The Latest Edition of the Index of Dynamic Entrepreneurship Report was Released

The Global Entrepreneurship Network and the Prodem think tank at the University of General Sarmiento released the latest edition of the Index of Dynamic Entrepreneurship as part of Global Entrepreneurship Week 2022. This year edition of the index showed that the factors that encourages entrepreneurial activity are improving as the world is adapting to live with Covid-19.

The Index of Dynamic Entrepreneurship (IDE) methodology combines data from more than 40 data variables into 10 key dimensions, to provide accurate measurements and insights for 40 countries worldwide about the social, economic, cultural, political, and regulatory conditions that influence the formation of dynamic new firms.

Dynamic entrepreneurship refers to business ventures with the capacity for expansion as well as young companies that have overcome the early stage of higher mortality to become (at least) competitive SME.

In order to pursue value propositions based on differentiation, innovation, and/or business opportunities to capitalize on dynamic and scalable economic trends, dynamic companies are typically founded by teams with the zeal, aspirations, and competencies to grow. These teams can also leverage helpful networks.

Dynamic entrepreneurship, or those startups that make it through their first years while simultaneously growing significantly and having room to expand more, is the main area of concentration for IDE. These businesses make a disproportionately large contribution to innovation and economic growth.

The analysis reveals a strong link between entrepreneurship activity, enabling conditions, and the Sustainable Development Goals “SDGs”.

That report showed that for the first time, Netherlands surpassed the United States at the top of the rankings and Germany, Norway, and Sweden were the rest of the top five for dynamic entrepreneurship. The report showed that the countries with the highest rankings are those that have substantial social capital, which enables strong networks and cooperation.

Compared to the height of the pandemic, demand circumstances for entrepreneurship have increased in two out of every three of the studied countries. The report also showed that nearly half of the countries surveyed displayed elevated levels of human capital and financial access and in more than half of the examined countries, entrepreneurship-friendly government policies and rules have declined by 5% or more.

Regarding the performance of Egypt, the report highlighted the following findings:

●      Egypt came in the 31th rank among the 40 surveyed country  

●      The growth rate of Egypt’s gross domestic product (GDP) is 3.3% in 2022

●      Egypt GDP per capita is 3,926 USD

●      The Index of Dynamic Entrepreneurship (IDE) value of Egypt is 32.55

●      The highest scoring dimensions are demand conditions, culture, and policies and regulations.

●      The lowest scoring dimensions are business structure, STI platform, and Education

IDE is the result of research and development efforts started more than 10 years ago by PRODEM, conceptually based on its pioneering studies from the late 1990s. The predecessor to the IDE – the Index of Systemic Conditions for Dynamic Entrepreneurship (ICSEd) – became a widely used analytical tool for the work of the Inter-American Development Bank and governments. The new partnership with GEN expands its reach to new countries.

You can read the full report through this link.