Entrepreneurship ranking 2007 Prof Hans Crijns Vlerick Leuven

Entrepreneurship ranking 2007 Prof. Hans Crijns Vlerick Leuven Gent Management School Porto – 2007 December 7 th 1 Directorate Enterprise

Agenda n ECER Stakeholders presentation n Objectives of the ECER 2007 ranking n ECER 2007 survey n Results ECER 2007 ranking n Comments 2

Gathering opportunities n For most of European cities, start-up development is an indicator of the economic dynamism n Several rankings and publications mix n Demand for focused benchmarking on an international scale Stakeholders presentation 3

Cfr. GEM Conceptual Model General National Framework Conditions • Openness (External Trade) • Government (Extent, Role) • Financial Markets (Efficiency) • Technology, R&D (Level, Intensity) • Infrastructure (Physical) • Management (Skills) • Labor Markets (Flexible) • Institutions (Unbiased, Rule of Law) Social, Cultural, Political Context Major Established Firms (Primary Economy) Micro, Small, and Medium Firms (Secondary Economy) Entrepreneurial Framework Conditions • Financial • Government Policies • Government Programs • Education & Training • R&D Transfer • Commercial, Legal Infrastructure • Internal Market Openness • Access to Physical Infrastructure • Cultural, Social Norms National Economic Growth (GDP, Jobs) Entrepreneurial Opportunities Entrepreneurial Capacity - Skills - Motivation Business Churning 4

Geographic and economic representativeness n Based on the Cushman & Wakefied real estate ranking ¬ Top 25 European cities ¬ The most attractive and dynamic cities in Europe n Capitals n A total of 21 cities studied by the same modalities, for an ¬ European coverage ¬ economic coherence n European cities represented ¬ >5 millions inhabitants ¬ <5 to >2. 5 million inhabitants ¬ <2. 5 to >1 million inhabitants Objectives of the ECER 2007 ranking 5

ECER 2007 initiated by n Partners Directorate Enterprise n Survey conception and operation Stakeholders presentation 6

Excellence and scientific credibility David Smallbone n A Scientific Committee ¬academic experts in the field of entrepreneurship ¬on a European and global level Nadine Levratto Kingston University President ECSB UK CNRS, ENS, OCDE France Hans Crijns n An independent board from reference networks ¬ECSB - European Council for Small Business ¬AIREPME - Association Internationale de Recherche en Entrepreneuriat et PME) Vlerick Leuven Gent Management School Belgique André Joyal Université Québec Trois-Rivières Canada Olivier Torres Université de Montpellier Olivier Crevoisier Université de Neuchâtel et EM Lyon Suisse France Laura Gaillard Univeristé de BOCCONI Italie Rigour – Credibility – Integrity Objectives of the ECER 2007 ranking 7

ECER 2007 ranking survey: Framework n Entrepreneurship is a proximity phenomenon ¬ The rise of local authorities ¬ At the level of towns / cities: the issue of support and financing of the enterprise project n The ECER 2007 survey is based on ¬ Recent entrepreneurship in main European cities ¬ Questioning grouped into five broad themes ¬ Measuring satisfaction with the importance Objectives of the ECER 2007 ranking 8

ECER 2007 thematic covering n Thematic covering of the main services provided 1. 2. 3. 4. 5. Promotion and accessibility to the entrepreneurship Ante-creation support and services Post-creation support and services Financing and monetary aids dedicated to the creators Economic environment, market, infrastructure and quality of life n Expectations are classified on 2 main criteria's ¬ The importance of the subject for the entrepreneurs ¬ The entrepreneurs’ satisfaction [ Impact level crosses satisfaction with the expectations Representative - Accurate ECER 2007 survey organization 9

ECER 2007 General ranking (21 cities on 5 themes) Cities in ECER 2007 ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 GOTHENBURG STOCKHOLM BIRMINGHAM AMSTERDAM LONDON GENEVA BRUSSELS VARSAW BERLIN LYON LILLE FRANKFURT MUNICH BARCELONA MADRID PORTO MILAN MARSEILLE ROMA LISBON PARIS ECER 2007 ranking 5 themes Rank 20 30 40 50 60 70 GOTHENBURG 1 2 STOCKHOLM 3 BIRMINGHAM AMSTERDAM 4 LONDON 5 6 GENEVA 7 BRUSSELS VARSAW 8 9 BERLIN 10 LYON 11 LILLE 12 FRANKFURT 13 MUNICH 14 BARCELONA 15 MADRID 16 PORTO 17 MILAN 18 19 20 21 80 MARSEILLE ROMA LISBON PARIS Results ECER 2007 ranking 10

ECER 2007 General ranking on 21 cities max ECER 2007: 5 themes synthesis 100 AMSTERDAM (4) BARCELONA (14) BERLIN (9) BIRMINGHAM (3) BRUSSELS (7) FRANKFURT GENEVA (6) GOTHENBURG (1) LILLE (11) LISBON (20) LONDON (5) LYON (10) MADRID (15) MARSEILLE (18) MILAN (17) MUNICH (13) PARIS (21) PORTO (16) ROMA (19) STOCKHOLM (2) VARSAW (8) GOTHENBURG (1) 63 BIRMINGHAM STOCKHOLM (3) (2) AMSTERDAM (4) 53 Satisfaction 58 GENEVA (5) VARSAW FRANKFURT LYON LILLE MADRID MARSEILLE PARIS 54 LISBON ROMA 43 49 BARCELONA PORTO MILAN MUNICH 48 BRUSSELS BERLIN LONDON 59 Importance 64 Results ECER 2007 ranking 69 max 100 11

First Results – Observations – Interpretations n Observations ¬Geografic effect ¬Duality mégapoles (5) /métropoles (16) ¬Difference between § expectations § perception n. Interpretations ¬Dynamics effect ¬Size effect of the cities ¬Socio-culturel effect Résultats du Classement ECER 2007 12

ECER 2007: Results by cities GOTHENBURG: N° 1 ECER 2007 : GOTHENBURG: 80 n Good position POST-CREATION 70 60 50 Satisfaction PROMOTION ANTE-CREATION FINANCING n Position to enhance ¬Ante-creation ¬Financing PROMOTION ANTE-CREATION POST-CREATION FINANCING ENVIRONMENT 40 30 40 ¬Promotion ¬Post-creation ¬Environment ENVIRONMENT 50 Importance 60 70 80 GOTHENBURG: reorganization and voluntarism Coherent politics of entrepreneurship development Inciting base relayed by educational system and support to the creation Ø Ambitious development objectives after shipyards closing Results ECER 2007 ranking 13

ECER 2007: Results by cities PARIS: N° 21 ECER 2007: PARIS 80 50 40 Satisfaction 70 60 PARIS: Themes dispersion n Good position PROMOTION ANTE-CREATION POST-CREATION FINANCING ENVIRONMENT ¬Ante-creation ¬Environment ¬Promotion PROMOTION ENVIRONMENT POST-CREATION n Position to enhance ¬Post-creation (low importance) ¬Financing (strong dissatisfaction) ANTE-CREATION FINANCING 30 40 50 Importance 60 70 80 PARIS: “Capital” effect ! Good satisfaction level on promotion, ante-creation and environment Difficulties on post-creation and financing support Ø Dispersion effect caused by size and actors multiplicity sometimes hard to localize* Results ECER 2007 ranking 14

Next steps n Final report ECER 2007 forecast in January 2008 n Preparing ECER 2008 n Complementing methodology n Extension to new cities and communication ECER 2008 : Partnership, diffusion and media coverage 15