A new report, published by international accountancy firm EY and prepared by the firm and the G20 Young Entrepreneurs’ Alliance (G20 YEA), has revealed new insights about the state of digital entrepreneurship in the G20 nations.
'Disrupting the disruptors' has ranked the 20 countries according to how well each is doing at fostering digital start-ups and promoting a culture of entrepreneurship.
EY has used five "pillars" to assess the performance of each nation. These are access to finance, entrepreneurial culture, digital business environment, digital skills and entrepreneurial education, and digital knowledge base and ICT market. Each is weighted equally to provide an overall ranking for each country.
First of all, EY split the G20 nations into four quartiles, with the first showing the five nations leading in fostering digital entrepreneurs and the fourth showing those at the bottom of the table. In alphabetical order, the first quartile is made up of Canada, Germany, Japan, the UK and the US. Meanwhile, the bottom four consists of Argentina, Brazil, India, Mexico and Russia.
The US was the highest-ranked nation in three of the five pillars: entrepreneurial culture, digital skills and entrepreneurial education, and digital knowledge base and ICT market. In the remaining two, Canada was number one for access to finance, while the UK topped the table for digital business environment. The US came second and third in these categories, respectively.
When the scores were added up, the US came up on top overall with a score of 42.14. Behind the nation was Canada with 38.38, the UK with 37.60, Japan with 36.96 and Germany with 36.19.
The countries at the bottom of the rankings have a long way to come, with all five of the last quartile scoring less than 20. Argentina, in last place, scored just 13.6. However, a total of nine countries achieved an overall score of more than 30, showing what a fertile environment the G20 can be for digital entrepreneurs.
"Today, the trends of digitalisation are shifting the commercial landscape, creating both opportunities and challenges for entrepreneurs," said Xia Bing, president of G20 YEA China.
"A deeper understanding of how these trends affect entrepreneurs, especially young entrepreneurs — the “digital natives” — is critical to developing policy that can help empower them."