ASSIGNMENT OF

ENTREPRENEURSHIP
ON
COMPARATIVE STUDY OF
ENTREPRENEURSHIP
SCHEMES OF THREE DIFFERENT COUNTRIES—
COUNTRIES—
BRAZIL , INDIA &TURKEY

Submitted to: Submitted By:

 BRAZIL

Population: 198,739,269
GDP: $2.03 Trillion ('08)
GDP Growth Rate: 5.2% ('08)
GDP per Capita: $10,300
Government: Federal Republic

Total Entrepreneurial Activity in Brazil Average = 12.8%

In 2004, Brazil was the 3rd largest export market for U.S. goods and services.
• In 2004 Brazil’s GDP exceeded $812 Billion Dollars.
• Sometimes Highest TEA level in the world.
• South America’s dominant economy.
• Part of MERCOSUL, 2nd largest customs union in the world and fourth largest consumer
market with a GDP of $221.44 Billion Dollars.
• In 2004 Brazil’s population exceeded 177 million
• More than 79 million people in the workforce.
• Majority of their industrial activity is concentrated in the south.
• Brazil’s landmass is larger than the U.S. at 3,290,000 sq. mi.
• World’s 4th largest road system and a large % of the world’s navigable rivers.

Brazil is a leader in entrepreneurship, with an estimated one in eight adults being

“entrepreneurs.” Much of the business that occurs in Brazil is done by single businesspeople
either selling their homemade goods or providing their services. Foreign entrepreneurship is a bit
of a rarity in Brazil. It is simple for a local businessperson to open a business by, in most cases,
circumventing the typical red tape associated with starting a business. The regulatory boards are
so poorly managed and so open to bribes that local entrepreneurs can easily sneak by without
following proper procedure. For foreign businesspeople it is much more difficult. Foreigners
draw attention to themselves and therefore fall prey to greater scrutiny. It is imperative for the
foreign businessperson to hire a good broker to handle their interactions with government
officials.
The TEA in Brazil is a little more than 13. Also almost half of this number is women (46%),
which is up from 4 years ago when it was only 29%. New programs have recently been started to
help women become even more involved. Opportunity based entrepreneurship and need based
entrepreneurship are close to being equal.
One of the major problems to getting started in Brazil is paperwork. Bureaucracy in Brazil is
very bad and it takes a while for things to get through certain channels. Despite this, Brazil ranks
very high on the Global Entrepreneurship Model (GEM) list of countries with the highest
entrepreneurial activity.
 INDIA

Population: 1,166,079,217
GDP: $3.319 Trillion ('08)
GDP Growth Rate: 7.3% ('08)
GDP per Capita: $2,900
Government: Federal Republic

Total Indian Entrepreneurial Activity Average = 12.1%

India was second among all nations in Total Entrepreneurship Activity as per the Global
Entrepreneurship Monitor Report of 2002. But after several years of data, India appears to have a
TEA level rather close to the world average. India is ninth in the Global Entrepreneurship
Monitor (GEM) survey of entrepreneurial countries. It is highest among 28 countries in
Necessity based entrepreneurship, while 5th from the lowest in opportunity based
entrepreneurship.

The liberalization, which was started in 1991, and the Information Technology boom of the mid-
late 90’s, have been significant factors, leading to a wave of entrepreneurship sweeping through
the country. Indians have entrepreneurial capacity. However the society and government are not
very encouraging towards entrepreneurship. To a large extent, the Indian society is risk averse.
People usually seek secure and long-term employment, such as government jobs. The physical
infrastructure needs to be improved. Social Attitudes, lack of capital, inadequate physical
infrastructure and lack of government support are major factors of hindrance. India is the fifth
largest economy in the world (ranking above France, Italy, the United Kingdom, and Russia) and
has the third largest GDP in the entire continent of Asia. It is also the second largest among
emerging nations. The liberalization of the economy in the 1990s has paved the way for a huge
number of people to become entrepreneurs.

Over the years India and China have followed opposing strategies for development. While
China’s growth has been fuelled by the heavy dose of foreign direct investment, India has
followed a much more organic method and has concentrated more on the development of the
institutions that support private enterprise by building a stronger infrastructure to support it. Its
corporate and legal systems operate with greater efficiency and transparency than do China’s.
The Government has encouraged entrepreneurship by providing training and also the facilities to
succeed, particularly in the rural areas. One style of innovation that really works in a country as
large and diverse as India, is grassroots innovation: this includes inventions for a milieu that is
quintessentially Indian.

Moreover, in India, the post-liberalization and globalization era has brought with it a growing
middle class - roughly estimated to be 250 million - and rising disposable incomes. This presents
a huge potential, which if tapped can be a veritable gold mine. Entrepreneurs can make the best
of this by catering to various demands of this segment. India, with its abundant supply of talent
in IT, management, and R&D, has become the hot bed of outsourcing of services from all parts
of the globe where companies can reduce their costs, but not their quality. In terms of
improvement, there needs to be an increase in the quality and quantity of VC / Angel Investors in
India. Also, the Governments need to still continue reducing the administrative burden on
entrepreneurs, and coordinate among their agencies to ensure that the necessary resources are
directed where they are needed. The physical infrastructure needs to be improved. Socially, the
Indian society is adapting to a more risk friendly environment and also looking for jobs in the
private sector.
 TURKEY

Population: 76,805,524
GDP: $930.9 Billion ('08)
GDP Growth Rate: 4.5% ('08)
GDP per Capita: $12,900
Government: Republican
Parliamentary Democracy

Total Turkish Entrepreneurial Activity Average = 5.9%

Entrepreneurship is increasing in Turkey. The country suffered from very high inflation rates of
up to 100% for the last 10 years. Entrepreneurial projects have had difficult times finding
financial support because of a lack of loans available with reasonable interest rates. However the
recent growth of the economy, decreasing inflation rates and possible membership to the
European Union. Turkey is a good trade partner for U.S. international business firms. Turkey’s
advantages include: (1) low labor costs; (2) production of goods that have a ready market in the
U.S., including textiles, leather, and craft products; (3) a political structure that the constitution
mandates to remain secular; (4) aspirations to join the EU; (5) membership in NATO; and (6) a
declining inflation rate.
The integrity of the constitution was to be guaranteed by the military, and over the last several
decades Turkey has managed to avoid a military government. The influence of the West, through
NATO and the EU, has softened somewhat the hand of the military in Turkish politics. Istanbul,
located at the entrance to the straits leading to the Black Sea, is a major city and major port. It
offers great opportunities to take advantage of the resources from a vast geographical area that
funnel through that marvelous city.

• Endeavor Entrepreneurs (Turkey) - are those poised to develop new technologies and
innovations that will transform societies and create thousands of jobs and generate
millions in wages and revenues in developing countries - but lack the role models and
networks to reach their potential. Each month they hold roundtables to leverage the
experience and expertise of our network in discussing the most common management and
entrepreneurial challenges in an informal setting. Along with EE from Latin America
and South Africa, they met with the Boston Business Community with a goal to advance
private sector development in emerging markets.

• Cisco Systems to invest up to $275 million in Turkey over next five years. One of the
investment initiatives is for a Cisco Entrepreneurship Institute set up between Cisco, the
Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the Turkish
government, to teach skills for opening and running small businesses.

• Growing interest in women’s entrepreneurship since the beginning of the 1990’s due to
women’s entrepreneurship development activities by public institutions and civil society
organizations. This has been seen as an increasingly solution to women’s unemployment
and means by which women can have a certain degree of economic independence.

• The small entrepreneurship project (funded by Japanese Grant Fund) was utilized to
evaluate the banking sector and credit policies with a focus on their effects on women
entrepreneurs. These organizations were evaluated to identify ways to serve in provision
of fiscal and economic services to develop women’s entrepreneurship.

• Businessmen Allen Collinsworth has been a leading entrepreneur in Turkey and believes
that doing his best entails bridging people and businesses locally and internationally. His
success in Turkish business has been being respectful of traditions and values.
 • Progressive governments policies protect ideas and encourage entrepreneurship
accelerate growth – growth that has the potential to create opportunity for all Turks and
improve their standard of living.

• Small & medium scale enterprise development in Southeast Anatolia (GIDEM) is a

sector developed by the United Nations Development Program (UNDP) of Turkey to
prepare analytical examination on women’s entrepreneurship opportunities in
southeastern Anatolia. Established a Women Entrepreneurship Center in Sanliurfa with
the government and Harran University. Along with an internship program for female
university students to introduce them to business environment and to encourage their
entrepreneurship potential. This is all due to the still prevalent gender equality within
Turkey.

• Turkey is ranked 43 out of 178 economies for ease of starting a business.

• Pozitron, www.pozitron.com, a mobile and alternative communications solution provider

based in Turkey, won the Global Business Plan Contest sponsored by the Harvard
Business School's Entrepreneurship Club. Their business plan focused on its integrated
mobile banking product. Every day, over 100,000 users enjoy Pozitron’s mobile
applications and more than 250,000 people communicate through Pozitron’s solutions.

Analysis:
After going through the Entrepreneurship schemes of three different countries, we can make
comparison as, Brazil which ranks very high on the Global Entrepreneurship Model (GEM , has
many flaws in its operations. Its regulatory boards are so poorly managed and open to bribes that
local entrepreneurs can easily sneak by without following proper procedure. The TEA in Brazil
is a little more than 13. Also, Foreign Entrepreneurship is rarity in Brazil as they are always
posed to scrutiny. Despite of these drawbacks, efforts are being made to involve more women
and have opportunity based entrepreneurship equal to need based entrepreneurship.
India which is ranked as second among all nations in Total Entrepreneurship Activity as per the
Global Entrepreneurship Monitor Report of 2002, is also ninth in the Global Entrepreneurship
Monitor (GEM) survey of entrepreneurial countries. Indians have good entrepreneurial capacity.
But social attitudes, lack of capital, inadequate physical infrastructure and lack of government
support are major factors of hindrance. Its corporate and legal systems operate with greater
efficiency and transparency than that of Brazil’s.In terms of improvement, there needs to be an
increase in the quality and quantity of VC / Angel Investors in India. Also, the Governments
need to still continue reducing the administrative burden on entrepreneurs, and coordinate among
their agencies to ensure that the necessary resources are directed where they are needed.

In Turkey entrepreneurship is at growing stage. It had suffered very high inflation rates of up to
100% because of which its entrepreneurial projects have had a difficult times finding financial
support because of a lack of loans available with reasonable interest rates. But, now
entrepreneurship is being promoted by its various efforts as there are Endeavor Entrepreneurs
who are poised to develop new technologies and innovations, Cisco Entrepreneurship Institute is
going to be set up, Women Entrepreneurship is being encouraged and progressive governments
policies are also implemented.

References

Websites

http://www.factmonster.com/

http://www.entrepreneur.com/

Magazine

Four P’s