Wikipedia

Draft:The Endeavor Multiplier Effect

Introduction

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The Endeavor Multiplier Effect™ refers to the economic and social impact generated by entrepreneurs supported by Endeavor, a global organization fostering high-impact entrepreneurship. Through mentorship, investment, and networking, these entrepreneurs scale their businesses, create jobs, and inspire future generations of entrepreneurs, leading to a compounding impact across local and global economies. [1]

History

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The term "Multiplier Effect" originates from economist John Maynard Keynes' theory outlined in The General Theory of Employment Interest, and Money (1936). Keynes described how an initial investment could trigger a chain reaction, amplifying overall economic growth. [2]

Building on this concept, Endeavor launched in 1997 to support high-impact entrepreneurs in emerging markets. By identifying founders with the potential to scale globally, Endeavor helps build entrepreneurial ecosystems around the world that self-sustain through mentorship, investment, and role modeling. The organization describes this network-driven dynamic as the Endeavor Multiplier Effect.

Key drivers of the Multiplier Effect include:[3]

  1. Mentorship for new entrepreneurs.
  2. Reinvestment of financial resources locally.
  3. Innovation inspired by role models.

Impact

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As of 2024, Endeavor has supported over 2,600 entrepreneurs across 45 countries, who collectively generate $67 billion in annual revenue and have created 4.1 million jobs. The organization credits the Multiplier Effect for amplifying this impact by inspiring further entrepreneurial activity and reinvestment in local economies.[4]

Case Studies

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MercadoLibre and Patagon.com (Argentina)

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In the late 1990s, Buenos Aires faced limited entrepreneurial activity due to political and economic instability. Wences Casares founded Patagon.com, one of Argentina’s first online brokerage firms, despite initial resistance from local investors. Patagon was later sold to Banco Santander for $750 million. Around the same time, Marcos Galperin and Hernán Kazah launched MercadoLibre, which became the first Latin American company to be listed on the NASDAQ in 2007. [5]

These early ventures catalyzed a network of startups, venture capital funds, and mentorship opportunities in Argentina. Today, Buenos Aires is recognized as a hub for tech entrepreneurship in Latin America[6], fueled by the Multiplier Effect of these early entrepreneurs. [7]

Peak Games (Turkey)

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In 2010, Turkey was not recognized as a leader in the tech sector.[8] That year, Sidar Sahin, Rina Onur Sirinoglu, Hakan Bas, and Safa Sofuoglu, founded Peak Games in Istanbul. In 2011, Sidar Sahin was selected as an Endeavor Entrepreneur out of Endeavor Turkey. In 2020, Peak Games was acquired for $1.8 billion by Zynga, representing the first billion-dollar-plus exit for a startup out of Turkey.

This acquisition demonstrated the global potential of Turkish startups and that big returns can come from Turkey. [9] Former Peak Games employees have gone on to create 65 different startups. One of Peak's founders, Rina Onur Siringolu, was then selected as an Endeavor Entrepreneur out of Turkey with her second venture Spyke Games, exemplifying the cascading impact of Peak Games on Turkey’s entrepreneurial ecosystem. [2]

Careem (UAE)

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In 2012, Magnus Olsson, Mudassir Sheikha, and Abdulla Elyas, founded Careem, the ride-hailing platform in the MENA region. In 2019, Careem became the Middle East's first unicorn after being acquired by Uber for $3.1 billion. [10]

Its founders, who were selected as Endeavor Entrepreneurs in 2018, have since contributed to the creation of over 120 startups by former employees. The founders themselves have invested in over 80 companies and mentored dozens of entrepreneurs across the region. This activity illustrates the Multiplier Effect’s role in accelerating entrepreneurship within the MENA region. [2]

See Also

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Categories

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Entrepreneurship

Non-profit organizations

Economics

Venture Capital

Sources

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  1. ^ "Fireside Chat: The Multiplier Effect". London Tech Week 2024. Retrieved 2024-10-02.
  2. ^ a b c Hale, Kori. "Endeavor's Impact Investing Multiplier Formula For Unicorn Success". Forbes. Retrieved 2024-11-15.
  3. ^ Stojan, Jon (2024-11-14). "From startups to ecosystems: how Endeavor's Multiplier Effect is transforming emerging markets". Digital Journal. Retrieved 2024-11-21.
  4. ^ "Endeavor Brings the Multiplier Effect to London With The Launch of Its New Global Hub". Yahoo Finance. 10-2-2024. Retrieved 11-15-2024. {{cite web}}: Check date values in: |access-date= and |date= (help)
  5. ^ "Mercado Libre Founders: It Takes Patience and Resilience". Stanford Graduate School of Business. 2024-04-30. Retrieved 2024-10-02.
  6. ^ "Top 8 Tech Hubs in Latin America for 2023". blog.emerald-technology.com. Retrieved 2024-11-21.
  7. ^ "Making Entrepreneurship Contagious". Knowledge at Wharton. Retrieved 2024-10-02.
  8. ^ "Countries ranked by IT revenue 2010". Statista. Retrieved 2024-11-15.
  9. ^ Lunden, Ingrid (2020-06-01). "Zynga acquires Turkey's Peak Games for $1.8B, after buying its card games studio for $100M in 2017". TechCrunch. Retrieved 2024-11-15.
  10. ^ Lomas, Natasha (2019-03-26). "Uber is paying $3.1BN to pick up Middle East rival Careem". TechCrunch. Retrieved 2024-11-21.
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