Scandinavia at the top for entrepreneurship
A strong entrepreneurial climate in which citizens can pursue new ideas and opportunities to improve their lives leads to higher levels of income and wellbeing. The Entrepreneurship & Opportunity (E&O) sub-index captures these effects by measuring countries’ performance in three areas: entrepreneurial environment, innovative activity, and access to opportunity. As illustrated in the chart on the right, the variables of the sub-index are categorised according to these areas.
Low business start-up costs and a positive perception of a country’s entrepreneurial environment contribute to improving citizens’ economic prospects and overall wellbeing. The sub-index also evaluates a country’s ability to commercialise innovation and measures the technological and communication infrastructure that is often essential to successful commercial endeavours. It further provides a snapshot of access to opportunity by tracking inequality and by asking citizens whether they believe their society to be meritocratic.
The E&O sub-index builds upon research on how entrepreneurship drives innovation and generates economic growth, and the positive effects that result from an individual realising his or her entrepreneurial potential. When a country improves the likelihood that entrepreneurial initiative will pay off and individuals experience the satisfaction of entrepreneurial success, a society’s prosperity increases overall.