Enterprenureship Essay

650 Words3 Pages
Entrepreneurship Development Highlights of IDB Group’ s Approach Young Arab Entrepreneur Forum “Growing Business in Jordan”June 19, 2006 - Jordan Entrepreneurship: The X-factor Economic Growth is a function of factors of production – labour, capital and an X factor. This X factor is determined greatly by the ability of individuals in an economy to take all these factors of production and produce a value added product or service. This ability is what’s called entrepreneurship. 2 Entrepreneurs’ contribution to economic development Factors of production New Projects Development Entrepreneurs New Markets & Growth New Skills Innovations 3 Constraints facing entrepreneurs in IDB member countries Lack of entrepreneurship culture in some countries. Over-taxation, complex government requirements & regulations, and tedious procedures. Difficulty raising capital and guarantees. Lack of adequate incentives. Poor project management skills and limited resources and experience in marketing. Lack of adequately trained labour force 4 Promotion of entrepreneurship: the role of the IDB Group Promoting entrepreneurship is part of IDB Group’s efforts to promote private sector development. Increased emphasis by IDB has been laid on private sector development since the early nineties. as illustrated by establishment of ICIEC, ICD, and ITFC, and IDB’s efforts to develop an Islamic financial industry. Promotion of entrepreneurship by the IDB Group is carried out through several direct and indirect complementary means. 5 IDB Group’s contribution to Entrepreneurship Promotion Development of SMEs Enabling environment Micro-financing Cross-border investment Entrepreneurship Promotion V.C Funds Enterprise stewardship Reliance on Contractors/consultants from member countries IDB Group’s approach for supporting SMEs
Open Document