policies to back venture finance...68 5. 4 Japan: Diversification and clustering of SMES for future growth...
In Canada, combined SME support through R&d programmes and venture capital increased the number of high-growth companies considerably.
Improving access to venture capital (VC) may be a priority policy objective when supporting high-growth SMES.
aiming at establishing a European venture capital market. Section 4. 2. 2.)Internationalisation: Companies seeking to grow quickly need large international markets.
Canada provides insights about the combination of government-funded research and venture capital; Israel is of particular interest due to its current innovative and economic performance.
Since the high tech bubble burst there has been a drastic drop in capital financing, especially for venture capital (VC.
The Commission's main role could be to drive the further expansion and improvement of the Single Market, e g. for venture capital,
From a European perspective, this means e g. to realise a single market for venture capital. 10:
Data from various secondary sources is used here not only for exhibiting numbers of high-growth enterprises but also for other indicators such as venture capital provision.
One with OECD economist Jonathan Potter, one with US venture capital and innovation policy advisor Burton Lee,
High-growth finance includes primarily the availability of venture capital through business angels, specialised private companies, other corporations or public funds,
Venture capital should correlate with companies'growth stages. As regards real estate, innovative start-ups may benefit from business incubators as well as science and technology centres.
Dept, venture capital Real estate: science & technology parks Incentives Individual benefits Income: direct, e g. taxation, bankruptcy regulation;
These include wave ventures, new product in new category ventures, new product in existing category ventures and idea transfer/transplant ventures. 29 The wave strategy reflects the dynamic forces that can come out of early-stage companies.
Companies like Microsoft Genetech, Google and Facebook not only grew rapidly but also stimu-28 For recent studies on the issue of determinants of firm growth see Moreno/Casillas (2008);
See also Minniti (2008), p. 787, suggesting that in developed countries labour market reforms may be particularly conducive to support the growth of high-performance ventures. 34 Quotation from INNO-Grips Newsletter October 2010
business angel finance, venture finance, IPOS Dominant service Basic (standard) advice for firm creation, business planning, small business operation Experience-based
advice for venture finance; strategic planning, internationalisation; organisational growth Resource distribution principle Ensure equal access for everyone (resource spread) Select promising recipients (resource focus) Regulatory Emphasis Life cycle focus Remove bottlenecks to new
%the European commission (30%)and financial institutions (8. 8%),is a specialist provider of SME risk finance across Europe and a major player in the European venture capital market.
In 2009, the EIF combated the fall out of the financial crisis for venture funds in their fundraising efforts.
EIF can usually invest 10 to 25%of the total equity of the intermediary venture capital fund or up to 50%in specific cases;
EIF can invest 7. 5 to 15%of the total equity of the intermediary venture capital fund or, exceptionally, up to 50%.
The programme seeks to bridge the gap between start-up and larger international venture capital funding. Accelerace's services are sponsored for free
and whether the company may be a venture case. Timing is essential, says Accelerace senior management consultant Rebecca Scheel the applying companies need to be at the right development stage
after three months it may turn out that the company is not a venture case. After the programme it will be clear
Policies for high-growth innovative SMES v1. 6 34 omy together with Finland's most important R&d&i funding agency Tekes and Veraventure, a venture capital investment company
serving as the hub for public early-stage venture capital investments. VIGO is a type of incubator that focuses on young enterprises with high growth potential.
In January 2011 it organised the first Enterprise Finland Venture Forum, connecting 37 national and international financiers with 25 Finnish growth companies. 75 At the beginning of 2008 the innovation department of the Ministry of Employment and the Economy established a division for growth ventures.
The rationale behind creating this division was that the needs of growth companies may substantially differ from others,
which requires a special growth ventures policy 76.72 See http://www. vigo. fi. 73 See Murray/Hyytinen/Maula (2009),
For example, the label of The swiss CTI Start-up coaching programme has become an important determinant in attracting venture capital, angels'investment and other financing partners
Companies with considerable growth perspectives may be looking for venture capital i e. professional equity co-invested with the entrepreneur to fund an early-stage (seed and start-up) or expansion venture. 92 Venture capital is a subset of private equity.
Other sources of finance include leasing, factoring, hire-purchasing and trade credits. Finally, companies may use public subsidies in the form of direct grants, reduced interest rates for bank loans or deficit guarantees.
Discussions and analyses about high growth of companies often focus on venture capital. There are empirical indications that a well-functioning venture capital market is conducive to growth not only of single companies but also of national economies:
Venture capital injects economic dynamism: An increase in VC investments of 1 of GDP is associated statistically with an increase in real GDP growth of 0. 30 pp.
Early-stage investments have an even bigger impact of 0. 96 pp. The direction of causality is not always easy to establish.
often reliable data are not even available at the country level. 96 92 Definition of the European Venture capital Association,
%and Italy (12%).97 The economic and financial crisis has had starkly deteriorating effects on the venture capital market.
it is still difficult for high-growth oriented companies seeking venture capital to find adequate funding.
EVCA (2011) The level of development of venture capital markets and thus the difficulties to obtain VC are very different among European countries see Exhibit 4-3. The UK is the single largest VC market in Europe;
or expansion phase under the Competitiveness and Innovation framework Programme (CIP) for the years 2007 to 2013.105 Single market for venture capital investment:
At present, there is no integrated European venture capital market-the regulatory situation varies widely from country to country(..
The EU is seeking to unify the venture capital market(..To achieve this, it is promoting cross-border venture capital investments. 106 However,
while there is a consensus among Member States on promoting mutual recognition of national frameworks, no significant measures have been taken yet that would make fundraising
and Venture capital Association (EVCA) suggests to adapt and refine the existing structures of public support for venture capital
in order to increase its competitiveness, attract private investment and also to lead to a phased reduction of its dependence on public money. 109 The EVCA suggests a Venture capital Action Plan 2010-2020 for the EU,
following the EU's Risk capital Action Plan of 1998. According to the EVCA, the European VC market is fragmented highly
including the support of business ventures through dedicated funds fuelled by domestic and overseas sources as well as by investing in a fund of funds.
The government also plans to encourage venture capital investment from overseas funds, oil money, and other sources.
the Canadian experience suggests that a government focus on high-tech SMES combined with adequate levels of venture capital financing holds the greatest potential for creating gazelles and that these firms show unusual resiliency.
The Canadian experience (see section 5. 3) of linking governmental R&d funding with venture capital investment suggests to focus high-growth policies on technology-based industries
This may for example mean to focus policies on improving access to venture capital instead of access to micro credits. 142 How are policies for innovative high-growth SMES distinct from general SME policy?
and thus their competitiveness and the policies have supported the growth of the venture business. However, some of the traditional SME policies have been criticised for inefficiency and ineffectiveness.
the venture businessmen's special lecture programmes on entrepreneurship at universities; the youth start-up education programme;
Inno-biz and measures to strengthen venture capital investment The Korean government intensively fosters the programme inno-biz (acronym for innovative business.
innovative firms, ventures and firms with outstanding managerial innovations. The programme does not explicitly aspire to high growth
but at least the venture category implicitly carries the high growth objective. A company may belong to two or three categories at the same time.
Ventures, according to the SMBA definition, are firms in which venture capital is invested, which invest in R&d and
which commercialise new technology. 147 SMBA continues to promote the venture sector as a new growth engine.
The government is supporting business ventures, through the support of a one trillion won private fund, by investing in a Fund of Funds in 2009 as well as through a two trillion won fund with inducement of further funds
from the fiscal administration, the Korea Development Bank and foreign and private funds by 2012.
The government also plans to encourage venture capital investment from overseas funds oil money, and other sources.
147 See http://eng. smba. go. kr/pub/poli/poli040108. jsp#cer01 for the SMBA's venture certification criteria.
%In addition, the government plans to facilitate venture investment by institutional investors, the post office, insurance firms, universities,
Since the Korea Venture Fund has confirmed other investors, small investments of less than one billion won are allowed at any time.
In April 2009, the government created a venture ecological system that integrates the capabilities of newborn venture companies and of the leading venture companies in the market.
the government intends to create a ten billion won fund and support joint R&d and overseas marketing for ventures.
This programme is designed to promote the survival and growth of newly established venture companies. SMES are, for example, provided with land, consulting services,
In 2002 the Korean government recognised Donghwa Entec formally as a venture and an Inno-Biz in terms of government support schemes,
They comprise an increase of SME's R&d activities, an expansion of venture business, and various impacts on different areas of SME performance.
Expanded venture business All related indicators confirm the high growth in the venture business from 1998 to 2008,
For example, the number of certified ventures increased from 2, 042 firms in 1998 to 15,401 firms in 2008,
and there are now five graduate schools specialising in the venture business. However, figures for 2009 may indicate a decline caused by the worldwide economic crisis.
Development of the venture business in Korea 1998-2008 Indicator 1998 2008 Creation of venture firms Number of certified venture firms 2, 042 15,401 Thereof:
established by professor or researcher 582 1, 555 Number of graduate schools for venture business 0 5 Venture capital (in 100 mio.
KRW) New venture investments 7, 870 12,041 Newly established venture funds 4, 929 11,954 Foreign venture funds 30 702 Source:
Related services include for example law firms specialising in intellectual property and new ventures, human resources headhunting, consulting and market research,
policies to back venture finance Summary The Canadian experience suggests strongly that a concentrated focus by governments on high-tech based SMES combined with adequate levels of venture capital (VC) financing holds by far the greatest potential
Recently, the US venture capital sector has been lobbying hard to change the access rules to SBIR funding for SMES controlled by venture capital firms.
Background and objectives of VC funding and government assistance Canada Current situation in venture funding The Canadian experience suggests strongly that a concentrated focus by governments on high-tech based SMES combined with adequate levels of VC
when a combination of venture capital 150 See Cooper (2009). Policies for high-growth innovative SMES v1. 6 69 and IRAP assistance is available,
firms at the development stage with high burn rates have had to cut back activities. Even with these cutbacks, many of these firms have only one year or less left of funds available to them from earlier financing rounds,
According to the Canadian Angel Investment Network their members are currently investing over CAD 3 billion in Canadian businesses each year. 155 Venture capital:
USA Venture capital: The US experience is similar to that of Canada, in terms of the collapse of financing since the bubble burst in 2000 where VC dropped from a peak of 100 billion USD to just 18 billion USD in 2009.
there were state government sponsored VC funds in 22 states with 2. 3 billion USD in venture funds
However, a study by Cooper of 2, 240 firms which had received venture capital (CAD 18 billion dollars) between 1995 and 2005 showed much higher levels of gazelles creation at 12%in the 1, 500 technology based firms,
The Effects of Government-Sponsored Venture capital: International Evidence. 162 See Government involvement in the venture capital industry International comparisons,
http://www. cvca. ca/files/Downloads/Government involvement in the vc industry intl comparisons may 2010. pdf. 163 See Hellmann 2005 study. Policies for high-growth innovative SMES v1. 6 73 ticular interest in the richest program.
The Effects of Government-Sponsored Venture capital: International Evidence. CVCA, Canadian Venture capital Association (2009: Why Venture capital is Essential to the Canadian Economy-The Impact of Venture capital on the Canadian Economy.
Available at: http://www. cvca. ca/files/Downloads/CVCA VC IMPACT STUDY JAN 2009 FINAL ENGLISH. pdf 2010 October. CVCA (2010) and Kirk Falconer (2010) Thompson-Reuters. See http://www. cvca. ca/files/News/CVCA Q4 2010 VC PRESS RELEASE FINAL FEB 16 2011. pdf and http://www. canadavc. com/files
/public/Reseau%20capital 02-11 %20english. pdf Cooper, Denys (2009: High Growth and Survival of Government Funded SMES with Venture capital in Canada.
APEC SME Innovation conference 2009, Seoul. Duruflé, G, Government involvement in the venture capital industry International comparisons. http://www. cvca. ca/files/Downloads/Government involvement in the vc industry intl comparisons may 20 10. pdf. Gompers/Lerner (2004:
The Venture capital Cycle, Chapter 13, http://www. google. ca/#hl=en&biw=958&bih=444&q=lerner+impact+sbir&aq=f&aqi=&aql=&oq=&gs rfai=&fp
=23e 9afdc1c4696ce, Hellmann, Ilyaszade and Lee, 2010 An Evaluation of the Venture capital Program in British columbia, http://strategy. sauder. ubc. ca/hellmann/pdfs/Hellmann%20schure%202010
%20venture%20capital%20report. p df. Hellmann, Egan, and Brander, A Comparison of Exit Values across Canadian provinces and US States October 2005.
Ten Years'Lessons from the Canadian Labour-Sponsored Venture capital Corporations. NAS 2009: Awards-U s. Small Business Administration Tech-Net Database;
http://www. nasvf. org/pdfs/VCFUNDSREPORT. pdf). Venture Impact: The Economic Importance of Venture capital Backed Companies to the U s. Economy, 2008, June at http://www. asiaing. com/venture-impact-the-economic-importance-of-venture-capital-backedcompanies-to-the-u-s-ec
. html Wessner, Charles W. ed.)(2009: An Assessment of the Small Business Innovation Research Program at the Department of defense.
and then in the later commercialisation stages they prefer bank loans over equity finance, venture capital,
and acts as a venture capital fund in the early stages. An incubator company receives a development grant of up to 500,000 US dollar for a period of two years.
and other public authorities to promote joint Israeli-EU R&d ventures within the EU's R&d Framework Programme.
ventures are created not and obviously the keenly sought high growth ventures are realised not either. 173 Justification dilemma:
The crucial argument against direct and selective promotion of high-growth SMES is: Why promote those SMES that are successful anyway?
-growth innovative SMES v1. 6 90 Enhanced access to finance Enhancing the European venture capital market The European venture capital market is fragmented highly
and lacking intermediaries (see section 4. 2. 2). Opportunities for companies with high growth aspirations to find venture investors are thus suboptimal.
and venture capital Case studies conducted for this report indicate that governmental policies may support access to finance for high growth SMES indirectly.
see also EVCA (2010), p. 13.181 The EC launched a consultation on a new European regime for venture capital in June 2011.182 Statement from Allan Martel, member of the advisory board for this Policy Brief.
Measures aimed at providing funding for high-growth new ventures may find little opportunity to fund growth
Furthermore, governments should also not aspire to eliminate new venture failures. 192 3. Policies for general SMES
e g. for venture capital. 8. Enhance coaching opportunities: Qualified coaching may help grow SMES and cross the chasm between pilot markets and mass markets.
EVCA, European Private Equity and Venture capital Association (2011: Creating lasting value: Yearbook 2011. Harms, Rainer;
Venture growth new findings from a multilevel perspective Guest Editors'Introduction to the focus issue on growth.
Venture capital adds economic spice. Author: Thomas Meyer. Economics and politics research briefing. 14 september. Ministry of Employment and the Economy (2011:
Enterprise Finland Venture Forum: https://www. efvf2011. b2bmatchmaking. com/p index. php, last accessed May 2011.
Burton Lee, Innovarium Ventures, 17 august 2010. Rebecca Scheel, Accelerace programme, Business Advisor, 5 january 2011. Policies for high-growth innovative SMES v1. 6 104 Annex 1:
and Entrepreneurship 3 International Journal of Entrepreneurship and Innovation Management 4 International Small Business Journal 5 Journal of Developmental Entrepreneurship 6 Venture capital 7 International
in other words the maximum value serves as a benchmark. We then computed the average of our numeric results
, to fi nance venture and social innovation funds, to incentivise large scale community level innovations, to transform the public sector
The existing support for smaller or innovative companies (grants, seed, venture capital, loan guarantees) is fragmented and fails to mobilise private sector investment effi ciently or consistently.
European Venture capital Association Improving the access to public fi nancing for innovation by business should be a high-priority for the EU. The acceleration of pan-European venture capital funds is a positive development,
it is very important that a truly European Online Payment System would be developed (like ideal in The netherlands) 22 Current venture capital
BASF's initial investment was €200 thousand together with in kind contributions http://www. basf. com/group/pressrelease/P-09-155 23 Accelerate pan-European venture capital funds
including corporate venture funds, and must be managed professionally avoiding political interference or micromanagement from governments or the European commission.
which went on to catalyse the creation of the UK venture capital market. We believe similar leadership from the European commission
and how does it the area benchmark internationally? Do we have critical mass in this area
A wide range of actors were involved including representatives from academia, industry, entrepreneurs, venture capital, industry representative bodies, public sector bodies
and how does it the area benchmark internationally? Do we have critical mass in this area
A wide range of actors were involved including representatives from academia, industry, entrepreneurs, venture capital, industry representative bodies, public sector bodies
whenever similarities or complementarities with other regions are detected. 20 The public administrators of the Top Technology Region contracted The swiss research firm BAK Basel to benchmark
The research resulted in an analysis and international benchmark of the region's strengths and weaknesses.
Examples of such activities include technology transfer, knowledge exchange, venture funding, regional economic development, business services
and clusters Venture and seed capital Guarantee schemes for financing for innovation Experimental instruments Cross-border research centres Open source-Open science Markets for knowledge Regional industrial policy;
and venture capital funds R&d subsidies or tax incentives Management advice Incubators with'soft'support'Proactive'technology centres Audits,
and for cooperative projects Participation in national and international competitive research programmes Research spin-off promotion schemes (e g. regional seed and venture capital funds) Regional high-tech clusters, S&t Parks,
and competitiveness poles relevant for regional industry Entrepreneurship and spin-off support (business plans competitions, regional venture capital funds) Incentives for regionally-relevant public research Entrepreneurship support (networks of individuals, training courses,
regional seed and venture capital funds) Densification and internationalisation of regional production clusters Regional public procurement oriented towards innovation Technology platforms (linking technical schools and SMES) Technology transfer centres in relevant sectors,
and transfer of knowledge between research organisations and various kinds of SMES and a blueprint paper on new emerging forms of SME support in the context of open innovation and public-private partnerships (including benchmarks).
Regions have thus to benchmark themselves with any other regions to assess where the real
guarantee funds and venture capital funds. These funds the setting-up of which depends on the choice of the Member States
and the firms benefiting from this seem to have an exceptionally good access to private venture capital for their further growth.
/venture capital, thanks to the faster market access and return-on-investment for innovative firms. Barriers and challenges The main reasons why still too few public procurers in the EU buy innovations and why the procurement of innovation is used still hardly as an innovation support tool are:
Does it foresee an appropriate mix of grants, loans and financial engineering (venture capital? 5. Is the strategy outward looking
as%of the total scientific publications in the country 3. 8 (2011) 5 7 International scientific co-publications for 1 mil. inhabitants 148 200 300 Venture capital
The accumulation of societal know-how makes it easier for new ventures to arise and for new ideas to be put in place.
The accumulation of societal know-how makes it easier for new ventures to arise and for new ideas to be put in place.
and for maintaining an oversight of the investment activity of funds supported by Enterprise Ireland under the various seed and venture capital programmes.
or even reimbursement finance (loans, micro credits, venture capital, etc..The most repeated instruments in the RIS3 analysis are grants (a traditional support framework in Spain),
Itiswellestablishedthat Venture capital (VC) iscrucialforsmallandyoung firms performance (Bottazzianddarin, 2002; Samilaandsorenson, 2011. The resultsofthisstudywouldsuggestthatthevcrolecouldbe particularlyimportantwhenmftarenotwellfunctioning, andso vertical integrationisabetteroptionforsmall firms inorderto profit fromtheirinventions.
and to furnish potential entrepreneurs with skills for successfully setting up ventures is only now becoming clear.
increasing the contribution of new entrepreneurial ventures and small and medium-sized enterprises (SMES) to innovation.
and entrepreneurship in new ventures is itself an important development. Whereas in the past innovation policy worked through investments in research and development,
New business ventures and SMES have a number of critical roles to play in supporting innovation.
New spin-off ventures enable the commercialisation of knowledge that would otherwise remain un-commercialised in large firms, universities and research organisations.
to create linkages between SMES and foreign direct investment ventures; and to attract highly-skilled labour from abroad.
securing better local embedding of foreign direct investment ventures, and attracting highly-skilled labour from abroad:
Embedding of foreign direct investment ventures should be promoted through integration of inward investment policies and cluster policies;
Experiment with innovative institutional arrangements between civil society, governments, financial institutions and social enterprise ventures. Undertake research into social entrepreneurship
SMES and new business ventures are important players in this new environment. They have a key role in processes of creative destruction, knowledge exploitation, breakthrough and incremental innovation,
and improving institutional environments for social entrepreneurship. 1. INTRODUCTION SMES, E 24 NTREPRENEURSHIP AND INNOVATION OECD 2010 The creation of new business ventures and innovation in existing
Venture capital firms can now provide capital quickly to the most promising ventures whether or not they are in a large firm context.
hence providing an exit to the original innovators and venture capital investors. They may also be involved even more closely for example in venture investing
provision of complementary assets and technologies, and even the provision of key people, including the would-be innovating entrepreneur.
but can occur either through or independent of business ventures. Social entrepreneurship and social innovation are of fundamental importance today
Our emphasis in this book is on two parts of the spectrum, namely the new start-up venture
Creative destruction Venture creation and SME growth renew economies by forcing the contraction, exit or upgrading of incumbent competitors.
Knowledge spillovers New venture creation and knowledge exchanges between knowledge-generating organisations and SMES also enable the commercialisation of knowledge that would
the University of British columbia has a venture fund, the University of Guelph has raised money for commercialisation by listing its intellectual property portfolio on the stock market,
Considering entrepreneurship as all venture start-ups, Audretsch et al. 2006) and Acs et al. 2004,2005, 2009) suggest that commercialisation of knowledge by new start-ups explains part of the link between entrepreneurship
and new ventures are active in breakthrough innovation in sectors such as biotechnology and information and communication technologies.
Policy responses such as grants, loans, loan guarantees, mezzanine finance, seed capital, venture capital, business angel finance and investor readiness programmes need to be explored (OECD,
Ausindustry administers and delivers a range of over 30 business support programmes involving innovation grants, tax and duty concessions, small business development, industry support and venture capital worth AUD 2
These reviews identify strengths and opportunities for the firm, benchmark against best practices, and furnish access to world-class business tools, processes and technology.
and start-up coaching and early links with private venture capital funds. A 2004 evaluation showed that approximately half of the firms selected for the programme fail.
Private venture capital funds feature a similar failure rate. Given the earlier stage of the firms financed by the programme,
often preventing traditional bank financing and even access to private venture capital funds. Participation in the programme acts as a signal to private investors, crowding them in rather than out.
other companies and venture capital funds can be co-owners. In biyearly meetings of the centres, knowledge and best practice are shared,
In Flanders, the Participation Company Flanders works to boost the innovativeness of regional SMES, by leveraging additional risk capital for new ventures (Vinnof:
and the Economy (TEM) is building a modern growth entrepreneurship policy that seeks to create first-rate conditions for Finnish growth ventures.
such as serial entrepreneurs, to become mentors and active developers in new ventures. Such experts are positioned well to offer high-quality advice
and to prepare them to be more investment-ready for venture capital placements. The first three start-up accelerators were selected by a steering committee in June 2009.
The fund invests venture capital in young, high-opportunity technological companies implementing promising research results in an entrepreneurial manner.
demonstrating the success of the concept in stimulating the early-stage venture capital market. Exist EXIST is a support programme of the Federal Ministry of Economy and Technology.
and networks in advanced research sectors), the creation of intermediary organisations and the set up of incentives for venture capital funds and of grant schemes for special categories of entrepreneurs (e g. the youth and women's entrepreneurship).
helping the early stage and growth phase of innovative enterprises by venture capital funds and financial instruments, e g. the New Hungary Venture capital Programme (HUF 40.5 billion;
New Business Venture Fund The government launched a programme in 1998 entitled the New Business Venture Fund,
it has promoted the creation of business angel and venture capital funds, which had been virtually absent in the country.
which aims to promote and mobilise the Dutch venture capital market to the benefit of high-tech starters;
and supply of venture capital, seeks to encourage innovation and entrepreneurship, and contributes to facilitating technology transfer.
while the supply side comprises venture capital companies. FINCRESCE, also launched in the second half of 2006,
the company was created to help increase the amount of venture capital investment for SMES in the Slovak economy.
and the venture capital market by facilitating loans to risk-capital societies interested in sharing the risk with the firms.
Four per cent of the participants attended courses on Venture Training, 11%participated in the Venture Plan module, 15%attended courses on Venture Challenge and 70%courses on Venture Ideas.
Also, the creation of Regional Venture capital programmes has addressed the problem of lack of risk capital, particularly in more peripheral areas.
-venture capital funding on a competitive basis. Further, by creating new information about the feasibility and commercial potential of technologies held by small innovative firms, SBIR awards aid investors in identifying firms with promising technologies.
which virtually established the thriving Israeli venture capital industry. The lessons from Yozma are being studied closely now as the government plans direct involvement in a new biotechnology venture capital fund,
the first government policy involving direct intervention in the private equity market for innovation since the 1990s.
Established with a budget of USD 100 million in 1993, Yozma made ten investments in USD 20-25 million venture capital funds,
In eight of the ten new venture capital funds both general and limited partners exercised this option,
commercialisation support, venture financing, and infrastructure development. As concerns support to commercialisation, the bulk of government funds is distributed through two organisations:
and to develop co-operation with venture capital funds. RUSNANO RUSNANO was organised by the federal government in 2007,
Venture Funds In 2006 the Ministry for Economic Development launched a programme for regional venture funds in 19 Russian regions.
These are closed-end investment funds in high-risk ventures on condition that private investors match the sums.
Overall capitalisation of venture funds in Russian regions totals about USD 300 million. Meanwhile the Russian Venture Company (RVC) was established also in 2006 and financed by the federal budget;
its current capitalisation is about USD 900 million. RVC plays the role of the Federal Fund of venture fund (fund-of-funds model), stimulating venture investment and financial support of the high-tech sector. 2. RUSSIAN FEDERATION SMES, ENTREPRENEURSHIP
AND INNOVATION OECD 2010 123 Russian Federation A. Definition of SMES Size Employees Annual turnover Micro 1-15 Up to 1. 7 million euro
and market functioning as proved by the frequency of the multi-venture process, i e. the creation of more than one firm by the same entrepreneur throughout his/her life (Ronstadt, 1988).
and technologies is a critical input to the entrepreneurial venture and can be acquired through the participation of entrepreneurs and SMES in local and global knowledge flows.
as demonstrated by the multi-venture process. It is also critical to the innovation performance of SMES.
and policies should strive to embed it by developing linkages between FDI ventures and local firms and research organisations.
SMES, Entrepreneurship and Innovation OECD 2010 163 Chapter 4 Entrepreneurship Skills This chapter describes the role of entrepreneurship skills in driving successful new venture creation
and running new business ventures or innovative projects in existing firms. They involve risk assessment
and the desire to implement innovation (e g. starting a new venture, finding new markets, introducing new organisational models)
and running new business ventures and innovative projects in existing firms, such as risk assessment and warranting, strategic thinking, self-confidence,
small business management and new venture creation. In order, the most common methods of teaching methods were business plans, discussions, guest speakers, case studies and lectures by business owners.
outreach (scope of university networks co-operation with incubators, alumni networks, access to experienced practitioners, access to venture capital) and evaluation (degree of monitoring and assessment of entrepreneurship activities.
All of these developments demonstrate the importance given to the creation of new growth potential ventures out of universities.
and researchers to make a first step towards the creation of a venture. Yet, in order to avoid over protection,
venture capital finance, product life cycles and so on. 4. ENTREPRENEURSHIP SKILLS SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 173 And more experiential learning methods should be developed for example drawing on the entrepreneurship skills created in drama,
and will give the economy of Scotland the skills, new ventures and entrepreneurs it needs for growth.
could be classified as social entrepreneurs (defined in the survey as being involved in founding and running a social venture younger than 42 months).
instead on the landscape of social entrepreneurship to suggest a typology of entrepreneurial ventures in order to identify those that could be included in the social entrepreneurship field (Neck et al.,
The clearest examples of this would be the increasing amount of venture philanthropy made available in Europe,
a commercial venture created to help companies prevent accidents and muscular-skeletal disorders among its workers through regular physical activity exercises in the workplace.
Support further research Governments should support further research into the field of social entrepreneurship and its main components (social enterprises, social economy organisations, social venture business, nonprofit organisations, etc.
social purpose ventures; traditional ventures; social consequences ventures; and enterprising nonprofits. Each of these has its own characteristics.
They argue that only social purpose ventures (for-profit) and enterprising nonprofits belong to the landscape of social entrepreneurship.
Regardless of profit orientation, social entrepreneurs identify opportunities to solve social problems: both people and planet problems (p. 18). 5. Brouard and Larivet (2009) analyse most of the existing definitions of social entrepreneurship
and identify a set of primary and secondary characteristics of it. The primary characteristics are as follows:
Haugh, H. 2007), Community-Led Social Venture Creation, Entrepreneurship: Theory & Practice, Vol. 31, No. 2, pp. 161-182.
What Awaits Social Entrepreneurship Ventures? Edward Elgar Publishing, Cheltenham. Phills, J.,K. Deiglmeier and D. Miller (2008), Rediscovering Social Innovation, Social Innovation Review, Vol. 6, No. 4, pp. 1-11.
job creating or licensing ventures undertaken by individual social entrepreneurs, non profit organisations, or nonprofits in association with for-profits.
or venture itself rather than returned to investors. p. 5) Leadbeater 2006 One way to define social entrepreneurship would be through
and 5) is/are unusually resourceful in being undaunted relatively by scarce assets in pursuing their social venture.
and environmental goals by enterprising ventures Social entrepreneurship is first and foremost a practical response to unmet individual and societal needs.
in order to enhance social wealth by creating new ventures or managing existing organisations in an innovative manner.
and foreign direct investment ventures and attracting highly-skilled labour from abroad. 3. Strengthen entrepreneurial human capital Build up entrepreneurship education in universities
governments, financial institutions and social enterprise ventures. Undertake research into social entrepreneurship and social innovation and their main components in order to create clear definitions
create and manage a venture to make social changes. Social entrepreneurs are change-makers and move ideas.
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