{"id":231,"date":"2013-12-27T15:37:18","date_gmt":"2013-12-27T15:37:18","guid":{"rendered":"http:\/\/scqa.hult.edu\/en\/news\/blogs\/2013\/december\/eight-ways-europe-can-boost-entrepreneurship\/"},"modified":"2026-03-23T13:41:02","modified_gmt":"2026-03-23T13:41:02","slug":"eight-ways-europe-can-boost-entrepreneurship","status":"publish","type":"post","link":"https:\/\/www.hult.edu\/blog\/eight-ways-europe-can-boost-entrepreneurship\/","title":{"rendered":"Eight Ways Europe Can Boost Entrepreneurship"},"content":{"rendered":"

Written by Olaf Groth, Professor for Global Strategy, Economics, Management and Innovation at Hult International Business School. Read the full article here<\/a>.<\/em><\/em><\/p>\n

For the past five years, Europe has been engaged in fierce debates about the best way to master the current economic crisis. The discussion has tackled everything from austerity packages and their socio-cultural appropriateness to stimulus programmes and the need for balance, the flawed split between monetary and fiscal responsibilities in the region, conflicts inherent in rating agencies, bankers\u2019 incentives and corporate pay schemes.<\/p>\n

All of these issues, however, while valid in their own spheres, are missing a larger point when it comes to Europe\u2019s economic future: the continent\u2019s economic development system is outdated and cumbersome and it is vulnerable to the shocks that the global economy (characterized by disruptive innovation and the flow of capital towards it) will continue to serve up. The model lacks the key ingredient that would lend speed, agility and robustness to an economy: an entrepreneur-driven innovation ecosystem (EDIE).<\/p>\n

A system such as this can maintain growth when the rest of the economy stalls. It survives downturns because it is too well distributed to suffer near-death experiences, unlike automobile, heavy or banking industries. And it restarts quickly because the people who drive it thrive on uncertainty and are comfortable deferring safe pay cheques. This makes them more adventurous than larger organizations with more to lose when considering new activities.<\/p>\n

It is unreasonable, however, to expect Europe to be like California. In Europe, security and stability are essential cultural values that traditionally outweigh gold rush-like striving for opportunity. But Europe can still become more fluid and more welcoming of entrepreneurial innovation. The secret is in the design of the system. It must develop an EDIE that fits its cultural paradigm.<\/span><\/p>\n

Factors that could jumpstart Europe\u2019s EDIE include:<\/p>\n

    \n
  1. A network of\u00a0idea,\u00a0opportunity and risk-share forums\u00a0to generate a framework of engagement rules for the trust-based exchange of ideas and transactions.<\/li>\n
  2. A network of\u00a0hybrid joint-venture institutes\u00a0that synthesize new ideas and ventures, while lowering transaction costs between parties.<\/li>\n
  3. An\u00a0innovation economy think tank\u00a0to foster:<\/li>\n<\/ol>\n