The GEDI index developed by Professors Zoltan Acs and Lazslo Szerb in 2008 distills the complex relationship between individuals, institutions and entrepreneurship into clear and implementable results. Countries are ranked identifying strengths and indicating where improvements are needed. The 2011 GEDI has received global acclaim with articles appearing in The Wall Street Journal, The Economist and other international press. National policy-oriented country reports based on GEDI methodology have been presented in the USA, the UK and the Netherlands. The first edition of the GEDI book containing 71 countries was published in 2011. The 2012 GEDI index has been expanded to include 79 countries. The forthcoming 2013 GEDI index will include 118 countries.
The Global Entrepreneurship Monitor (GEM), the World Bank’s Ease of doing Business Index and the World Economic Forum’s Global Competitiveness Index are widely used for entrepreneurship policy and program development. However these indices contain a number of shortcomings:
- No distinction is made between quality and quantity entrepreneurship so that a traditional agricultural business established in Peru is given equal importance as an internet-related venture in Silicon Valley;
- Environmental factors are not taken into account even though the efficiency and sophistication of the institutional setting could have a major influence on the quality of entrepreneurship;
- Since self-employment and business ownership ratios decline as a country develops, indices that rely on them appear to show the higher levels of development are associated with decreasing levels of entrepreneurship. This is inconsistent with mainstream economic theories which posit a direct connection between entrepreneurship and development;
- An output based index would not necessarily give policymakers good guidance, as it can prompt a focus on increasing the quantity of entrepreneurship, when quality is of greater importance.
The GEDI index includes:
- Sufficient complexity to capture the multidimensional nature of entrepreneurship;
- Indicators encompassing quality-related differences, in addition to quantitative or level-related measures;
- Individual-level as well as institutional variables;
- The novel Penalty for Bottleneck (PFB) methodology which allows for the interrelationship between all variables within the index. The resulting index score is penalized by the bottleneck created by the lowest pillar value;
- Results presented in an ‘easy to understand’ graphic format that facilitates policy and program interventions.
The Center for Entrepreneurship and Public Policy (CEPP) currently offers a number of programs related to the GEDI Index including detailed country reports, regional analyses, consultancies, workshops and Executive Education programs.
To view the 2012 GEDI book country rankings click here
To purchase the 2012 GEDI book via Amazon.com click here
To purchase an electronic version of the 2012 GEDI Index for only $31.20 from Google eBookstore click here
For more information see also : The Global Entrepreneurship and Development Institute