Today’s blog post talks about entrepreneur mobility across the G20 countries and is the next in the series of posts focusing on the reports presented at the 2018 G20 YEA summit.
The report, written together with Dentons, speaks about why mobility matters for young entrepreneurs and how improved migration is associated with improved cross-border communication and trade. Topical areas considering the current political climate!
So why does mobility matter for young entrepreneurs – and specifically, for the young entrepreneurs of today? In Dentons report, you will read:
“…despite increases in entrepreneurial intention and activities, young
entrepreneurs struggle to grow their businesses and, according to the B20 Employment and Education Taskforce, are ‘left on their own to evolve primarily with a domestic narrow market niche.’ The issue countries now face is to nurture the sustainable growth of youth-led businesses.”
Entrepreneurs need to be able to build global businesses and collaborate with partners across borders. As markets become more globalized, entrepreneurs need to be able to expand their businesses beyond their borders, enabling them to better mitigate the negative impacts of small and over-traded local markets. Easier access to a global stage may weather this impact. Providing opportunities for entrepreneurs to operate more seamlessly across borders may also allow young entrepreneurs to become more adaptable and resilient to economic shocks.
Mobility is also required to establish supply chains, collaborate with global partners, recruit new talent and cultivate innovative ideas. Unlike previous generations, young entrepreneurs today have grown up in an era of globalization and digitization. There is evidence that young entrepreneurs are more inclined to network internationally and are more oriented towards exports than older generations, suggesting a higher chance of success in global markets. Improved mobility and increased participation in cross-border trade can positively contribute to
The growth of emerging markets. Participation in cross-border trade also has a positive impact on the creation of quality formal jobs. Reducing friction in business travel through streamlined immigration programs will give young entrepreneurs an opportunity to meaningfully participate in the global economy.
A low proportion of small businesses expand beyond their local markets to export internationally across G20 countries. As exporting businesses do better on a number of measures, including revenue per employee and employee headcount, reform must occur in order to instil a culture of building multi-jurisdictional business among young entrepreneurs. Although mobility is all but one of the barriers faced by entrepreneurs, even small improvements in overall conditions for entrepreneurship could generate tremendous economic gain for countries.
The potential economic and social gains countries stand to realize through implementing a young entrepreneur-friendly migration policy reinforces the benefits of capitalizing on the opportunity.
The report goes on to discuss different possible solutions on how to work towards the end of supporting and facilitating entrepreneur mobility. It is interesting to note how what has been proven to be of importance for a healthy, innovative and successful entrepreneurial environment is not what is being reflected in current mainstream politics, where fear of openness and closed borders prevails at the moment. It brings to mind a quote by Simon Sinek:
“Safe is good for sidewalks and swimming pools, but life requires risk if we are to get anywhere.
You can download the full report here.