High Expectation Entrepreneurship - A True Indicator of Startup Ecosystem Health

CNN Money has an interesting write-up on -- what makes entrepreneurial ecosystem click? And what is a true indicator of health of new business environment?

One such indicator is World Bank’s Doing Business report, which measures the entrepreneurial climate of 175 nations in two ways: starting and operating a business. If a country enables easy start, operations & exit environment, it is rated as a business friendly country.

The most interesting part is that this index does not directly correlate with health of new venture climate in the country. Authors propose proportion of "High Expectation Entrepreneurship" as a better indicator of startup climate health. High expectation entrepreneurs are ones who start ventures not because they do not have any choice, but they start new business because they believe entrepreneurship offers better opportunity than their high paying jobs.

In India, historically, new business was a result of lack of options. Lately, I find a new breed of entrepreneurs, who are willing to give up their high potential jobs to pursue a more rewarding enterprise -- start of a new business. A sign that in future India will find a better place, compared to it’s present 46, on high potential entrepreneurship scale.