Hunter Centre for Entrepreneurship @ Strathclyde by 4bnW938

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									    hunter centre for entrepreneurship
              @ strathclyde


Global Entrepreneurship Monitor
         Scotland 2000




           Dr Jonathan Levie
            Dr Laura Steele
             GEM2000

          RESEARCH QUESTIONS
• Does the level of entrepreneurial
  activity vary between countries? By
  how much?
• Does the level of entrepreneurial
  activity affect economic growth?
• What makes a country entrepreneurial?
       GEM2000 Scotland

      RESEARCH QUESTIONS
• How does Scotland compare to the
  UK and other small modern nations
• Which factors account for Scotland's
  level of entrepreneurial activity
• What are the implications for public
  policy
           GEM2000 Methodology


• Standardised Cross-national Data: 23 nations
• Representative Sample: 2000 adults per nation
• Key Informant Sample: 36 experts per nation
      9 Entrepreneurial Framework Conditions:
      1.Financial Support 5.R&D Transfer
      2.Gov. Policy         6.Comm. Infrastructure
      3.Gov. Programmes     7.Barriers to Entry
      4.Education, Training 8.Physical Infrastructure
                9.Cultural & Social Norms
   Measuring Entrepreneurial Activity


1. % of adults actively starting a business
   (nascent entrepreneurship rate)
                        +
2. % of adults running a new business
   (owner/managers of businesses < 3½ yrs old)
                     =
       Total Entrepreneurial Activity
                   (TEA)
       GEM2000 Scotland
       Summary Highlights
1 TEA typical of small modern nations
2 Young adults more entrepreneurial
  - a generation shift?
3 Cultural bias against entrepreneurship
  relatively strong
4 Poor interpersonal networking retards
  entrepreneurship
                    0
                        2
                            4
                                6
                                    8
                                        10
                                             12
                                                  14
                                                       16
                                                            18
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                                                                                                                            1. How Scotland Compares




      K S
                                                                 Total Entrepreneurial Activity (% of working age adults)




         or
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       B a
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      2. A New Entrepreneurial Generation?
           Nascent entrepreneurship rate:
           % of younger and older adults
                  6

Young Scots       5
are as
                  4                               GEM21
entrepreneurial                                   Average
as elsewhere,                                     UK
                  3
older Scots are
not               2                               Scotland


                  1

                  0
                      18-34 years   35-54 years
     2. A New Entrepreneurial Generation?
       “...good opportunities for starting a business…”
                   % agreeing with this statement
Opportunity        40
perception         35
significantly      30
higher among       25
younger            20
adults in          15
Scotland           10
                    5
                    0
                         18-34 years         35-64 years
                                       Age
       2. A New Entrepreneurial Generation?

                     TEA rates by age and education

                       9
Younger, more          8
educated adults        7
have highest rates     6
of entrepreneurial     5                           18-34 years
activity               4                           35-64 years
                       3
                       2
                       1
                       0
                            No post       Post
                           secondary   secondary
                           education   education
     2. A New Entrepreneurial Generation?
       “You personally invested in someone else’s
        new business in past 2 years”
                            % agreeing by age and nation
Investment                  5
                                      Investment Activity and Age Group



activity among
older Scots is              4

significantly               3
                  percent




lower than                                                                18-34 years
                            2                                             35-64 years
expected
                            1

                            0
                                Scotland               UK
         3. Cultural Bias Against Entrepreneurship
          “wealthy entrepreneurs resented”: % saying yes

More resentment        GEM21 Average

of successful                Norway

entrepreneurs in            Denmark

Scotland than other             Israel
nations
                              Finland
Lack of appreciation of
                              Ireland
entrepreneurship as an
economic contributor?
                                   UK

                                 Wales

                             SCOTLAND


                                         0   10   20   30
        4. Poor Interpersonal Networking
          “Fear of failure would prevent you from
          starting a business”: % saying yes

Scotland has a     GEM21 Average


high fear of             Norw ay

failure rate.           Denmark


Connection to              Israel

Scottish                 Finland

networking                Ireland

issues?
                              UK

                          Wales

                      SCOTLAND


                                    0   10   20   30   40   50
           4. Poor Interpersonal Networking
         “You know personally someone who started a
         business in past 2 years: % saying yes
Scots less likely to GEM21 Average
know a new                 Norway

entrepreneur than         Denmark

citizens in other small       Israel
modern nations              Finland
- including nations         Ireland
with similar or lower
TEA rates
                                 UK

                               Wales

                           SCOTLAND


                                       0   20               40   60
                                            percent saying yes
         4. Poor Interpersonal Networking
        “You personally invested in someone else’s
         new business in past 2 years”: % saying yes

                       Norway

One consequence       Denmark

of poor networking      Israel
is low access to       Finland
start-up capital        Ireland


                            UK
                        Wales
                     SCOTLAND

                                  0   1   2   3   4    5
 4. Poor Networking hinders access to startup capital

       How it is        £million         How it should be
                       Startup,early               15
                       stage Venture                    1.2
                       Capital
            15
                 1.2
                       Startup Angel
                       network capital


82.8
                       startup capital
                       from other          166
                       personal
                       investors
 Maintaining the Momentum
• Business Birth Rate Strategy and changes
  in education may have caused a
  generation shift in entrepreneurial activity
• Widening and deepening of successful
  BBRS initiatives now required to maintain
  momentum - “making connections”
• Appreciating the link between
  entrepreneurship and economic growth
• Improving social interaction
• Education is key

								
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