Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - Entrepreneurship counseling in the Nordic countries Stockholm May 5 Thomas Ebdrup

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - Content Framework conditions for entrepreneurship in the Nordic region Entrepreneurship counseling & the common Nordic Challenge Success stories & possible policy lessons

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - The Nordic countries are good on start-up… Source: OECD

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - …but perform less well on growth firms Source: OECD

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - Nordic Entrepreneurship Monitor Prepared for the Nordic Counsel of Ministers International Entrepreneurship Benchmark System Performance - 6 indicators on start-up & growth Framework conditions - approx. 80 indicators Indicator sources: OECD, Eurostat, World Bank a.o. Will be available at

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - Preliminary findings for the Nordic region Countries that improve their framework conditions seems to experience better performance There are marked differences between the Nordic framework conditions and recent improvements The framework conditions are generally good for starting a business (especially the regulatory framework and market conditions) The Nordic entrepreneurship culture and capabilities can still be improved

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - Entrepreneurship counseling in the Nordic countries All Nordic countries provide basic services for start-ups often at local or regional level Some Nordic countries also provide services for high-growth companies in the form of acceleration programs (e.g. Denmark and Finland) None of the Nordic countries have an infrastructure for developing start-ups into large companies with 250 or more employees in 10 or 20 years

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - The common Nordic challenge Early internationalization & Born Global More of a “venture” mindset in the Nordic region Lack of private venture capital in early stages Lack of personal competencies needed to develop high-growth companies in the Nordic countries

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - Developing a high-growth infrastructure: The Israeli success storey 44 companies in the Deloitte Fast Growth 500 (36 in Massachusetts and 4 in Finland) +100 companies listed in NASDAQ Best venture market outside US (60 active funds) Yozma: Successful public venture program Publicly funded incubator program changed in 2003; incubators now managed by experienced professionals with direct upside in the incubated companies

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - Developing a high-growth infrastructure: Lessons from Silicon Valley Strong formal and informal network between entrepreneurs, venture capitalists, established companies and service providers Intensively use of network in recruiting the right people for new companies Stanford and Berkeley plays an important role Well-developed environment of service-providers specialized in working with start-ups

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - Possible policy lessons Acceleration programs might be a good idea for those countries without a program today Room for government to improve the high-growth infrastructure e.g. training of service providers Need for a systematic approach to attract talent to develop new companies to the region A new mindset needed within public agencies?

Copyright 2006 © FORA, Langelinie Allé 17, 2100 Kbh Ø - The Nordic challenge and its policy implications Stockholm May 5 Thomas Ebdrup Thank you!