little more relaxed about your entrepreneurial chances across a variety of measures.
In fact, Ireland ranks in the same place, at #8 on both lists!
The rest of the GEDI list is all economically advanced countries, and the rest of the GEM list is 5 out of 7 developing countries.
So what does it all mean?
Entrepreneurs exist everywhere in the world. And the factors that make an entrepreneur vary across every possible variable. Except the one common reality…
…If you have business ideas in your head, and you are ready and willing to do the work to create a product or service that delivers value. Then you’re an entrepreneur.
The GEDI list is:
1. United States
2. Switzerland
3. Canada
4. United Kingdom
5. Australia
6. Denmark
7. Iceland
8. Ireland
9. Sweden
10. France
The GEM list
1. Chile
2. India
3. Guatemala
4. Canada
5. Luxembourg
6. Angola
7. United States
8. Ireland
9. Turkey
10. Austria
Summary
Reviewing just two of the many lists that attempt to define entrepreneurial tendencies in national populations, you would have to concede – it depends on who you ask and how you ask…
- You can count the availability of roads and high-speed internet or
- You can count the variety of new ideas or public school courses
- But in total what counts is the ability to create new businesses and add value to the economy
- Countries that do that are the true entrepreneurial champions.
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How to Get Out of Your Corporate Mindset When Starting Your Own Business
by Case Lane
Many corporate management-level employees are often hired ‘at will,’ meaning the employee can be let go for any legal reason, and an employee can also leave for any reason – and neither side incurs legal liability.
Yet despite those facts, society insists on referring to those jobs as ‘secure.’
When aspiring entrepreneurs talk about leaving a company job to start a business, they are often admonished to stay in their ‘secure’ job.
Security has come to mean – a place to go every day, a regular paycheck, maybe benefits like subsidized health care, insurance, matching 401(k) funds, and if you work at a Hollywood studio – a free movie every week!
But for many, the ‘security’ comes with a nagging sensation that you are not as secure as you think. When an aspiring entrepreneur walks away, the sensation does not disappear, it remains as a lingering tug determined to pull you back.
The Trappings of Corporate
Back at corporate some time ago, there was this executive, let’s say X, who was upset one day after lunch. X had lunch with Y, and Y had paid with the platinum corporate American Express card. A fact that moved X almost to tears.
Confused?
At this company, the platinum corporate card meant Y had been promoted. Regular management level people had the green corporate American Express card. But the platinum card told X louder than a press release, that Y had been given the recognition demonstrated by the card.
X could not have an intelligent adult discussion about the vagaries of the promotion system, or what was on the lunch menu, because X’s self-esteem and worth were tied to the color of the corporate card.
When you make the decision to walk away, you are not only leaving a job, but also all the Trappings, with a capital ‘T’ that the corporate life provide. Whether you have them now, or can expect to be rewarded in a couple of years, those perks are enticing.
And the best way to get rid of the ideas from your head is to replace them.
Assess What You’re Losing
This may sound counter-intuitive if you are looking for encouragement to quit your 9-to-5, but you have to understand the perks you are giving up by analyzing everything you are about to lose.
Money
The number one benefit is a steady paycheck. Your first hint of panic will come when you realize the money is no longer going to come in from that reliable source.
If you started your business before leaving your job, and already have your second income, you can make this transition easier. You at least have an understanding about what you can expect.
But if you can’t stand your job, and just walked away, then the one thing you have to focus on is replacing your income. Use the need to replace that income as the motivating factor when working on your business.
You may have other financial benefits to replace including health insurance or disability. Over time, you will want to use your new income to cover these potential losses also.
And as for the corporate card, Amex has plenty of business cards you can apply for.
Workspace
Your workspace is about to change. If you had a great office with a view, you may be missing that immediately. In my new book Recast, I write about how setting up your new place to work is one of the foundational steps for getting started with an online business.
You become your own HR, and re-establish a comfortable workspace for yourself. You might not get the view. But you should get the advantage of being where you want to be.
Socializing
Outside of the office there will be no more idle conversations, water-cooler talk, and busy time. As an entrepreneur with your own business, you will be continuously busy, especially in the beginning, and should have little time to miss the easy days of having an office job.
But the other side of office life – exchanging ideas, having meetings, meeting new interesting people – this might be difficult to adjust to. You have to prepare yourself for a life of isolation, solitary decisions and meetings of one.
You can get around these feelings by seeking those who are like-minded to form masterminds, or other groups who may be interested in doing what you’re doing. Try and find an accountability partner who can help you stay on track and focused on your Action Plan.
The key in the entire process is you have to replace the parts of corporate life you like the most with similar support in the online business world. Over time, as you focus more on your business, you will find the memories of your former life fade fast, and your new one becomes more omnipresent and relevant in your every day.
Summary: How to Get Rid of Your Corporate Mindset
You have to slowly replace the Trappings of corporate life with your solopreneur alternatives:
- Salary and other financial benefits come from continuously focusing on the work required to replace the money as soon as possible
- Your comfortable workspace can be established wherever you decide to work
- You can be happy to be rid of idle office time, but desperate to reconnect with people – do that by joining group masterminds or finding accountability partner
You get corporate out of your head by creating a new focus – the value you want to deliver – the product or service that your soon-to-be-discovered community wants or needs.
And once you have changed your focus, you are well on your way to being a recast entrepreneur for the long-term
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See the World like a Global Entrepreneur
Some people call themselves globalists because they believe in trading freely with other countries, and having world-level companies and organizations managing products and services.
And some people call themselves isolationists because they prefer to deal only with those within their borders, and to stay out of other people’s troubles.
But throughout history, for better or for worse, people have been influenced by those who are outside their borders. And in the 21st century, if you’re an entrepreneur, the influence is more often than not, a key factor in running your business.
Whether you’re a Fortune 500 CEO or a sole proprietor who put up your first website yesterday, the entire world is your market, and if you call yourself an entrepreneur, you need to know how to look at everyone.
Your community, audience, customers or client base is the whole world.
This is your neighborhood…Your Market for your product or service
This is a 21st century reality you cannot ignore. And to navigate effectively you need to know how to look at your community, how to recognize your place among everyone as you offer your product or service to the global marketplace.
So what should you do?
See the World as Your Market
The key idea is the entire world is your market. This has happened because technology makes it possible to connect with people across great distances for nominal costs. People now search for universal concepts and ideas. And if you are the one offering what they are looking for, then you win the business.
That means you can look at the world as your neighborhood. When you are reaching out to your customers they are as good as next door. This is not meant to sound kumbya. The idea is to operate with a world view.
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Maintain Your Unique Brand
This is also not meant to sound politically-correct. You don’t have to genericize your product or service idea, or try and be all things to all people. You just have to recognize you may have a customer base in places you did not originally expect to have them.
So be aware – not stifled by this opportunity. But stay authentic and true to your brand.
That’s not a conflict. Your value to the market lies in your uniqueness, your voice, and original presentation. Your ability to deliver to the market is in your capabilities and effort. So you keep your product unique you while still making it global.
Common problems, Multiple Solutions
Many people face the same challenges and are searching for the same solution. If your business operates in a universal industry like technology, food or fashion, you will be able to reach people who understand the underlying concept because it is the same in different places.
The next thing people will decide is if they like how you deliver it.
In the same way that there are thousands of personal development approaches, there may be thousands of takes on your idea. Individuals will decide which one they like. You may think Tony Robbins is too rah-rah, and you prefer the zen of Eckhart Tolle. Usually you make this decision based on your own personality, not because you live in a particular location.
Of course, sometimes you can associate particular cultures with specific approaches to how things are done. But this may also depend on the product or service you are offering. A culture may be open to one type of product, and closed to another. You will not know until you reach out with yours.
As an entrepreneur you look at the world as the marketplace where you can deliver your product or service. You respect the consumers in every market, but you are really only looking for the ones who are aligned with you.
Don’t be afraid to say ‘no’ to those customers who are critical or want to do things differently. Those are not the people you are looking for in your community, they can go elsewhere to find someone else’s version of your product or service.
You also do not have to be overly aware of holidays, time zones or standard work weeks. We live in a 24/7/365 time-shifting world. Whenever you decide to present your product or service, someone is awake somewhere in the world. And those who miss it the first time can catch the replay.
This is another benefit to operating in our high-tech global environment. There is plenty of scope for you to work when you want to work and still reach those who are looking for you.
So as you look at the world – your neighborhood – think of it as an always on, always open space.
Operate Inside the Walls
I have an analogy I use to explain the difference between self-publishing and traditional publishing, but I think the idea also suits this topic.
Imagine a walled city, like you see in the movies and on TV, you know like Winterfell. Imagine in the center is the public market. Entrepreneurs are there all the time selling products and services, and buyers are there all the time as well.
The idea with traditional publishing is that you the author stand outside the wall and try and talk a sentry into escorting you in. Once you enter with a sentry people will notice you. You still have to deliver a product people are interested in, but you have a little attention already built in.
With self-publishing, you enter through the open door. You walk right into the midst of the marketplace, where everyone is trying to get everyone else’s attention. To get people interested in you, you really have to perform and figure out a way to grab their attention. You are in, right from day one. But you are on your own.
Frankly I prefer to operate from inside the walls, not outside. And you can imagine your place in the global marketplace the same way. You are in once you create your product or service that’s available for sale to the global marketplace. And you stay in as long as you continue to draw attention to your business.
If people like what they see, if you deliver the value they seek, they will notice you and come to you.
That’s what you want to be doing when you are looking at the world as an entrepreneur – you want to be participating.
