Enterprise

Enterprise involves seizing new business opportunities. The importance of a vibrant enterprise culture has long been recognised as essential for growth. Whilst enterprise is important for both new and incumbent firms, this section mainly focuses on new entrants, and the ability and willingness of individuals to start and develop new businesses. There are a number of features that contribute to the overall state of enterprise in the economy:

• Entrepreneurship – the motivation for business creation and business growth in an economy, seizing opportunities and being rewarded for success.
  
  
• Capital markets – efficient and effective financial markets provide organisations and individuals with funding for new ventures and investment¹
   
  
• Socio-cultural attitudes – social and cultural norms influence a communities attitudes and preferences.
  

¹ In previous editions of the Productivity and Competitiveness Indicators, the financial market indicators were split into three sections covering venture capital, parallel markets and main equity markets. In this edition, the parallel markets and the main equity markets indicators have been subsumed into a single indicator under the heading ‘Equity markets’. Similarly, the entry and exit rates and fast growing firms indicators have been subsumed into a single indicator under the heading ‘Entrepreneurship’.