Lessons in Entrepreneurial Cities from India

Last week, Jonathan Ortmans predicted that 2014 will see cities take the center stage in entrepreneurship policymaking. So we thought we should take an occasional look at how this trend is taking shape overseas -- starting with a new paper from the World Bank on India. 

The latest issue of  “Economic Premise” from the World Bank highlights a recent working paper by authors Ejaz Ghani, William Kerr, and Stephen D. O’Connell, that examines the questions: “Why do some cities in developing countries attract more entrepreneurs and become engines of growth? Why are other cities short of entrepreneurs?” 

The authors' spatial location study explores the choices of new and young entrepreneurs in two sectors in India, manufacturing and services. Covering 630 districts, the authors found that the two most consistent factors that predict overall entrepreneurship for a district are:

  • The level of education of its population
  • The quality of local physical infrastructure

These and other lessons from across the globe show not only best practices, but also how policymakers in both developed and developing countries are competing to attract new entrepreneurs in order to inject economic growth and job creation into their cities. According to Smart Cities Study: International study on the situation of ICT, Innovation and Knowledge in Cities, by 2012 most cities (68%) had developed some type of program to support entrepreneurship in cities, except in Africa, where the number of cities that have developed such initiatives was still very small (although the numbers in Africa may change thanks to new programs such as LIONS@FRICA and Startup Africa).



comments powered by Disqus