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A Tale of Two Entrepreneurs: Understanding Differences in the Types of Entrepreneurship in the Economy

Not all startup companies are created equal. Although both innovation-driven enterprises (IDEs) and traditional small- and medium-sized enterprises (SMEs) can provide valuable products and services and create jobs, IDEs – startups focused on addressing global markets based on technological, process or business model innovation – can potentially create hundreds or even thousands of high-skill jobs if they succeed.

Kauffman Index of Entrepreneurial Activity 1996-2012

As the unemployment rate fell in 2012, another economic indicator dropped too: the overall business creation rate. According to the annual Kauffman Index of Entrepreneurial Activity, the 2012 rate declined slightly from 0.32 percent of American adults per month starting businesses in 2011 to 0.30 percent in 2012.

The nurturing of new and young firms has so far not been given much attention in prominent global gatherings. International government meetings have mostly concentrated on passive SME policy and others like the World Economic Forum have treated entrepreneurs as a side ring at the circus. The maturing of the Global Entrepreneurship Congress (GEC) to fill this gap is thus a welcome development.

Energizing an Ecosystem: Brewing 1 Million Cups

In what some might consider an ironic twist, technology seems to play a lesser role in building a local entrepreneurial community for startups than good old-fashioned face-time and word of mouth.

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