TEN Pillars of Entrepreneurship
Pillar 1: Startup Skills. Launching a successful venture requires the potential entrepreneur to have the necessary startup skills.
Pillar 2: Risk Acceptance. Of the personal entrepreneurial traits, fear of failure is one of the most important obstacles to a startup. Aversion to high-risk enterprises can retard nascent entrepreneurship.
Pillar 3: Networking. Networking combines an entrepreneur’s personal knowledge with their ability to identify more viable opportunities, and can access more and better resources.
Pillar 4: Opportunity Startup. This is a measure of startups by people who are motivated by opportunity who are believed to be better prepared, to have superior skills, and to earn more than what we call necessity entrepreneurs.
Pillar 5: Human Capital. The prevalence of high-quality human capital is vitally important since the quality of employees also has an impact on business development, innovation, and growth potential.
Pillar 6: Competition. Competition is a measure of a business’s product or market uniqueness, combined with the market power of existing businesses and business groups.
Pillar 7: Product Innovation. New products play a crucial role in the economy. New Product is a measure of a country’s potential to generate new products and to adopt or imitate existing products. In order to quantify the potential for new product innovation, an institutional variable related to technology and innovation transfer seems to be relevant.
Pillar 8: High Growth. This is a combined measure of the percentage of high-growth businesses that intend to employ at least ten people and plan to grow more than 50 percent in five years with business strategy sophistication.
Pillar 9: Internationalization. Internationalization is believed to be a major determinant of growth. A widely-applied proxy for internationalization is exporting. Exporting demands capabilities beyond those needed by businesses that produce only for domestic markets.
Pillar 10: Risk Capital. The availability of risk finance, particularly equity rather than debt, is an essential precondition for fulfilling entrepreneurial aspirations that are beyond an individual entrepreneur’s personal financial resources.