TRESVISTA FINANCIAL SERVICES
Entrepreneurship
Entrepreneurial success is a function of the ability of an entrepreneur to see opportunities in the market place,
initiate change, and create value through solutions. There are two main classes of entrepreneurs: Growthbacked Entrepreneurs and Recession-backed Entrepreneurs. Growth-backed entrepreneurs are innovative,
opportunistic and risk-appetite entrepreneurs, whereas, Recession-backed entrepreneurs are mainly necessitybased entrepreneurs.
The GEM Conceptual Framework for Entrepreneurship
A number of researchers and experts have conducted studies on the relation between macroeconomics,
business cycles, and entrepreneurial activity. We refer to the entrepreneurship framework developed by Global
Entrepreneurship Monitor (GEM) to establish the inherent interdependence between entrepreneurship and
business cycles.
Basic Requirements
Institutions
Infrastructure
Macroeconomic Stability
Established Firms
(Primary Economy)
New Branches,
Firm Growth
Efficiency Enhancers
Higher Education &
Training
Social,
Cultural,
Political
Context
Goods Market Efficiency
Labor Market Efficiency
Financial Market
Sophistication
Technological Readiness
Innovation &
Entrepreneurship
Entrepreneurial Finance
Government Policies
Government Entrepreneurship Programs
Entrepreneurship
Education
& D Transfer
R
Commercial, Legal
Entrepreneurship
Attitudes:
Perceived Opportunities
Perceived Capacity
Activity:
Early-Stage
Persistence
Exits
National Economic
Growth
(Jobs & Technical
Innovation)
Aspirations:
Growth
Innovation
Social Value Creation
Infrastructure for
Entrepreneurship
Source: Global Entrepreneurship Monitor 2009 Global Report.
GEM model illustrates that macroeconomics is
correlated to entrepreneurial activity at every phase:
boom or recession
The top portion of the framework focuses on
established and developed firms. These firms explore
newer markets, innovate newer products, and increase
their risk appetite. These expansion activities provide
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additional employment in the economy which leads
to growth of entrepreneurial activities.
The lower half of the model details the pre-conditions
and ambience necessary to