If you were asked to name the most entrepreneurial country in the world, what would you say? US, UK, China?
If by definition you measured entrepreneurship by the proportion of people starting their own business anyway. Leading the race is Uganda, where 28% of people have started businesses in the last 3.5 years, according to analysis of Global Entrepreneurship Monitor data by supplier directory Approved Index.
Next on the list is Thailand, at 16.7%, then Brazil, on 13.8%. All of the countries in the top 10 are developing, where going it alone may be a necessity rather than a choice, due to a lack of good, formal employment.
An exception is South American country Suriname, which was bottom of the list, with only 0.2% having started a business, most of those at the foot of the table were wealthy countries: Italy, Japan, France, etc.
The report says the wave in entrepreneurial activity in Uganda is attributed to a big improvement in its communications networks in recent years.
If you are to look at the definition of ‘entrepreneurial’ from through the lens of a developed vs a developing country, one would find contrasting elements.
‘High early-stage entrepreneurial activity in factor-driven and efficiency-driven economies is motivated by necessity in 28% or 27% of the cases,respectively. The share of early-stage entrepreneurs who started their ventures out of improvement-driven opportunities as motives is the highest in innovation-driven economies (54.9%) in comparison with 45.1% in efficiency-driven economies or 47.0% in factor-driven economies. In several economies (Australia, Canada, Denmark, Finland, the Netherlands, Trinidad & Tobago, United States and Taiwan) two out of three earlystage entrepreneurs were motivated by improvement-driven opportunity. Singapore, Norway, France and Japan stand out with around 70% of early-stage entrepreneurs motivated by improvement-driven opportunity.
Low share of improvement driven opportunity motive (less than 33%) is found in Bosnia and Herzegovina (25.2%), Croatia (28.7%), Uruguay (27.3%), Kosovo (29.1%), Greece (30.5%), Georgia (30.9%), Spain (33.5%), Jamaica (33.5%) and Kazakhstan (33.7%). This report, confirms that in many developing countries, people who start their own company are forced into it by need, rather than aspiration.
*(by % of people starting their own company in the last 42 months