During Global Entrepreneurship Week, Korea Entrepreneurship Foundation held a two-day conference in South Korea, where Global Entrepreneurship Research Network (GERN) Executive Director Phil Auerswald spoke as a featured presenter.
The Korea Entrepreneurship Foundation is a GERN member, and the conference focused on developing a creative global economy. Before traveling to Seoul, Auerswald spoke to the Korea Herald. An excerpt from the interview is included below:
Korea Herald: What is most important to foster entrepreneurship? How can people be encouraged to think of entrepreneurship as important?
Auerswald: Today I was at a GEW 2015 research event at the World Bank, where some leading researchers were discussing this question. We reached a strong consensus that the most important element to foster entrepreneurship is simply this: to favor incumbent firms less. Incumbent firms in any country are the basis of that country’s economic strength. But an environment where the strongest existing businesses are given too many advantages is one that does not leave room for new firms to grow. Of course the growth of new firms is the definition of entrepreneurship. So, for that reason, the most important element is for entrepreneurship policy to favor incumbents less.
Korea Herald: “Entrepreneurship” is still a new concept to many Koreans. How would you define entrepreneurship?
Auerswald: The definition is simple: entrepreneurship is the process of creating and growing a business. Some entrepreneurship is simple, and some entrepreneurial ventures do not grow very much. These entrepreneurs create important value for society, even if they are not particularly high-growth or innovative. A few particularly high-growth and innovative entrepreneurial firms create exceptional value for society. Today there are examples like Alibaba or Tesla Motors, but there are many other examples, of course.
Korea Herald: As the chair of the Global Entrepreneurship Research Network, what is the importance of research-based policymaking, and what makes GERN’s research projects impactful?
Auerswald: GERN is dedicated to providing and aligning more robust evidence and research to inform smarter policies and programs to advance entrepreneurial activity and new firm formation. We are a working coalition of institutions funding research as a tool in realizing the full potential of entrepreneurship to create inclusive prosperity on a global scale. Our objectives are to develop the next generation of entrepreneurship research, share lessons and knowledge and establish open, standardized data resources. GERN members are global leaders in promoting entrepreneurship, and include the Kauffman Foundation, OECD, Princeton University, the World Bank and other regional and national leaders in the field. They undertake joint projects that map entrepreneurship ecosystems, evaluate the efficacy of entrepreneurship programs, such as accelerators, and validate research methodologies, such as those that involve the use of government datasets.
The full interview with the Korea Herald can be found here.