In continuation of the strategic direction set forth in the 2022 IDE Report, the current edition builds upon the exploration of the interplay between systemic conditions conducive to dynamic entrepreneurship and the imperative of sustainable development. Our analysis reveals a positive correlation between the systemic factors fostering entrepreneurship, the resulting output manifested in entrepreneurial dynamics, and the overall attainment of sustainable development objectives. In this relationship, entrepreneurial dynamics play an intermediary role. Better conditions for entrepreneurship translate into higher levels of entrepreneurial dynamics, which, in turn, result in higher levels of sustainable development.
Given the role of systemic conditions in the context of a wider approach to driving sustainable development through entrepreneurship, an examination of the IDE results for each of the systemic conditions becomes imperative. The main takeaways from the 2023 IDE Ranking are the following:
1. The top-performing countries in terms of providing the best conditions are Sweden, the Netherlands, Finland, and the United States. They all score around 60 points on the overall index. The top 10 list also includes Israel, Ireland, Norway, the United Kingdom, South Korea, Canada, and Germany.
2. In terms of regions, some countries in Southeast Asia and the MENA region have moderately high values. Following with moderate levels are countries in Mediterranean Europe, Eastern Europe, and the most advanced ones of Latin America. The lowest-ranking countries, with scores for conditions below 30 points, are in Latin America, Asia, and Africa.
3. The top 10 countries stand out significantly from the rest of the studied nations, particularly in terms of entrepreneurial human capital, the Science, Technology, and Innovation (STI) platform, social capital, and financing.
4. Over the past decade, the majority of the current top 10 countries have consistently maintained their positions, indicating a degree of stability. At the same time, notable exceptions like Norway and the Netherlands have demonstrated remarkable progress in the last five years, propelling them into the ranks of the top-performing countries today.
5. A closer look at the diversity of ecosystems reveals seven distinct configurations of systemic conditions, each yielding different outcomes in terms of entrepreneurial activity and development levels. These configurations are: advanced entrepreneurship ecosystems; advanced ecosystems with underutilized advantages; unbalanced emerging ecosystems; active unbalanced emerging ecosystems; ecosystems with moderate development and underutilized opportunities; lagging ecosystems with incipient development; and ecosystems with low systemic development.
The collective findings from the 2023 IDE, along with the detailed profiles of individual countries presented in this report, provide a solid foundation for examining the state of systemic conditions for dynamic entrepreneurship. This analysis is particularly important as dynamic entrepreneurship is identified as a pivotal force driving the transformative efforts toward attaining sustainable development goals.