Silicon Valleys of the World

SILICON VALLEYS OF THE WORLD There's no place quite like Silicon Valley, but certain locales in the U.S. and around the world are becoming hot spots for entrepreneurial talent. We break down each region's most entrepreneurial countries, then take a closer look at their innovation culture, VC environment, and business-friendly policies. The Best Places for Entrepreneurship Around the Globe THE ENTREPRENEURSHIP INDEX Global Average Index: 2.49 EUROPE GERMANY 2.6 NORTH AMERICA FRANCE 2.56 2.5 2.2 2.17 U.K. SPAIN RUSSIA ITALY TURKEY 2.15 2.4 U.S.A. 2.8 ASIA CANADA 2.78 LATIN AMERICA AFRICA INDONESIA 2.81 NIGERIA 2.7 INDIA 2.73 KENYA 2.63 AUSTRALIA 2.72 GHANA 2. 56 CHINA 2.66 MEXICO 2.62 2.62 2.35 EGYPT 2.06 PHILIPPINES PERU 2.55 PAKISTAN ECUADOR 2.45 BRAZIL 2.33 COLOMBIA 2.04 :: Note: Regions and country groupings were determined by BBC World Service and GlobeScan. The index is derived from mean scores (between 1 and 4) to four questions: Valuation of innovation; difficulty of starting a business; valuation of people who start a business; arnd ease of putting ideas into practice. THE BEST PLACES FOR ENTREPRENEURSHIP AROUND THE WORLD NORTH AMERICA U.S.A. 2.8 Entrepreneurship Index 2.49 Global Average Index ENTREPRENEURSHIP AND INNOVATION Agree Disagree N/A or Don't Know 23% 59% 36% It's Easy for People to Innovation and Creativity Are Highly Valued Start a Business CAPITAL AND POLICY Venture Capital and Private Equity Attractiveness Index Index Rank 100 1st 75% 82.8 10th 48.7 42nd 45.2 48th 31% 29%, 37.1 64th Ease of Access to Capital OECD Index (1-7 Scale, hardest to easiest): People Who Start Their Own Business Are People With Good Ideas Can Usually Put Them into Practice 3.4 2010 Highly Valued 2008 Days Needed to Start a Business 616 66% 68% 2010 2003 STRENGTHS AND WEAKNESSES Strengths Weaknesses • Decrease in the number of VC funds • Stronger economic recovery compared to other markets Strong innovation and entrepreneurship culture Growing global competition LATIN AMERICA MEXICO 2.62 Entrepreneurship Index 2.49 Global Average Index ENTREPRENEURSHIP AND INNOVATION Agree Disagree N/A or Don't Know 7% 40% 57% 35% Innovation and Creativity Are Highly Valued It's Easy for People to Start a Business CAPITAL AND POLICY Venture Capital and Private Equity Attractiveness Index Index Rank 100 1st 53% 82.8 10th 48.7 42nd 14% 14% 45.2 48th 37.1 64th Ease of Access to Capital OECD Index (1-7 Scale, hardest to easiest): People Who Start Their Own Business Are Highly Valued People With Good Ideas Can Usually Put Them into Practice 2.4 2010 2008 26% Days Needed to Start a Business 9 58 32% 54% 60% 2010 2003 STRENGTHS AND WEAKNESSES Strengths • Growing amount and quality of entrepreneurial activity Weaknesses • Perception of slow judicial system and corruption • Weak enforcement of protection of IP law Low inflation levels EUROPE GERMANY 2.60 Entrepreneurship Index 2.49 Global Average Index ENTREPRENEURSHIP AND INNOVATION Agree Disagree N/A or Don't Know 4% 36% 48% 44% Innovation and Creativity Are Highly Valued It's Easy for People to Start a Business CAPITAL AND POLICY Venture Capital and Private Equity Attractiveness Index Index Rank 100 1st 60% 82.8 10th 48.7 42nd 45.2 48th 42% 37.1 64th Ease of Access to Capital OECD Index (1-7 Scale, hardest to easiest): People Who Start Their Own Business Are People With Good Ideas Can Usually Put Them into Practice 28 2010 Highly Valued 2008 Days Needed to Start a Business 15 45 45% 51% 56% 2010 VS 2003 STRENGTHS AND WEAKNESSES Strengths • A leading European economy with diverse industries • Cultural attitude toward performance and diligence Weaknesses • Possible stricter regulations around quality of management • Strongly dependent on global recovery ASIA INDONESIA 2.81 Entrepreneurship Index 2.49 Global Average Index ENTREPRENEURSHIP AND INNOVATION Agree Disagree N/A or Don't Know 3% 2% 12% 69% 29% It's Easy for People to Innovation and Creativity Are Highly Valued Start a Business CAPITAL AND POLICY Venture Capital and Private Equity Attractiveness Index :: Index Rank 100 1st 85% 82.8 10th 48.7 42nd 45.2 48th 18% 21% 37.1 64th Ease of Access to Capital OECD Index (1-7 Scale, hardest to easiest): People Who Start Their Own Business Are People With Good Ideas Can Usually Put Them into Practice 4.0 2010 Highly Valued 2008 Days Needed to Start a Business 47 168 75% 79% 2010 2003 STRENGTHS AND WEAKNESSES Strengths • Large young and growing middle-income population • Valuations more attractive than in other major Asian countries Weaknesses • Inadequate infrastructure in some areas • Large companies tend to be family- or state-owned AFRICA NIGERIA 2.70 Entrepreneurship Index 2.49 Global Average Index ENTREPRENEURSHIP AND INNOVATION Agree Disagree N/A or Don't Know 36% 64%, 33% Innovation and Creativity Are Highly Valued It's Easy for People to Start a Business CAPITAL AND POLICY Venture Capital and Private Equity Attractiveness Index Index Rank 100 1st 61% 82.8 10th 48.7 42nd 45.2 48th 37.1 64th 30% 27% Ease of Access to Capital OECD Index (1-7 Scale, hardest to easiest): N/A People Who Start Their Own Business Are Highly Valued People With Good Ideas Can Usually Put Them into Practice Days Needed to Start a Business 67% 71% N/A STRENGTHS AND WEAKNESSES Strengths Weaknesses • Poor infrastructure • Robust entrepreneurial culture • Large population, market for consumer products • Poor security of power supply Gist. SOURCES: BBC WORLD SERVICE | GLOBESCAN | UNIVERSITY OF MARYLAND | OECD ERNST & YOUNG | IESE BUSINESS SCHOOL | EMLYON BUSINESS SCHOOL