ENTREPRENEURSHIP IN IRELAND 2017€¦ · Economic Forum, World Bank, and the Organisation for Economic Co-operation and Development. The sponsorship of Enterprise Ireland, with the

Global Entrepreneurship Monitor (GEM)

ENTREPRENEURSHIP IN IRELAND 2017

A SURVEY OF ENTREPRENEURSHIP IN IRELAND

GLOBAL ENTREPRENEURSHIP MONITOR (GEM)

THE 2017 SURVEY OF ENTREPRENEURSHIP IN IRELAND

PAULA FITZSIMONSFitzsimons Consulting

&COLM O’GORMAN

Dublin City University

JUNE 2018

GEM research in Ireland and this report are sponsored by Enterprise Ireland,

with the support of the Department of Business, Enterprise and Innovation

2 GLOBAL ENTREPRENEURSHIP MONITOR

The Global Entrepreneurship Monitor (GEM) is the world’s foremost study of entrepreneurship.

GEM is unique.• GEM collects primary data on entrepreneurship.• GEM focuses on the individual entrepreneur.• GEM allows for international comparisons as data is collected in the same format across the world.

GEM is a trusted resource of data, analysis and expert opinion on entrepreneurship for key organisations such as the United Nations, World Economic Forum, World Bank, and the Organisation for Economic Co-operation and Development.

The sponsorship of Enterprise Ireland, with the support of the Department of Business, Enterprise and Innovation funded the inclusion of Ireland in the 2017 GEM project.

The Irish GEM team would like to thank the two thousand members of the public who participated in the GEM survey and the entrepreneurs and expert informants that were consulted as part of this research project.

The findings of this independent report do not necessarily represent the views of Enterprise Ireland or the Department of Business, Enterprise and Innovation. Although data used in this report is collected by the Global Entrepreneurship Monitor consortium, its analysis and interpretation is the sole responsibility of the authors. The authors, for their part, have attempted to ensure accuracy and completeness of the information contained in this publication. No responsibility can be accepted, however, for any errors and inaccuracies that occur.

3SURVEY OF ENTREPRENEURSHIP IN IRELAND 2017

AUTHORS

PAULA FITZSIMONS is the founder of Fitzsimons Consulting, which specialises in entrepreneurship and growth.

Paula has been the national coordinator for the Global Entrepreneurship Monitor (GEM) for Ireland since 2000. She previously served for several years on the governing body of GERA, the Global Entrepreneurship Research Association, as President of the national teams.

Fitzsimons Consulting has designed and implemented several peer support initiatives to address gaps in enterprise development. The award winning Going for Growth, which is celebrating its 10th birthday this year is focused on supporting ambitious female entrepreneurs to realise their growth ambitions. It is supported by Enterprise Ireland and KPMG. ACORNS, an initiative to support early stage female entrepreneurs in rural Ireland, was designed and is implemented by Fitzsimons Consulting on behalf of the Department of Agriculture, Food and the Marine. The most recent of these initiatives, Back for Business, is focused on returning emigrants who wish to set up a business on their return to Ireland. It is supported by the Department of Foreign Affairs and Trade.

CONTACT DETAILS: Tel: +353 1 845 0770 • E-mail: [email protected]

COLM O’GORMAN is Professor of Entrepreneurship at Dublin City University Business School.

His research focuses on entrepreneurship, innovation, and growth in new firms and in small and medium sized enterprises (SMEs). Specifically he has studied the growth strategies of SMEs, the nature of managerial work in high growth SMEs, mission statements in SMEs, and internationalisation processes in International New Ventures, and in SMEs.

His research has explored the emergence of high-tech firms in the context of cluster dynamics, including a study of the factors that led to the rapid emergence of the software industry in Ireland during the 1990s. He has examined innovation processes in large firms.

Colm has published in international peer-reviewed journals such as Entrepreneurship and Regional Development, European Planning Studies, Journal of Small Business Management, International Marketing Review, Organisational Dynamics, R&D Management, Small Business Economics, and Venture Capital. He has completed several European Union funded research projects. He has co-authored eight teaching cases studies on entrepreneurship published by the European Case Clearing House, including several award winning cases.

CONTACT DETAILS: Tel: +353 1 700 6941 • E-mail: [email protected]

fitzsimons consultingS P E C I A L I S I N G I N E N T R E P R E N E U R S H I P A N D G R O W T H


FOREWORD

Entrepreneurs are one of the most important components of the entire business ecosystem in Ireland. They create new businesses, new jobs, new products and new services. In the current international climate, it is imperative that new businesses and new business models continue to grow in numbers and quality in Ireland. That is why we have placed a central focus on entrepreneurship policy and SME development in the Government’s Action Plan for Jobs and why the Government agreed the first National Entrepreneurship Policy Statement in 2014.

This annual Global Entrepreneurship Monitor report is a valuable resource for tracking our comparative performance and policy analysis for my Department of Business, Enterprise and Innovation.

We can see from the results that Ireland is a country where entrepreneurs are viewed with great admiration, with four-in-five Irish people holding entrepreneurs in high regard.

Ireland is also 4th in Europe in terms of high- and medium-tech entrepreneurship and in terms of the growth ambitions and the international focus of entrepreneurs.

However, we need to stretch ourselves further to ensure we address key areas of untapped potential. Female entrepreneurship levels are increasing and I believe there is more that we can achieve in this area. As one example of what can be achieved by putting a spotlight on specific areas of potential, the share of female-led successful applications for Enterprise Ireland’s High-Potential Start-up Programme has increased from 8 percent in 2012 to 28 percent in 2017. I am dedicated to closing the gap further and it is my ambition to see increasing numbers of women take up the reigns of business ownership.

As Minister, I value the importance of monitoring and evaluating the framework conditions for businesses in Ireland. Therefore, I agreed in early 2018 with the Organisation for Economic Co-operation and Development (OECD) to undertake a review of SME and entrepreneurship performance, potential and policies in Ireland. The

OECD review will form an important input to the ongoing development of our policies and supports for entrepreneurship and SMEs in Ireland into the future.

I will continue to work with my Ministerial colleagues across Government to ensure that we create and sustain the most competitive and attractive environment to start, grow and scale businesses. One of our greatest assets is a national culture that is supportive of entrepreneurship, innovation and creativity in all walks of economic and social life and I will continue to work to ensure that we sustain a cohesive whole-of-government approach to supporting entrepreneurs and enterprise. After all, it is entrepreneurs, risk takers and enterprises that create the quality jobs and deliver economic growth in every part of the country and provide the resources needed to underpin our wider public policy objectives. We want them to succeed. It is in all our interests.

Heather Humphreys, T.D.,Minister for Business, Enterprise and Innovation


CONTENTS

RATES OF ENTREPRENEURSHIP, INTRAPRENEURSHIP, AND EXITS 09

ASPIRATIONS, ATTITUDES AND PERCEPTIONS 17

IMPACT OF ENTREPRENEURS – SECTOR, JOBS, INTERNATIONALISATION, INNOVATION 21

WHO ARE IRELAND’S ENTREPRENEURS? (PERSONAL CHARACTERISTICS AND MOTIVES) 27

GENDER AND ENTREPRENEURSHIP 33

OWNER-MANAGERS OF ESTABLISHED BUSINESSES 39

INVESTORS AND BUSINESS ANGELS 45

THE ECO-SYSTEM FOR ENTREPRENEURSHIP 49

COMPARATIVE INTERNATIONAL DATA 55

GEM GLOBAL RESULTS 73

METHODOLOGY AND DEFINITIONS 79

RATES OF ENTREPRENEURSHIP, INTRAPRENEURSHIP, AND EXITS

GLOBAL ENTREPRENEURSHIP MONITOR : SURVEY OF ENTREPRENEURSHIP IN IRELAND 2017

The rate of early stage entrepreneurial activity in Ireland in 2017 is similar to the rate reported during the Celtic Tiger period.

NEW BUSINESS OWNERSIn Ireland, approximately 26,800 people reported they were involved in starting a new business in 2017. In 2017, 3.3% of the Irish population reported they were involved in starting a new business in the recent past (since 2014). This rate is similar to many other European countries, but is lower that the US, where the rate is 4.6% of the population. If the rate in Ireland was similar to that in the US, an extra 10,000 people would have been involved in starting a new business in 2017.

INTRAPRENEURS1 in 12 employees report they have been involved in the development of new activities for their employer, for example developing or launching new goods or services, setting up a business unit, a new establishment or subsidiary.

Ireland is one of five countries that scores above the European average (20 countries) for both rates of entrepreneurship (new business owners) and rates of intrapreneurship (employees engaged in entrepreneurship for their employer in the past 3 years). The others are Estonia, the Netherlands, Switzerland, and the UK.

However, in the US both the rate of entrepreneurship (new business owners) and rate of intrapreneurship are higher than they are in Ireland.

EARLY STAGE ENTREPRENEURS Ireland had relatively high rates of entrepreneurship in 2017 as evident by the TEA index.

The TEA Index consists of two groups of entrepreneurs: nascent entrepreneurs and new business owners.

Nascent entrepreneurs are people who are at a very early stage, for example, planning the start-up, organising the start-up team, saving money for a start-up, as well as those that have progressed further and recently started the new business, but have not paid salaries for more than 3 months.

New business owners are people who have started a new business since January 2014, and have paid salaries for at least three months. These entrepreneurs at least part own and manage the new business.

In Ireland, as many as 9 in every 100 people (adults, aged 18-64) report that they are either actively engaged in the very early stages of starting a business (6 in every 100) or have recently started a business (3 in every 100).

Ireland ranks 6th highest of 20 European countries. Ireland ranks higher than some developed European economies, such as France, Germany, and Italy. In these countries just 4 or 5 in every 100 report that they are engaged in early stage entrepreneurial activity.

However, Ireland ranks lower than the US, where nearly 14 in every 100 people report they are engaged in early stage entrepreneurial activity.


Ireland ranks 6th highest in Europe (of 20) on the TEA Index

26,800 people reported they were involved in starting a new business in 2017

Ireland ranks 8th highest in Europe for intrapreneurs

Both the rates of entrepreneurship and intrapreneurship are higher in the US than in Ireland.


Lack of profitability (23%) and problems getting finance (14%) were the primary reason for exit for over a third of exits (37%).

Brexit was a factor influencing the decision to close the business for 10% of owner-managers.

Of those in Ireland that recently exited a business that was discontinued, 90% report that they are in employment (fulltime, part-time or self-employment). Half report that they aspire to start a business or are currently actively engaged in starting a business (nascent entrepreneur).

EXITSAs well as high levels of entrepreneurship in Ireland, there are many owner-managers that exit a business each year. These businesses may continue, for example when a business is sold or when it is passed on to a family member, or they may discontinue.

In Ireland, 1.9% of people report they have recently exited a business that was discontinued.

In 2017, family or personal reasons is the most cited single reason for exiting in Ireland (29% of all exits), when the business was discontinued. Family reasons, personal reasons and finding another job or business opportunity account for nearly half of all exits (47%).

Family or personal reasons is the most cited single reason for exiting in Ireland

Brexit was a factor influencing the decision to close the business in 2017 for 10% of owner-managers

Of those that recently exited a business, 90% are in employment (fulltime, part-time or self-employment)


26,800NEW BUSINESS

OWNERS IN 2017

50% Dublin Mid-East South-East

34% West

Mid-WestSouth-West

16% Border

Midlands

SECTORS

INTERNATIONAL ORIENTATIONMOTIVES

START-UP TEAMS

13% IN MEDIUM OR HI-TECH SECTOR

JOBS EXPECTATIONS

13% EXPECT TO HAVE 10+ JOBS IN 5 YEARS

JOBS IMPACT

68% IS AN EMPLOYER NOW OR WILL BE WITHIN 5 YEARS OF STARTING

1 IN 4 BORN OUTSIDE IRELAND

REGION OF RESIDENCE

PLACE OF BIRTH AND CURRENT RESIDENCE

NECESSITY

SOLO

OPPORTUNITY

TEAM

27%

64%

73%

36%

24%18-29 YRS

25%40-49 YRS

30%30-39 YRS

21%50-64 YRS

AGE

WHO ARE THEY?EDUCATION67% HAVE POST SECONDARY EDUCATION

RESOURCES (HOUSEHOLD INCOME)

GENDER

14% 42% 44%LOWEST THIRD MIDDLE THIRD HIGHEST THIRD

65% 35%

72% 25%HAVE INTERNATIONAL

CUSTOMERS(SOME REVENUE

FROM OVERSEAS)

ARE BORN GLOBAL (>25% REVENUES FROM OVERSEAS)

24% BUSINESS SERVICES42%

CONSUMER SERVICES

34% EXTRACTIVE AND

TRANSFORMATIVE


ENTREPRENEURSHIP ACTIVITY

Every month in 2017 about 2,200 people started a new business in Ireland.

In 2017, Ireland ranks 9th (of 20 countries) in Europe for the number of people who have recently started a new business.

In 2017, many Irish people were trying to start a new business. In 2017, about 6 in every 100 people were nascent entrepreneurs in that they took some steps towards starting a business (though most remain in employment).

Ireland ranks 7th highest in Europe for nascent entrepreneurs.

In many developed European economies, such as Italy, Spain, France and Germany, there are fewer nascent entrepreneurs (about 3 in 100). In contrast, the US (9 in 100) and Canada (11 in 100) have much higher rates.

New business owners

Total early stage entrepreneurs (TEA)

3.3%IRELAND

8.9%IRELAND

About 3 in every 100 people in Ireland started a new business between January 2014 and July 2017. This is fewer than in Canada (8 in 100), the US (5 in 100), and the UK (4 in 100), though higher than some European countries such as Sweden and Germany (2 in 100).

TABLE A IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

5.1%

1.6%

4.6%

12.8%

4.7%

13.6%

5.9%

8.1%

12.2%

18.8%

ESTONIA

NETHERLANDS

LATVIA

UNITED KINGDOM

SWITZERLAND

CYPRUS

SLOVAKIA

SPAIN

SLOVENIA

CROATIA

GREECE

LUXEMBOURG

POLAND

SWEDEN

GERMANY

BULGARIA

ITALY

BOSNIA AND HERZEGOVINA

6.2%ESTONIA

LATVIA

SLOVAKIA

NETHERLANDS

LUXEMBOURG

CROATIA

POLAND

SWITZERLAND

UNITED KINGDOM

CYPRUS

SWEDEN

SLOVENIA

SPAIN

GERMANY

GREECE

ITALY


FRANCE

19.4%

IRELAND

IRELAND

1.1% 3.7%

Nascent entrepreneurs

5.8%IRELAND

8.4%

3.2%

9.4%

6.4%

11.3%

ESTONIA

LATVIA

SLOVAKIA

POLAND

LUXEMBOURG

CROATIA

SWEDEN

NETHERLANDS

SWITZERLAND

UNITED KINGDOM

SLOVENIA

CYPRUS

GERMANY

FRANCE

SPAIN

ITALY


GREECE

13.4%

IRELAND

1.8%BULGARIA FRANCE BULGARIA

INTRAPRENEURSHIP ACTIVITY

Intrapreneurs in past 3 years (% of adults)

Intrapreneurs in past 3 years (% of employed adults)

About 8 in every 100 employees in Ireland have engaged in the development of new activities in recent years.

Ireland’s rate (8 in 100) is lower than the UK (11 in 100), the US (11 in 100) and Canada (12 in 100) and similar to Germany and Sweden (8 in 100).

Estonia, the UK and the Netherlands have higher rates of both intrapreneurs and new business owners

Ireland ranks 8th in Europe for intrapreneurs.

Many employees engage in the development of new activities for their employer.

Intrapreneurs are employees involved in the development of new activities for their employer within the past 3 years (e.g. developing or launching new goods or services).

TABLE B IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

5.5%IRELAND

8.1%IRELAND

8.6%

2.8%

7.6%

11.8%

4.2%

11.0%

7.8%

8.2%

11.4%

11.9%

ESTONIA

LUXEMBOURG

UNITED KINGDOM

NETHERLANDS

SWEDEN

SLOVENIA

GERMANY

CROATIA

SWITZERLAND

LATVIA

FRANCE

POLAND

SLOVAKIA

ITALY

CYPRUS

SPAIN

GREECE


9.1%

0.5%

IRELAND

ESTONIA

LUXEMBOURG

UNITED KINGDOM

SLOVENIA

NETHERLANDS

CROATIA

GERMANY

SWEDEN

SWITZERLAND

LATVIA

FRANCE

POLAND

ITALY

SLOVAKIA

CYPRUS

SPAIN

GREECE


12.8%

IRELAND

BULGARIA0.7%

BULGARIA


BUSINESS EXITS: RATES AND REASONS

23% cited lack of profitability as the primary reason for closing their business.

14% cited problems in getting finance as the primary reason for closing their business.

18% closed because they found a job or another business opportunity.

Family or personal reasons is the top cited single reason for exiting in Ireland- accounting for 29% of all exits.

Entrepreneurs exited in last 12 months

and business discontinued

Reasons (discontinued businesses) - Top 4 in Ireland

Family or personal reasons

Business was not profitable

Found another job or business opportunity

Problems getting finance

Exits refer to owner manager that have exited a business (new or established) in the past twelve months.

TABLE C IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

1.9%IRELAND

3.6%

0.8%

2.0%

2.8%

3.3%

GREECE

LATVIA

ESTONIA

SLOVAKIA

CYPRUS

LUXEMBOURG

NETHERLANDS

POLAND

SWEDEN

CROATIA

UNITED KINGDOM

FRANCE

SLOVENIA

SPAIN

ITALY

BULGARIA

GERMANY


4.7%

0.4%

IRELAND

SWITZERLAND

29%IRELAND

20%

25%

21%

17%

14%


IRELAND

30%

IRELAND

SWITZERLAND

GERMANY

CROATIA

UNITED KINGDOM

CYPRUS

SWEDEN

ESTONIA

SPAIN

POLAND

BULGARIA

FRANCE

SLOVAKIA

NETHERLANDS

GREECE

ITALY

LUXEMBOURG

9%SLOVENIA

23%IRELAND

38%

27%

8%

32%

18%

BULGARIA

SPAIN

GREECE

CYPRUS

SLOVAKIA

CROATIA

GERMANY

LATVIA

POLAND

ESTONIA

LUXEMBOURG


FRANCE

SLOVENIA

ITALY

UNITED KINGDOM

NETHERLANDS

SWEDEN

59%

10%

IRELAND

SWITZERLAND

18%IRELAND

6%

8%

30%

14%

14%

UNITED KINGDOM

SLOVENIA

SWEDEN

ESTONIA

NETHERLANDS

LUXEMBOURG

POLAND

GERMANY

CYPRUS

SWITZERLAND

SLOVAKIA

LATVIA

FRANCE

CROATIA

ITALY

BULGARIA

SPAIN


22%

0%

IRELAND

GREECE

14%IRELAND

14%

3%

5%

3%

12%


BULGARIA

ITALY

FRANCE

NETHERLANDS

CROATIA

LUXEMBOURG

SLOVAKIA

ESTONIA

SWITZERLAND

SLOVENIA

LATVIA

UNITED KINGDOM

POLAND

CYPRUS

SPAIN

GREECE

GERMANY

24%

4%SWEDEN

LATVIA

IRELAND


ASPIRATIONS, ATTITUDES AND PERCEPTIONS



In Ireland, a little more than half (53%) of people perceive entrepreneurship as a good career choice. This is lower than most other European countries (an average rate of 59%), with Ireland ranking 16th of 20 countries. It is also lower than Canada and the US, where nearly two-thirds (66% and 63%) see entrepreneurship as a good career choice.

SELF-PERCEPTIONS OF OPPORTUNITIES AND SKILLSIn Ireland, less than half of people (45%) see entrepreneurial opportunities in their local area. The norm across Europe is 41%, though some countries have much higher rates, for example Sweden (79%), Poland (69%) and the Netherlands (64%).

Of those in Ireland that perceive opportunities, just half believe they have the skills and knowledge required to start a business.

In Ireland, less than half of people (42%) believe they have the skills to start a business (European norm is 43%). In the US, Canada and Australia more people perceive opportunities and more people are confident in their entrepreneurial capabilities (compared to Ireland).

Fear of failure would prevent 4 in every 10 Irish people (39%) from starting a business. This is similar to the US (34%) and many other European countries (European average is 43%).

ASPIRATIONS TO START A BUSINESSIn Ireland, 1 in every 7 people aspires to start a business in the next 3 years. For those not currently an entrepreneur or owner-manager, 1 in every 8 aspires to start a business. Aspirations are much higher among younger people, with nearly 17% of those aged 18-24 aspiring to start a business in the near future.

Aspirations to start a business are much higher than recent start-up activity. In Ireland more than four times more people aspire to start a business compared to the number that have recently started. In all countries many more people aspire to start a business in the future, compared to the number that have recently started.

ATTITUDES TO ENTREPRENEURSHIPPopular culture in Ireland is very supportive of entrepreneurship - the highest in Europe in terms of popular regard for successful entrepreneurs. Regard for successful entrepreneurs is higher in Ireland than it is in the US - 82% compared to 75%.

As evidence of a supportive culture, many Irish people (7 in every 100) report that there are many stories of successful entrepreneurs in the media. 3 in every 10 Irish people have a role model in that they know a recent entrepreneur.

Nearly 1 in 5 young people (18-24 years) aspire to start a business

Successful entrepreneurs are held in high regard by most Irish people

The perception that entrepreneurship is a good career choice is low in Ireland

In the US and Canada more people perceive opportunities and more people are confident in their entrepreneurial capabilities (compared to Ireland)

“Fear of failure” is a barrier for as many as 4 in every 10 Irish people


A “CULTURE” OF ENTREPRENEURSHIP

Across Europe many people aspire to start a business. In Ireland, about 1 in every 7 adults aspires to start a business in next 3 years. This is four times more than the number that have recently started a business.

The “culture” in Ireland is very supportive of entrepreneurship – the highest in Europe in terms of popular regard for successful entrepreneurs.

Many Irish people are aware of stories of successful entrepreneurs in the media. Ireland has the highest rate in Europe.

The perception that entrepreneurship is a good career choice is lower in Ireland than it is in the US (63%), and is much lower than the Netherlands, the highest ranked in Europe (81%).

In the years before the economic crisis, more Irish people perceived entrepreneurship as a good career choice. For 2003 to 2007, the average was 67%, compared to an average of 51% for 2012 to 2016.

Positive regard for successful entrepreneurs is more common in Ireland than it is in the US.

Just over half of Irish people perceive entrepreneurship as a good career choice.

TABLE D IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

14.8%IRELAND

Aspiring entrepreneurs

30.6%

7.5%

19.0%

15.4%

23.1%

CROATIA

ESTONIA

LATVIA

FRANCE

CYPRUS

SLOVENIA

LUXEMBOURG

SLOVAKIA

SWITZERLAND

ITALY

POLAND

NETHERLANDS

SWEDEN

UNITED KINGDOM

GERMANY

GREECE

SPAIN


22.8%

5.6%

IRELAND

BULGARIA

Successful entrepreneurs

are held in high regard

There are many stories of successful

entrepreneurs in the media

Entrepreneurship is a good

career choice

82%IRELAND

86%

52%

75%

69%

74%

GERMANY

UNITED KINGDOM

FRANCE

SLOVENIA

ITALY

SWITZERLAND

SWEDEN

LUXEMBOURG

BULGARIA

POLAND

NETHERLANDS

GREECE


ESTONIA

CYPRUS

SLOVAKIA

LATVIA

SPAIN

82%

48%

IRELAND

CROATIA

53%IRELAND

65%

24%

63%

54%

66%

NETHERLANDS

POLAND

CYPRUS

ITALY

GREECE


CROATIA

FRANCE

LATVIA

UNITED KINGDOM

SLOVENIA

BULGARIA

ESTONIA

SPAIN

SWEDEN

SWITZERLAND

GERMANY

SLOVAKIA

81%

43%

IRELAND

LUXEMBOURG

73%IRELAND

55%

56%

74%

74%

77%

SLOVENIA

SWEDEN

NETHERLANDS

ESTONIA

SLOVAKIA

SWITZERLAND

UNITED KINGDOM

LATVIA

ITALY

SPAIN

CYPRUS

POLAND

GERMANY

LUXEMBOURG

CROATIA

BULGARIA

FRANCE

GREECE

73%

26%

IRELAND


PERCEPTIONS OF OPPORTUNITIES AND CAPABILITIES IN THE GENERAL POPULATION

Less than half of people in Ireland believe they have the skills and knowledge to start a business. This is the norm across Europe.

Fear of failure would prevent nearly 4 in every 10 Irish people from starting a business. This is similar to many European countries.

16% of people in Ireland that perceive opportunities for new businesses in their local and who are not currently active as an entrepreneur, aspire to start a business in the next 3 years.

Less than 1 in every 2 people in Ireland see entrepreneurial opportunities in their local area. During the economic and financial crisis, the perception of opportunity was much less common, just 1 in every 4.

In the US, Canada and Australia many more people perceive opportunities and many more people are confident in their entrepreneurial skills and knowledge, compared to Ireland.

Three in ten Irish adults have an entrepreneurial “role model”, in that they know a recent entrepreneur.

Opportunities in local area

Skills & knowledge to start-up

Role models: know a recent entrepreneur

Fear of failure prevent start-up

Of the people in Ireland that perceive opportunities for new businesses in their local area, as many as 4 in every 10 report that a “fear of failure” would prevent then starting a business and just 1 in 2 believe they have the skills to start a business.

TABLE E IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

45%IRELAND

58%

7%

64%

51%

60%

SWEDEN

POLAND

NETHERLANDS

ESTONIA

LUXEMBOURG

CYPRUS

SWITZERLAND

UNITED KINGDOM

GERMANY

LATVIA

SLOVENIA

FRANCE

CROATIA

SPAIN

ITALY

SLOVAKIA

BULGARIA

GREECE

79%

13%

IRELAND


42%IRELAND

44%

11%

54%

49%

56%

SLOVENIA

POLAND

CROATIA

ESTONIA

LATVIA

SLOVAKIA

UNITED KINGDOM

CYPRUS

SPAIN

NETHERLANDS

GREECE

SWITZERLAND

LUXEMBOURG

BULGARIA

GERMANY

FRANCE


SWEDEN

53%

30%

IRELAND

ITALY

30%IRELAND

60%

19%

33%

35%

39%

ESTONIA

POLAND

SLOVENIA

CYPRUS

NETHERLANDS

SWEDEN

BULGARIA

LUXEMBOURG

LATVIA

SLOVAKIA

SWITZERLAND

FRANCE

UNITED KINGDOM

SPAIN

CROATIA


GERMANY

GREECE

46%

20%

IRELAND

ITALY

39%IRELAND

55%

44%

34%

42%

47%

NETHERLANDS


SLOVENIA

SWITZERLAND

ESTONIA

CROATIA

UNITED KINGDOM

FRANCE

GERMANY

SWEDEN

SPAIN

POLAND

BULGARIA

SLOVAKIA

LATVIA

LUXEMBOURG

ITALY

CYPRUS

33%

70%

IRELAND

GREECE


IMPACT OF ENTREPRENEURS – SECTOR, JOBS, INTERNATIONALISATION, INNOVATION



INTERNATIONAL ORIENTATIONMost nascent entrepreneurs and new business owners in Ireland have an international orientation in that they expect some revenues from international customers. Just one in four Irish entrepreneurs (28%) expects to have no revenue from customers from outside of Ireland (average in Europe is 40%).

“Born Globals” expect to be very international - more than 25% of revenues from overseas customers. The number in Ireland (27%) is higher than the European average (23%).

INNOVATIONIn Ireland, a significant minority of entrepreneurs are innovative on one of three innovation measures: newness of product, extent of competition, and newness of technology.

However, the ideas of most nascent entrepreneurs and new business owners tend not be very innovative - that is they typically provide a product/service that is familiar to customers, have competitors, and use established technology.

SECTOR FOCUSThe sector focus of the ideas and activities of nascent entrepreneurs and new business owners differs across countries. In recent years, Irish entrepreneurs have been particularly focussed on consumer services sectors, such as retail, motor, lodgings, restaurants, personal services, health, education, recreation.

One in four Irish entrepreneurs is focussed on the business services sector with includes finance, insurance, real estate, and all business services. About one in five Irish entrepreneurs is in “transformative” sectors, activities such as construction, manufacturing, transport, wholesale, utilities.

Using OECD sector classification, the ideas or new businesses of nearly 1 in every 9 entrepreneurs in Ireland are in “medium” or “high” technology sectors. Ireland ranked 4th of 20 European countries in 2017.

JOBS IMPACTMany nascent entrepreneurs and new business owners (66%) in Ireland are already employing someone, or expect to become an employer within the next five years.

Many Irish entrepreneurs have high growth expectations. 2 in every 10 entrepreneurs expect to employ 10 or more, and to increase the number of jobs by 50%, within 5 years. 1 in every 10 entrepreneurs in Ireland have very high growth expectations, that is, they expect to employ 20 or more within 5 years. High growth (in jobs) expectations are more common in Ireland than in most other European countries.

Ireland ranks 4th highest in Europe for “tech” entrepreneurship

Ireland ranks 4th in Europe for entrepreneurs with “high jobs growth” expectations

“Born-Globals”: 1 in 4 Irish entrepreneurs have a very strong international orientation

1 in 6 Irish entrepreneurs are innovative – in that the product/service is new to all their customers

IMPACT: SECTORS (EARLY STAGE ENTREPRENEURS)

Transformative sectors

Business service sectors

Consumer service sectors

High or medium technology sectors only

Extractive sectors

About 1 in every 5 Irish entrepreneurs is focussed on “transformative” sectors, activities such as construction, manufacturing, transport, wholesale, utilities.

The rate of “technology” entrepreneurship in Ireland is higher than many other European countries.

1 in every 4 Irish entrepreneurs is focused on the business services sector, with includes finance, insurance, real estate, and all business services.

The sector focus of entrepreneurs’ ideas and activities differs across countries.

Medium and high technology sectors (OECD classifications) are the focus of the ideas or new businesses of nearly 1 in every 9 Irish entrepreneurs.

Consumer services sectors such as retail, motor, lodgings, restaurants, personal services, health, education, recreation account for nearly half of all Irish nascent entrepreneurs and new business owners.

TABLE F IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

5%IRELAND

1%

7%

5%

3%

4%

CROATIA


ITALY

BULGARIA

LATVIA

SWEDEN

FRANCE

ESTONIA

SLOVENIA

NETHERLANDS

GREECE

SWITZERLAND

SPAIN

GERMANY

SLOVAKIA

POLAND

LUXEMBOURG

UNITED KINGDOM

21%

0%

IRELAND

CYPRUS

11.4%IRELAND

14.3%

8.2%

9.6%

13.1%

9.9%

SLOVENIA

NETHERLANDS

FRANCE

SWEDEN

LUXEMBOURG

UNITED KINGDOM

SPAIN

ITALY

GERMANY

SLOVAKIA

ESTONIA

LATVIA

CROATIA

POLAND


GREECE

BULGARIA

SWITZERLAND

16.1%

2.1%CYPRUS

22%IRELAND

11%

17%

18%

24%

12%

LATVIA

BULGARIA

POLAND

ESTONIA


CROATIA

UNITED KINGDOM

SLOVENIA

SLOVAKIA

GREECE

ITALY

LUXEMBOURG

FRANCE

SPAIN

NETHERLANDS

SWITZERLAND

SWEDEN

CYPRUS

34%

14%

IRELAND

GERMANY

46%IRELAND

55%

41%

41%

39%

42%

CYPRUS

GREECE

GERMANY

SPAIN

SWITZERLAND

POLAND

SLOVAKIA

BULGARIA

FRANCE

NETHERLANDS

LUXEMBOURG


ESTONIA

SWEDEN

LATVIA

UNITED KINGDOM

SLOVENIA

CROATIA

66%

30%ITALY

27%IRELAND

33%

35%

36%

34%

41%

UNITED KINGDOM

SLOVENIA

SWEDEN

NETHERLANDS

LUXEMBOURG

ITALY

GERMANY

SLOVAKIA

FRANCE

SWITZERLAND

ESTONIA

SPAIN

CROATIA

LATVIA

CYPRUS

GREECE

POLAND


42%

11%

IRELAND

BULGARIA

IRELAND

IRELAND



IMPACT: JOBS AND JOBS GROWTH ASPIRATIONS (EARLY STAGE ENTREPRENEURS)

Early stage entrepreneurs with any jobs now or any jobs expected in five years

5 year jobs growth expectations (10 or more jobs within 5 years and jobs

growth of at least 50%)

5 year jobs growth expectations

(20+ jobs)

Many Irish entrepreneurs have high growth expectations.

High growth expectations are more common in Ireland than in most other European countries.

1 in every 5 Irish entrepreneurs expects to have 10 or more jobs and to increase jobs by 50% within 5 years.

Ireland ranks 4th in Europe for entrepreneurs with “high jobs growth” expectations

1 in every 10 Irish entrepreneurs have very high growth expectations, in that they expect to have 20 or more jobs within next 5 years.

66% of Irish nascent entrepreneurs and new business owners are already employers, or expect to become employers within the next five years. This is lower than in previous years.

TABLE G IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

66%IRELAND

75%

60%

81%

77%

64%

CYPRUS

GREECE

FRANCE

LATVIA

SWITZERLAND

CROATIA

ESTONIA

ITALY

POLAND

GERMANY

SLOVENIA

SLOVAKIA

UNITED KINGDOM

BULGARIA

NETHERLANDS

SPAIN

LUXEMBOURG

SWEDEN

87%

48%

IRELAND


21%IRELAND

8%

24%

29%

21%

16%

FRANCE

LATVIA

ESTONIA

NETHERLANDS

BULGARIA

SPAIN

GREECE

SWEDEN

CYPRUS

27%

2%

IRELAND


12%IRELAND

5%

18%

18%

12%

14%

GERMANY

FRANCE

UNITED KINGDOM

LATVIA

SWITZERLAND

ESTONIA

CROATIA

SLOVAKIA

BULGARIA

SLOVENIA

LUXEMBOURG

NETHERLANDS

POLAND

ITALY

SPAIN

GREECE

SWEDEN

CYPRUS

13%

0%

IRELAND


SWITZERLAND

GERMANY

CROATIA

SLOVAKIA

UNITED KINGDOM

SLOVENIA

LUXEMBOURG

ITALY

POLAND


IMPACT: INTERNATIONAL ORIENTATION (EARLY STAGE ENTREPRENEURS)

An international orientation is more common in Ireland (7 in 10) than many other European countries. Across Europe, the average is 6 in every 10 entrepreneurs.

3 in every 10 Irish entrepreneurs are focussed exclusively on the domestic market.

“Born Globals”, entrepreneurs that expect to have more than 25% of revenues from overseas customers, account for 1 in every 4 Irish entrepreneurs. This is similar to the norm in Europe.

7 in every 10 nascent entrepreneurs and new business owners in Ireland have an international orientation in that expect some revenues from international customers.

No revenues from customers outside

country

1-24% of revenue from customers outside country



TABLE H IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

28%IRELAND

42%

47%

14%

34%

23%

SPAIN

POLAND

BULGARIA

NETHERLANDS

ITALY

ESTONIA

GERMANY

UNITED KINGDOM

SWEDEN

CYPRUS

SLOVAKIA

LATVIA

FRANCE

SLOVENIA


GREECE

CROATIA

LUXEMBOURG

75%

13%

IRELAND

SWITZERLAND

14%IRELAND

19%

9%

6%

4%

12%

SLOVENIA

LUXEMBOURG

CROATIA

SLOVAKIA

ITALY

UNITED KINGDOM

SWEDEN

NETHERLANDS

BULGARIA

SPAIN

GERMANY

25%

2%

SWITZERLAND

CYPRUS

FRANCE

GREECE

LATVIA


IRELAND

POLAND

13%IRELAND

12%

12%

10%

4%

25%

CROATIA

LUXEMBOURG

GREECE

SLOVENIA

SWEDEN

LATVIA


GERMANY

CYPRUS

FRANCE

SWITZERLAND

SLOVAKIA

ESTONIA

UNITED KINGDOM

ITALY

BULGARIA

SPAIN

NETHERLANDS

33%

4%

IRELAND

POLAND

45%IRELAND

27%

33%

70%

58%

40%

SWITZERLAND


GREECE

FRANCE

SLOVAKIA

UNITED KINGDOM

LATVIA

CYPRUS

GERMANY

NETHERLANDS

SWEDEN

SLOVENIA

POLAND

LUXEMBOURG

ITALY

CROATIA

ESTONIA

BULGARIA

63%

16%

IRELAND

SPAIN

ESTONIA

IMPACT: INNOVATIVENESS (EARLY STAGE ENTREPRENEURS)

Product/service is new to all of our customers

No businesses offer the same

product/service

Business uses the very latest technology

(available less than 1 year)

Across most countries, the ideas and businesses of entrepreneurs tend not be very innovative.

1 in every 7 entrepreneurs in Ireland is using the very latest technology.

Most entrepreneurs provide a product/service that is familiar to customers, have competitors, and use established technologies.

1 in every 6 nascent entrepreneurs and new business owners in Ireland has a product/service that is new to all of their customers.

1 in every 5 entrepreneurs in Ireland has no competing business offering the same product/service.

In Ireland, a significant number of entrepreneurs (40%) have ideas and businesses that are innovative on one of these measures – in that they have a relatively new product; they face few competitors; or are using new technology.

TABLE I IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

17%IRELAND

19%

15%

15%

12%

18%

FRANCE

ITALY

CYPRUS

SLOVENIA

LUXEMBOURG

UNITED KINGDOM

SLOVAKIA

NETHERLANDS

CROATIA

SPAIN

SWITZERLAND

GERMANY

ESTONIA

BULGARIA

POLAND

LATVIA

SWEDEN

GREECE

33%

1%

IRELAND


18%IRELAND

6%

4%

13%

15%

9%

FRANCE

SLOVENIA

UNITED KINGDOM

LUXEMBOURG

ESTONIA

SWEDEN

SPAIN

GERMANY

CYPRUS

CROATIA

SWITZERLAND

SLOVAKIA

NETHERLANDS

LATVIA


ITALY

GREECE

POLAND

18%

1%

IRELAND

BULGARIA

15%IRELAND

9%

13%

11%

9%

16%

CYPRUS


FRANCE

BULGARIA

SLOVAKIA

CROATIA

LUXEMBOURG

SLOVENIA

GREECE

ESTONIA

SPAIN

GERMANY

SWITZERLAND

ITALY

UNITED KINGDOM

NETHERLANDS

SWEDEN

LATVIA

35%

3%

IRELAND

POLAND


WHO ARE IRELAND’S ENTREPRENEURS? (PERSONAL CHARACTERISTICS AND MOTIVES)



High rates of entrepreneurship in Ireland are also evident among “older” age groups. Ireland ranks 3rd in Europe in terms of “senior” entrepreneurship, those aged between 55 and 64 years, with 1 in every 7 Irish entrepreneurs classified as a “senior”.

In contrast, Ireland ranks 9th in Europe in terms of “youth” entrepreneurship - those aged between 18 and 24 years. 1 in 11 entrepreneurs in Ireland is a “youth” entrepreneur. In Estonia nearly 1 in every 4 entrepreneurs is a “youth”.

In Ireland, rates of entrepreneurship are generally higher for those with more education. 7 in every 10 entrepreneurs in Ireland have post-secondary education. Ireland has the 5th highest rate of entrepreneurship in Europe for people with graduate education.

MOTIVESThe strongest primary motivation cited by nascent entrepreneurs and new business owners in Ireland is “to increase income”. 1 in 3 Irish entrepreneurs (33%) cite this motive. However, the second strongest primary motive, more than 1 in 4 Irish entrepreneurs (27%), is ‘“no better alternative” or “seeking to maintain income”.

In Ireland, 20% of entrepreneurs are motivated by a “desire to be independent”. In comparison, more entrepreneurs in Switzerland, 1 in every 2 entrepreneurs, and the US, 1 in every 3 entrepreneurs, is motivated by a “desire to be independent”.

Using a binary “Opportunity” versus “Necessity” categorisation, shows that Irish entrepreneurs are predominately motivated by opportunity (84%), as compared to necessity (16%).

The OECD and the European Union have advocated for inclusive entrepreneurship policies that seek to ensure that all people have the opportunity to be a successful entrepreneur. In their 2017 report “The Missing Entrepreneur”, they identify particular groups that may be under-represented or disadvantaged, including women, youth, seniors, previously unemployed, and immigrants.

PERSONAL CHARACTERISTICSIn 2017 nearly 11 in every 100 of those “born overseas” but living in Ireland was an entrepreneur (nascent entrepreneur or a new business owner). In comparison, about 8 in every 100 of those “born in Ireland” was an entrepreneur.

Of the new business owners in Ireland, 74% were born in Ireland, 12% in the UK (including NI), and 14% were born elsewhere. The last group accounts for 14% of new business owners but only approximately 3% of the Irish population (aged 15-64)

Entrepreneurial intentions are much higher among immigrants, particularly those from “other countries” (i.e. countries other than the UK or the US). 30% of immigrants from “other countries” aspire to start a business in the next 3 years (for those not already active as entrepreneurs). The comparison for those born in Ireland (Republic) is about 8%.

Over the years the majority of nascent entrepreneurs and new business owners in Ireland have been aged between their late twenties and mid-forties. Given the age profile of Ireland’s growing population, Ireland is characterised by a demographic that produces a “demographic dividend” – in that many people in Ireland are in the more entrepreneurial age groups. In Ireland rates of entrepreneurship are about 10% for those aged between 25 and 44 years.

“Migrants” are more entrepreneurial

Nearly 1 in 3 “migrants” aspires to start a business

Women are under-represented as early-stage entrepreneurs

Rates of entrepreneurship are generally higher for those with more education

1 in 3 Irish entrepreneurs are primarily motivated by the desire “to increase income”

1 in 4 Irish entrepreneurs are primarily motivated by “no better alternative” or “seeking to maintain income”


WHEN START? YOUTH AND SENIOR ENTREPRNEURS

Ireland ranks 3rd highest in Europe in terms of senior entrepreneurship.

1 in every 11 entrepreneurs in Ireland is “young” – aged between 18 and 24. In Luxembourg and the Netherlands, nearly 1 in every 6 entrepreneurs is “young”.

6 in every 10 nascent entrepreneurs and new business owners in Ireland are aged between 25 and 44 years.

1 in 7 Irish entrepreneurs is a “senior” – aged between 55 and 64.

Ireland ranks below the European average for youth entrepreneurship.

TABLE J IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

Rate of youth entrepreneurship

(18-25 years)

Rate of senior entrepreneurship

(55-64 years)

6.6%IRELAND

7.5%

3.9%

11.4%

7.6%

17.2%

ESTONIA

LATVIA

LUXEMBOURG

NETHERLANDS

CROATIA

SWEDEN

SLOVENIA

UNITED KINGDOM

GREECE


SPAIN

ITALY

POLAND

GERMANY

BULGARIA

CYPRUS

SWITZERLAND

SLOVAKIA

24.6%

1.6%

IRELAND

FRANCE

7.7%IRELAND

12.5%

4.2%

7.6%

9.3%

8.1%

SLOVAKIA

ESTONIA

NETHERLANDS

UNITED KINGDOM

SWITZERLAND

LUXEMBOURG

SWEDEN

FRANCE

CYPRUS

CROATIA

GERMANY

SPAIN

LATVIA

BULGARIA

POLAND

SLOVENIA

ITALY

GREECE

13.1%

1.5%

IRELAND


WHO STARTS? EDUCATION LEVELS

Rate of entrepreneurship for those with graduate

education

Early stage entrepreneurs with

post secondary education

In Ireland, rates of entrepreneurship are generally higher for those with higher levels of education.

7 in every 10 nascent entrepreneurs and new business owners in Ireland have some form of post-secondary school education.

Ireland ranks 6th highest in Europe for the rate of entrepreneurship among those with a graduate education.

TABLE K IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

15.3%

3.6%

16.8%

15.7%

30.1%

14.6%IRELAND

SLOVAKIA

ESTONIA

LUXEMBOURG

SLOVENIA

LATVIA

SPAIN

NETHERLANDS

UNITED KINGDOM

SWITZERLAND

CROATIA

CYPRUS

SWEDEN

FRANCE

ITALY

19.3%

5.7%

IRELAND

71%IRELAND

79%

63%

87%

74%

86%

FRANCE

CYPRUS

LUXEMBOURG

SWITZERLAND

UNITED KINGDOM

SWEDEN

GERMANY

GREECE

SLOVENIA

ESTONIA

SPAIN

LATVIA

BULGARIA

SLOVAKIA

NETHERLANDS

POLAND


ITALY

88%

22%

IRELAND

CROATIA

BULGARIA



WHY START A NEW BUSINESS? PRIMARY MOTIVE

The “desire to be independent” is the primary motive for 1 in every 5 entrepreneurs in Ireland.

“See no better alternative” or “seeking to maintain income” is the primary motive for nearly 3 in every 10 entrepreneurs in Ireland.

More generally, about 8 in every 10 Irish entrepreneurs is motivated by “opportunity”, compared to about 2 in 10 motivated by “necessity”, in that they see no better alternative for work.

The desire to “to increase income” motivates 3 in every 10 nascent entrepreneurs and new business owners in Ireland. This is the most common “primary” motive in Ireland.

In Switzerland, Germany and the US the “desire to be independent” is a much more common motivation - 1 in every 2 entrepreneurs in Switzerland, 4 in 10 in Germany, and 1 in 3 in the US.

To increase income

To be independent

Multiple mixed motives

No better alternative (“necessity”) or to maintain income

TABLE L IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

33%IRELAND

19%

35%

42%

26%

27%

NETHERLANDS

UNITED KINGDOM

SWEDEN

ITALY

CYPRUS

SLOVENIA

FRANCE

POLAND

ESTONIA

LATVIA

SWITZERLAND

CROATIA

SPAIN

GERMANY


LUXEMBOURG

GREECE

SLOVAKIA

42%

11%

IRELAND

BULGARIA

21%IRELAND

17%

20%

36%

38%

29%

SWITZERLAND

GERMANY

POLAND

LUXEMBOURG

NETHERLANDS

FRANCE

SLOVAKIA

ESTONIA

SPAIN

UNITED KINGDOM

LATVIA

SLOVENIA

SWEDEN

GREECE

BULGARIA

CROATIA

CYPRUS


48%

7%

IRELAND

ITALY

20%IRELAND

45%

23%

4%

7%

23%

ITALY

BULGARIA

SWEDEN

GREECE


LUXEMBOURG

LATVIA

ESTONIA

POLAND

CYPRUS

SLOVENIA

SPAIN

UNITED KINGDOM

SLOVAKIA

CROATIA

NETHERLANDS

FRANCE

GERMANY

42%

6%

IRELAND

SWITZERLAND

27%IRELAND

20%

23%

17%

29%

21%

CROATIA

SLOVAKIA

BULGARIA

SPAIN


CYPRUS

GREECE

SLOVENIA

FRANCE

LATVIA

GERMANY

ESTONIA

SWITZERLAND

UNITED KINGDOM

ITALY

LUXEMBOURG

POLAND

NETHERLANDS

47%

10%

IRELAND

SWEDEN

GENDER AND ENTREPRENEURSHIP



and women, for example Sweden and Poland. As is the case in many countries, in Ireland more men (52% of all men) than women (33% of all women) believe they have the skills and knowledge to start a business. About half of all men, compared to four in every ten women, believe that “it is easy to start a business in Ireland”.

These differences between men and women in terms of perceptions of opportunities and perceptions of knowledge and skills required to start a business may explain the differences in entrepreneurial aspirations between men and women. For those men and women not currently active as entrepreneurs, 19% of men and 11% of women, aspire to start a new business within the next three years.

The ideas and new businesses of men and women differ in terms of sectors of activity.

In Ireland consumer services sectors, such as retail, motor, lodgings, restaurants, personal services, health, education, and recreation are the dominate focus of current entrepreneurial activity. These activities are more important for women than they are for men. Consumer services sectors account for 58% of ideas and businesses of women compared to 38% for men.

Nearly one third of women (30%) are active in government, health, education and social services sectors, compared to just 11% of men. Similarly, more women (27%) than men (20%) entrepreneurs are in retail trade, hotels and restaurants. However, a similar percentage of women (13%) and men (14%) are active in in the professional services sector. Though even in professional services sector, there

The rate of entrepreneurship (nascent entrepreneurs and new business owners) for women in Ireland is 8th highest in Europe. The rate for men is 4th highest in Europe.

In Ireland, men are nearly twice as likely to be an entrepreneur (nascent entrepreneurs and new business owners) compared to women. This “gap” between men and women is higher in Ireland than in many other European countries. In some countries, such as the Netherlands and Spain, the gap between men and women is very narrow. In the case of the Netherlands, the rate of entrepreneurship for women is higher than it is in Ireland (9.4%, compared to 6.3%), while the rate for men, though high, is lower (10.5%, compared to 11.7%). This means that a man in the Netherlands is just 1.1 times more likely than a woman to be an entrepreneur, while in Ireland a man is 1.9 times more likely than a woman to be an entrepreneur.

This gender gap is evident in the number of those that started a business in 2017. There were an estimated 17,000 men and 9,800 women new business owners in Ireland in 2017. If women started businesses at the same rate as men, an additional 8,000 more women would have started a business in 2017.

Men and women differ in terms of their perceptions of entrepreneurial opportunities and their self-belief that they have the skills and knowledge required to start a business.

More men (48% of all men) than women (41% of all women) perceive opportunities to start a business in Ireland. There are countries where the perceptions of entrepreneurial opportunities are high among both men

Women in Ireland rank 8th highest in Europe for entrepreneurship

Men in Ireland rank 4th highest in Europe for entrepreneurship

Men are nearly twice as likely as women to be an entrepreneur in Ireland

There are many more men (17,000) than women (9,800) new business owners in Ireland in 2017

More men than women perceive opportunities to start a business in Ireland

More men than women aspire to start a business in Ireland


Nearly 1 in 3 women (entrepreneurs) are active in the “Government, health, education and social services” sector

Men and women entrepreneurs differ in terms of growth expectations but are similar in international orientation

are more men, as the rate of entrepreneurship is higher for men.

In Ireland more men (79%) than women (54%) that are nascent entrepreneurs and new business owners are, or expect to be, employers. Men and women also differ in terms of growth expectations. In Ireland of all entrepreneurs, 28% of men and 9% of women, expect to employ 10 or more and to increase the number of jobs by fifty percent within 5 years.

Men and women entrepreneurs do not differ in terms of their international orientation.


RATES OF ACTIVITY IN POPULATIONNascent entrepreneurs

New business owners

Early stage entrepreneurs (TEA) Established owner-managers

Exited a business (not continued)

Intrapreneurs

4.1%

6.3%

1.4%

2.3%

2.2%

4.8%

7.6%

11.7%

2.3%

4.2%

6.6%

8.3%

ASPIRATIONS, ATTITUDES & PERCEPTIONS

IMPACT OF EARLY STAGE ENTREPRENEURS

54%72%

9%28%

25%29%

SECTOR FOCUSConsumer services

Any jobs now or expected in 5 years

Born global - more than 25% revenues from overseas

More than 10 jobs in 5 years time (and doubling number of jobs)

Aspire to start a

business

2 in 10

Perceive opportunities for start-ups

Believe they have the skills and knowledge

to start a business

5 in 10

Easy to start a business in Ireland

5 in 10

1 in 10

5 in 10

4 in 10 3 in 10 4 in 10

Business services

Medium/high tech

38% 58%

34% 15%

Extractive or transformative 28% 27%

14% 6%


GENDER: EARLY STAGE ENTREPRENEURIAL ACTIVITY

Rate for men

Rate for women

Rate as a ratioMen:Women

Men are much more likely than women to be new business owners – nearly twice as likely in Ireland.

The rate of entrepreneurship (nascent and new business owners) for women in Ireland is 8th highest in Europe. The rate for men is 4th highest in Europe.

About 17,000 men and 9,800 women started a new business (that is paying wages) in Ireland in 2017.

In Ireland, for entrepreneurs (nascent and new business owners) more men (72%) than women (54%) are, or expect to be, employers.

Men and women in Ireland differ in terms of growth expectations. 28% of men who are entrepreneurs, compared to 9% of women who are entrepreneurs, expect to have 10 or more jobs and to double jobs within 5 years.

TABLE M IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

6.3%IRELAND

10.7%

2.8%

10.7%

9.2%

15.0%

ESTONIA

LATVIA

SLOVAKIA

NETHERLANDS

POLAND

LUXEMBOURG

CROATIA

SWITZERLAND

CYPRUS

SWEDEN

SPAIN

UNITED KINGDOM

SLOVENIA

GERMANY

GREECE

BULGARIA


FRANCE

14.4%

2.4%

IRELAND

ITALY

1.9:1IRELAND

1.4:1

2.3:1

1.6:1

1.7:1

1.5:1

NETHERLANDS

SPAIN

POLAND

SLOVAKIA

BULGARIA

GREECE

CYPRUS

SWEDEN

LATVIA

GERMANY

ESTONIA

CROATIA

LUXEMBOURG


SWITZERLAND

UNITED KINGDOM

SLOVENIA

FRANCE

1.1 : 1

2.6 : 1

IRELAND

ITALY

11.7%IRELAND

14.8%

6.5%

16.7%

15.3%

22.6%

ESTONIA

LATVIA

SLOVAKIA

LUXEMBOURG

UNITED KINGDOM

CROATIA

SWITZERLAND

NETHERLANDS

POLAND

SLOVENIA

CYPRUS

SWEDEN

SPAIN

GERMANY

ITALY

GREECE

FRANCE


24.5%

4.4%BULGARIA

IRELAND


GENDER: PERCEPTIONS OF OPPORTUNITIES AND SKILLS (GENERAL POPULATION)

About 5 in every 10 men, compared to 4 in every 10 women, in Ireland believe “that it is easy to start a business”.

Many more men than women in Ireland believe they have the skills and knowledge to start a business. This is the case across many European countries.

About 5 in 10 men, and 4 in 10 women, perceive opportunities to start a business in Ireland.

Men Women

Opportunities in local area

Men Women

Skills & knowledge to start-upTABLE N IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

48%IRELAND

59%

7%

69%

54%

63%

SWEDEN

NETHERLANDS

POLAND

ESTONIA

LUXEMBOURG

SWITZERLAND

CYPRUS

GERMANY

UNITED KINGDOM

SLOVENIA

FRANCE

CROATIA

LATVIA

SPAIN

ITALY

SLOVAKIA

BULGARIA


81%

15%GREECE

IRELAND

52%IRELAND

44%

17%

62%

57%

63%

SLOVENIA

CROATIA

UNITED KINGDOM

ESTONIA

SLOVAKIA

CYPRUS

LATVIA

SWITZERLAND

POLAND

NETHERLANDS

LUXEMBOURG

GREECE

SPAIN

BULGARIA

FRANCE

GERMANY


SWEDEN

59%

37%ITALY

IRELAND

41%IRELAND

58%

8%

59%

49%

57%

SWEDEN

POLAND

ESTONIA

NETHERLANDS

CYPRUS

LUXEMBOURG

UNITED KINGDOM

SWITZERLAND

LATVIA

GERMANY

SLOVENIA

FRANCE

CROATIA

SPAIN

ITALY

SLOVAKIA

BULGARIA

GREECE

77%

11%BOSNIA AND HERZEGOVINA

IRELAND

33%IRELAND

44%

5%

46%

41%

48%

POLAND

SLOVENIA

LATVIA

CROATIA

ESTONIA

SPAIN

SLOVAKIA

UNITED KINGDOM

CYPRUS

NETHERLANDS

GREECE

BULGARIA

LUXEMBOURG

SWITZERLAND

GERMANY

FRANCE


SWEDEN

53%

24%ITALY

IRELAND

OWNER-MANAGERS OF ESTABLISHED BUSINESSES


Half of all Irish owner-managers believe that entrepreneurship is a good career choice, and that it is “easy to start a business in Ireland”, while more (60%) see opportunities for new businesses in their local area.

Established owner-managers are those that own and manage a business that they were involved in starting. That is, these individuals started a business in the past and have retained both management and ownership roles. As such, this measure is different from measures of self-employment and the general usage of the term owner-manager, which would include, for example, individuals that acquire a business and subsequent generations that take over the running and ownership of a family business. It also, in this report, does not include individuals with new businesses (less than 3.5 years old) – these individuals are classified as new business owners.

In Ireland, about 1 in 25 people (4.4%) reported that they are an owner-manager of an established business (at least 3.5 years old). This is low in a European context (7.7% on average).

The majority of Irish owner-managers are over 45, with two-thirds aged between 45 and 64. This is high relative to many other countries (average of 54% in Europe). The vast majority of owner-managers (9 in every 10) in Ireland live in a either household that is in the middle-third or top-third of all households based on household income.

The businesses of Irish owner-managers are mostly in low technology sectors, with just 1 in 17 Irish owner-managers active in medium or high technology sectors. Just 1 in 16 Irish owner-managers expect to employ ten or more, and to double the number of jobs, within 5 years. However, this is a high rate relative to other European countries. Irish owner-managers are very active in international markets, with 1 in 5 having, or expecting to have, more than 25% of their revenues from customers outside of Ireland within the next five years.

The number of owner-managers in Ireland is low in a European context

The majority of Irish owner- managers are over 45 years old

9 in 10 owner-managers live in households classified as middle-third or top-third in terms of household income

Just 1 in 17 Irish owner-managers is active in medium or high technology sectors.



128,000OWNER MANAGERS

OF ESTABLISHED BUSINESSES IN 2017

SECTORS

INTERNATIONAL ORIENTATION

6% IN MEDIUM OR HI-TECH SECTOR

JOBS EXPECTATIONS

6% EXPECT TO HAVE 10+ JOBS IN 5 YEARS

JOBS IMPACT

85% IS AN EMPLOYER, OR WILL BE WITHIN 5 YEARS

9%18-29 YRS

27%40-49 YRS

27%30-39 YRS

37%50-64 YRS

AGE

WHO ARE THEY?EDUCATION68% HAVE POST SECONDARY EDUCATION

RESOURCES (HOUSEHOLD INCOME)

13% 44% 43%LOWEST THIRD MIDDLE THIRD HIGHEST THIRD

GENDER

75% 25%

71% 20%HAVE INTERNATIONAL

CUSTOMERS(SOME REVENUE

FROM OVERSEAS)

VERY INTERNATIONAL (>25% REVENUES FROM OVERSEAS)

35% CONSUMER

SERVICES

28% BUSINESS SERVICES

37% EXTRACTIVE AND

TRANSFORMATIVE

1 IN 5 BORN OUTSIDE IRELAND

REGION OF RESIDENCE

PLACE OF BIRTH AND CURRENT RESIDENCE

45% Dublin, Mid east, South east

34% West,

Mid-West,South-West

21% Border,

Midlands

MOTIVES

INDEPENDENCE NO BETTER ALTERNATIVES

MULTIPLE MIXED MOTIVES

INCREASE INCOME

30% 25% 15% 30%


OWNER-MANAGERS OF ESTABLISHED BUSINESSES

9 in 10 owner-managers in Ireland are in the top-third or middle-third of all households based on income.

Owner-managers in Ireland are well educated. Nearly 7 of every 10 have some form of post-secondary school education.

6 in 10 owner-managers in Ireland see opportunities for new businesses.

1 in 2 owner-managers in Ireland believe that “it is easy to start a business in Ireland”.

1 in 2 owner-managers in Ireland believe that “entrepreneurship is a good career choice”.

More than 6 of every 10 owner-managers of established businesses in Ireland are aged between 45 and 64 years. This is high relative to other countries.

The rate of owner-managers of established businesses in Ireland is relatively low.

8 in 10 owner-managers in Ireland were born in Ireland. 1 in 10 was born in the UK, including NI.

Owner-managers of established businesses are those that continue to own and manage a business that they started prior to 2014.

TABLE O IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

Owner-managers of established

businesses

% of owner-managers of established

businesses aged 45-64

4.4%IRELAND

3.3%

6.3%

7.8%

9.0%

6.2%

GREECE

ESTONIA

SWITZERLAND

SLOVAKIA

POLAND

CYPRUS

NETHERLANDS

LATVIA

SPAIN

SLOVENIA

UNITED KINGDOM

BULGARIA

GERMANY

ITALY

CROATIA

SWEDEN

FRANCE

LUXEMBOURG

12.4%

1.4%

IRELAND


64%IRELAND

54%

58%

59%

66%

64%

GERMANY

SPAIN

SWEDEN

SLOVAKIA

SWITZERLAND

UNITED KINGDOM


CYPRUS

NETHERLANDS

ESTONIA

FRANCE

LUXEMBOURG

SLOVENIA

LATVIA

BULGARIA

POLAND

CROATIA

ITALY

71%

22%

IRELAND

GREECE


OWNER-MANAGERS OF ESTABLISHED BUSINESSES IMPACT: SECTOR, GROWTH EXPECTATIONS, INTERNATIONAL ORIENTATION

High or medium technology sectors only

Expect 10 or more jobs within the next

5 years and to increase jobs by 50%

More than 25% of revenues from

customers outside the country

Irish owner-managers are active in international markets.

1 in 17 owner-managers in Ireland expects to have 10 or more jobs and to double jobs within 5 years. Ireland ranks fifth highest in Europe.

Irish owner-managers have relatively high growth expectations.

Medium and high technology sectors (OECD classifications) are the focus of the ideas or new businesses of 1 in 17 owner-managers of established businesses in Ireland.

1 in 5 owner-managers in Ireland has more than 25% of annual revenues from customers outside the country.

TABLE P IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

6%IRELAND

22%

11%

11%

11%

8%

SWEDEN

LUXEMBOURG

SWITZERLAND

SLOVENIA

ITALY

NETHERLANDS

FRANCE

SPAIN

LATVIA

GERMANY

UNITED KINGDOM

SLOVAKIA

POLAND

ESTONIA

GREECE

CROATIA

CYPRUS

BULGARIA

21%

0%

IRELAND


6%IRELAND

1%

4%

6%

7%

9%

CROATIA

SLOVAKIA

LATVIA

ITALY

UNITED KINGDOM

SLOVENIA

ESTONIA

SWITZERLAND


SWEDEN

POLAND

BULGARIA

GERMANY

FRANCE

NETHERLANDS

CYPRUS

SPAIN

LUXEMBOURG

11%

1%

IRELAND

GREECE

20%IRELAND

13%

3%

14%

10%

29%

CROATIA

LUXEMBOURG

CYPRUS

SWITZERLAND


SLOVENIA

LATVIA

ESTONIA

SLOVAKIA

GREECE

GERMANY

SWEDEN

UNITED KINGDOM

ITALY

FRANCE

NETHERLANDS

POLAND

SPAIN

40%

2%

IRELAND

BULGARIA

INVESTORS AND BUSINESS ANGELS



Extrapolating to the population suggests that informal investors in Ireland provided at least €180 million to entrepreneurs in 2017. This is in addition to the money that entrepreneurs use to fund their own businesses.

Men in Ireland are more likely than women to have provided funds to someone else’s business in the past three years. In Ireland, 6 in every 100 men, compared to 2 in every 100 women, is an informal investor.

In Ireland, men more often provide funds to a work colleague, friend, or stranger (74%), rather than to a close family member or relative (26%). Women, in contrast, provide funds equally to a close family member or relative (50%), and to a work colleague, friend, or stranger (50%). Men invest higher amounts when providing funds.

INVESTORS AND BUSINESS ANGELSThe number of informal investors in Ireland is relatively low. Informal investors are those that have provided funds in the past 3 years to others that are starting a business. Ireland ranks 12th in Europe. In 2017 4.1% of people (adults, aged 18-64), or 1 in 24, provided funds to some else’s new business in Ireland in the past 3 years. The mean amount invested in Ireland was €25,500. The median amount invested was €7,000.

Typically informal investors provide funds to someone known to them, such as a family member, a relation, a work colleague, or a friend. In Ireland, nearly 9 in every 10 informal investors reported that they had provided funds to a family member, a friend or a work colleague.

About 13% of informal investors are “Business Angels” – those that invest in a “stranger’s” business. There were nearly 5,000 business angels in Ireland in 2017 – having invested at some time during 2017.

The number of informal investors in Ireland is relatively low (12th of 20 European countries)

Informal investors are a significant source of funds: providing at least €180 million to entrepreneurs

More men are informal investors; men are more likely to invest outside the family; and men provide more funds


INFORMAL INVESTORS BY GENDER

AVERAGE INVESTMENT

IN... WORK COLLEAGUE, FRIEND, STRANGER

INVEST IN... CLOSE FAMILY / RELATIVE

74% 50%26% 50%6% 2.2%

INFORMAL INVESTOR RATE IN POPULATION

FEMALE €13,000MALE €30,000

Close family

member/relative33%

Friend or neighbour

42%

Co-worker

12%

Stranger

13%

WHO THEY INVEST IN

ASPIRATIONS, ATTITUDES AND PERCEPTIONS OF INVESTORS AND BUSINESS ANGELS

6 IN 10 PERCEIVE OPPORTUNITIES FOR START-UPS

61%

5 IN 10 ASPIRES TO START IN NEXT 3 YEARS

47%

7 IN 10 BELIEVE THEY HAVE THE SKILLS AND KNOWLEDGE TO START A BUSINESS

72%

7 IN 10 BELIEVE ENTREPRENEURSHIP IS A GOOD CAREER CHOICE

68%

RESOURCES (HOUSEHOLD INCOME)Lowest Third Middle Third Highest Third

9% 41% 50%

€25,500 (MEAN)€7,000 (MEDIAN)

40,000INVESTORS AND BUSINESS ANGELS IN 2017

HOW MUCH


INFORMAL INVESTORS: RATES AND AMOUNTS

Informal investors

Total invested in past 3 years

(mean)

4 in every 100 people have provided funds to some else’s new business in the past 3 years in Ireland.

Nearly 9 in every 10 Irish informal investors provide funds to entrepreneurs they know – such as a family member, a friend, a neighbour, or a work colleague.

5,000 “business angels” (13% of informal investors) invested in a “stranger’s” business in 2017.

€25,500 is the average (mean) amount of money provided by an informal investor in Ireland. However, many informal investors provide relatively small amounts of money- the median amount is €7,000.

Extrapolating to the general population suggests that in 2017 in Ireland informal investors provided at least €180 million.

The number of informal investors in Ireland is relatively low. Ireland ranks 12th of 20 countries in Europe.

Informal investors refer to those that have provided funds in the past three years to a new business started by someone else.

TABLE Q IN THE COMPARATIVE INTERNATIONAL DATA SECTION CONTAINS FULL DATA FOR EACH COUNTRY

4.1%IRELAND

7.8%

2.5%

6.7%

4.6%

9.4%

ESTONIA

SWEDEN

SLOVAKIA

LUXEMBOURG

SWITZERLAND

LATVIA

CYPRUS

SLOVENIA

GERMANY

CROATIA

POLAND

NETHERLANDS

GREECE

SPAIN

FRANCE

UNITED KINGDOM


BULGARIA

9.4%

2.2%

IRELAND

ITALY

€25.5KIRELAND

€28,900

€50,800

€17,800

€37,800

€27,200

SWITZERLAND

LUXEMBOURG

FRANCE

GERMANY

ITALY

CROATIA

BULGARIA

GREECE

UNITED KINGDOM

SPAIN

SLOVAKIA

POLAND

CYPRUS

LATVIA

NETHERLANDS

ESTONIA

SWEDEN

SLOVENIA

€61.8K

€2.8K

IRELAND


THE ECO-SYSTEM FOR ENTREPRENEURSHIP



ACCESS TO FINANCE Many of the Irish entrepreneurs and experts identified access to finance as a constraint. This constraint is not specific to Ireland as in many countries entrepreneurs and experts identify access to some form of finance as a constraint to entrepreneurship. In Ireland, specific comments by entrepreneurs and experts referred to different stages and types of funding that start-ups might seek to access. For example, “lack of small scale start-up capital”, “lack of finance when friends and family can no longer provide funding”, “growth funding”, “access to debt”, “access to bank finance” and the “absence of debt finance in particular for technology companies”. Aspects of the financing eco-system in Ireland considered as strengths included access to finance from Enterprise Ireland, accelerators, and the Local Enterprise Offices. Specific positive comments included “start-up funding for innovative exporting companies” and “grants for expanding exporting companies”. Suggestions for improving access to finance for entrepreneurs in Ireland generally referred to using the tax system to recognise the risk taking of entrepreneurs and to encourage private investment.

GOVERNMENT PROGRAMMES AND POLICIESIrish entrepreneurs and experts were generally very positive about government programmes that support entrepreneurs, including specifically programmes aimed at supporting new and growing firms (e.g. Enterprise Ireland, Local Enterprise Offices (LEOs).

A further strength related to government programmes and policy identified by Irish entrepreneurs and experts was

The assessment of a country’s entrepreneurial eco-system is based on a survey of key informants which are made up of experts and entrepreneurs. In Ireland half of these key informants are entrepreneurs. All comments quoted are from Irish entrepreneurs and experts.

THE START-UP ECOSYSTEM Some entrepreneurs and experts considered the start-up ecosystem in Ireland a strength. Strengths in Ireland’s entrepreneurial eco-system included the range of supports available to entrepreneurs, including the availability of support programmes, incubation space, enterprise centres and technology parks. Strengths also included supports from within “the entrepreneurial community”, such as role models, serial entrepreneurs, mentoring from experienced entrepreneurs, informal supports from other entrepreneurs, and links between start-ups and larger businesses.

Aspects of the start-up eco-system identified as constrains included “internet availability”, “rural broadband”, “cost of labour” and costs of running businesses, such as overheads, rents and rates, insurance, “legal and professional advice”, “cost of living”, and how this impacts of the availability of labour, and “access to government contracts”.

Other positive aspects of the Irish eco-system included the culture for entrepreneurship in Ireland – “willingness to take risks”, “increasingly a creative spirit”, and “improvements in attitudes to failure”. The education system – ‘“high standard of education” and “focus on entrepreneurial skills” was also a positive for some entrepreneurs and experts. However, some noted less positive aspects of the eco-system, including aspects of the education system, some aspects of culture for entrepreneurship in Ireland, and the constraint of the small size of the Irish market.

The start-up ecosystem in Ireland was considered a strength by experts and entrepreneurs

“Start-up costs” and “access to broadband” cited as constraints by some experts and entrepreneurs

Access to finance was identified as a constraint by many entrepreneurs and experts

Government programmes for entrepreneurs were identified as a strength


how the science and technology base in Ireland supports the creation of world-class new technology-based ventures.

Entrepreneurs and experts were less positive about aspects of government policy. While some aspects of government policy were seem as facilitating entrepreneurship – “government policy is pro-business”, comments were not uniformly positive. For example, aspects of the taxation system were seen to act as a constraint to entrepreneurship, as were the high costs of doing business in Ireland. Entrepreneurs and experts had recommendations for government in areas of taxation policy. For example, “more widespread/easily implemented tax breaks for investors”, and “change tax laws to recognise risk taking of entrepreneurs”.


THE ECO-SYSTEM: POLICY AND PROGRAMMES

GOVERNMENT POLICYGOVERNMENT CONCRETE POLICIES, PRIORITY AND SUPPORT FOR ENTREPRENEURS

GOVERNMENT POLICIES (E.G. PUBLIC PROCUREMENT) CONSISTENTLY FAVOR NEW FIRMS*

GOVERNMENT PROGRAMMESGOVERNMENT PROGRAMMES FOR ENTREPRENEURS

GOVERNMENT PROGRAMMES AIMED AT SUPPORTING NEW AND GROWING FIRMS ARE EFFECTIVE*

FRANCE ESTONIAGERMANYIRELAND

LUXEMBOURGNETHERLANDSSWITZERLAND

IRELANDLUXEMBOURGNETHERLANDS

(HIGH: SCORE 5.5-6.5)(HIGH: SCORE 5.5-6.5) (HIGH: SCORE 5.5-6.5) (HIGH: SCORE 5.5-6.5)



(LOW: SCORE 3.5-4.5)(LOW: SCORE 3.5-4.5)

BOSNIA & HERZEGOVINACYPRUSGERMANYIRELAND

ITALYSLOVENIASPAINSWEDENUK

ESTONIA ITALY

BOSNIA & HERZEGOVINABULGARIACROATIAITALY

POLANDSLOVENIASWEDENUK

BOSNIA & HERZEGOVINABULGARIAITALY

LATVIASWEDEN

(LOW: SCORE 3.5-4.5) (LOW: SCORE 3.5-4.5)

(MEDIUM: SCORE 4.5-5.5)(MEDIUM: SCORE 4.5-5.5) (MEDIUM: SCORE 4.5-5.5)

ESTONIALATVIALUXEMBOURG

NETHERLANDSPOLANDSWITZERLAND

GERMANYIRELANDLATVIALUXEMBOURG

SLOVENIASPAINSWEDENUK

FRANCELATVIASPAIN

ESTONIAFRANCEGERMANYSLOVENIA

SPAINSWITZERLANDUK

(MEDIUM: SCORE 4.5-5.5)

BULGARIACROATIA

GREECESLOVAKIA

BOSNIA & HERZEGOVINABULGARIA

CROATIACYPRUSSLOVAKIA

(LOW: SCORE 2.5-3.5)(LOW: SCORE 2.5-3.5)

CYPRUSGREECESLOVAKIA

CROATIACYPRUSGREECE

POLANDSLOVAKIA


AUSTRALIA (4)CANADA (5)ISRAEL (3)

JAPAN (4)USA (4)


JAPAN (4)USA (4)

COMPARATOR COUNTRIESCOMPARATOR COUNTRIES


JAPAN (4)USA (4)


JAPAN (5)USA (4)

COMPARATOR COUNTRIES COMPARATOR COUNTRIES

FRANCENETHERLANDS

POLANDSWITZERLAND

*rankings based on median score

GREECE

(LOW: SCORE 1.5-2.5)(LOW: SCORE 1.5-2.5) (LOW: SCORE 1.5-2.5) (LOW: SCORE 1.5-2.5)


THE ECO-SYSTEM: FINANCIAL SUPPORTS, TECHNOLOGY TRANSFER AND EDUCATION

FINANCIAL SUPPORTS TECHNOLOGY TRANSFER ENTREPRENEURSHIP EDUCATION

ESTONIAFRANCEGERMANYIRELANDLATVIAPOLANDSLOVAKIA

SLOVENIASWEDENSWITZERLANDUK

BULGARIASLOVENIASPAIN

BOSNIA & HERZEGOVINACYPRUSFRANCEITALYLATVIA

LUXEMBOURGSLOVAKIASLOVENIASPAINUK

(MEDIUM: SCORE 4.5-5.5) (MEDIUM: SCORE 4.5-5.5) (MEDIUM: SCORE 4.5-5.5)

CYPRUSGREECE

(LOW: SCORE 2.5-3.5)

BOSNIA & HERZEGOVINA

CROATIASLOVAKIA


NETHERLANDS

NETHERLANDS ESTONIAFRANCEIRELANDITALY

LUXEMBOURGSWEDENSWITZERLANDUK

ESTONIANETHERLANDSSWITZERLAND

(HIGH: SCORE 5.5-6.5) (HIGH: SCORE 5.5-6.5) (HIGH: SCORE 5.5-6.5)



BULGARIABOSNIA & HERZEGOVINACROATIA

ITALYLUXEMBOURGSPAIN


CYPRUSGERMANYGREECE

LATVIAPOLAND


BULGARIACROATIAGERMANYGREECE

IRELANDPOLANDSWEDEN



JAPAN (5)USA (5)

COMPARATOR COUNTRIES

AUSTRALIA (5)CANADA (7)ISRAEL(6)

JAPAN(7)USA (6)



JAPAN (4)USA (5)


FINANCIAL ENVIRONMENT FOR ENTREPRENEURS THE SCIENCE AND TECHNOLOGY BASE EFFICIENTLY SUPPORTS THE CREATION OF WORLD-CLASS NEW TECHNOLOGY-BASED VENTURES IN AT LEAST ONE AREA (OF TECHNOLOGY)*

ENTREPRENEURIAL LEVEL OF EDUCATION AT VOCATIONAL, PROFESSIONAL, COLLEGE AND UNIVERSITY

*rankings based on median score


THE ECO-SYSTEM: CULTURE, SUPPORTING SERVICES AND INFRASTRUCTURE

CULTURAL, SOCIAL NORMS AND SOCIETY SUPPORT


JAPAN (4)USA (7)

(HIGH: SCORE 7.5-8.5)


PROFESSIONAL AND COMMERCIAL INFRASTRUCTURE ACCESS


JAPAN (4)USA (5)



PHYSICAL INFRASTRUCTURES AND SERVICES ACCESS

ESTONIANETHERLANDS


JAPAN (7)USA (6)



BOSNIA & HERZEGOVINAESTONIAGERMANY

LATVIALUXEMBOURGNETHERLANDSSWITZERLAND


CROATIAGREECEIRELAND

SPAINUK


IRELANDLATVIA SWEDEN

SWITZERLANDUK


BULGARIACROATIACYPRUSFRANCEGREECE

IRELANDITALYPOLANDSLOVAKIASLOVENIA

SPAINSWEDENUK


ITALY




CROATIA SLOVAKIA


(LOW: SCORE 3.5-4.5) (LOW: SCORE 3.5-4.5) (LOW: SCORE 3.5-4.5)

BOSNIA & HERZEGOVINABULGARIACYPRUSFRANCEGERMANY

GREECEITALYLUXEMBOURGPOLANDSLOVENIASPAIN

ESTONIANETHERLANDS


BOSNIA & HERZEGOVINABULGARIACYPRUSFRANCEGERMANYLATVIA

LUXEMBOURGPOLANDSLOVAKIASLOVENIASWEDENSWITZERLAND

COMPARATIVE INTERNATIONAL DATA



TABLE A - ENTREPRENEURSHIP ACTIVITY

Nascent New Early stage entrepreneurs business entrepreneurs owners (TEA) % of adults % of adults % of adults

Ireland 5.8 3.3 8.9 European comparator countriesBosnia and Herzegovina 2.5 1.4 4.0Bulgaria 1.8 2.0 3.7Croatia 6.1 2.9 8.9Cyprus 3.6 3.8 7.3Estonia 13.4 6.2 19.4France 2.9 1.1 3.9Germany 3.4 2.0 5.3Greece 2.3 2.6 4.8Italy 2.7 1.7 4.3Latvia 9.4 5.1 14.2Luxembourg 6.7 2.6 9.1Netherlands 4.7 5.4 9.9Poland 6.7 2.2 8.9Slovakia 8.2 3.8 11.8Slovenia 4.0 3.0 6.9Spain 2.8 3.5 6.2Sweden 5.3 2.1 7.3Switzerland 4.7 3.9 8.5United Kingdom 4.4 4.2 8.4European average 5.1 3.1 8.1 International comparator countriesAustralia 6.4 5.9 12.2Canada 11.3 8.1 18.8Israel 8.4 5.1 12.8Japan 3.2 1.6 4.7USA 9.4 4.6 13.6


TABLE B - RATES OF INTRAPRENEURSHIP

Intrapreneur Intrapreneur Intrapreneur Intrapreneur in past 3 years in past 3 years now now % of adults % of adults in % of adults % of adults in employment employment

Ireland 5.5 8.1 4.5 6.6 European comparator countriesBosnia and Herzegovina 0.5 1.7 0.4 1.4Bulgaria 0.5 0.7 0.4 0.5Croatia 4.8 9.2 3.9 7.4Cyprus 1.8 3.0 1.5 2.5Estonia 9.1 12.8 7.1 9.9France 3.9 6.3 3.1 5.0Germany 5.7 8.3 4.4 6.5Greece 0.9 2.1 0.8 1.9Italy 2.4 5.1 2.2 4.7Latvia 4.4 6.3 3.4 4.9Luxembourg 8.0 11.2 6.3 8.7Netherlands 7.6 9.7 5.5 7.1Poland 3.2 6.0 2.9 5.3Slovakia 2.6 4.6 2.4 4.1Slovenia 6.0 9.9 5.0 8.3Spain 1.4 2.9 1.2 2.6Sweden 6.2 7.9 4.6 5.8Switzerland 4.8 6.7 3.6 5.0United Kingdom 8.0 11.0 6.5 9.0European average 4.4 6.7 3.5 5.4 International comparator countriesAustralia 7.8 11.4 6.0 8.7Canada 8.2 11.9 6.6 9.6Israel 8.6 11.8 6.2 8.6Japan 2.8 4.2 2.2 3.4USA 7.6 11.0 6.3 9.2


TABLE C - BUSINESS EXITS: RATES AND REASONS FOR DISCOUNTED BUSINESSES Entrepreneurs Entrepreneurs Opportunity Business Problems Found another Exit was Retirement Family Consequence Government/ exited in last exited in last to sell the was not getting job or business planned in or personal of single tax policy/ 12 months and 12 months and business profitable finance opportunity advance reasons incident bureaucracy business business CONTINUED DISCONTINUED % of adults % of adults % % % % % % % % %

Ireland 1.4 1.9 6 23 14 18 2 3 29 0 5 European comparator countriesBosnia and Herzegovina 0.7 0.6 4 25 24 0 7 3 30 3 5Bulgaria 0.3 1.0 0 59 23 5 0 0 14 0 0Croatia 2.0 1.9 0 34 15 6 1 5 25 1 12Cyprus 1.6 2.7 5 40 7 12 4 5 23 5 0Estonia 1.5 2.9 8 27 11 18 8 1 16 2 8France 1.4 1.9 8 24 17 6 0 5 13 9 19Germany 0.7 1.0 6 29 6 13 9 3 27 2 6Greece 0.4 4.7 5 54 6 0 0 5 11 0 19Italy 1.0 1.1 2 20 23 5 0 8 11 0 31Latvia 1.2 3.0 6 29 9 6 1 1 20 2 25Luxembourg 0.9 2.3 7 26 15 15 11 9 10 0 7Netherlands 1.0 2.1 1 15 16 18 3 0 12 0 35Poland 0.8 2.1 10 28 8 15 5 4 15 6 10Slovakia 1.4 2.8 5 38 12 9 5 5 12 8 4Slovenia 0.8 1.5 3 22 9 22 3 8 9 3 19Spain 0.6 1.3 5 56 7 5 1 7 16 0 4Sweden 0.4 2.1 11 13 4 18 11 3 21 6 14Switzerland 0.8 0.4 10 10 11 12 28 0 28 1 0United Kingdom 0.6 1.9 2 19 8 22 6 6 25 4 7European average 1.0 2.0 5 30 12 11 5 4 18 3 11 International comparator countriesAustralia 1.1 2.8 10 32 3 14 3 3 17 9 8Canada 3.5 3.3 28 18 12 14 2 7 14 1 4Israel 1.1 3.6 5 38 14 6 5 4 20 3 4Japan 0.7 0.8 13 27 3 8 7 0 25 17 0USA 2.0 2.0 0 8 5 30 8 5 21 2 20


TABLE D - A “CULTURE” FOR ENTREPRENEURSHIP

Aspiring Successful There are Entrepreneurship entrepreneurs entrepreneurs many stories is a good are held in of successful career choice high regard entrepreneurs in the media % of adults % of adults % of adults % of adults

Ireland 14.8 82 73 53 European comparator countriesBosnia and Herzegovina 6.8 66 26 63Bulgaria 5.6 68 48 54Croatia 22.8 48 48 62Cyprus 18.4 62 51 66Estonia 22.3 65 61 54France 19.1 74 47 59Germany 8.9 78 50 51Greece 7.4 66 43 63Italy 12.2 73 55 64Latvia 21.8 59 58 57Luxembourg 16.5 70 49 43Netherlands 10.4 68 63 81Poland 11.2 68 51 79Slovakia 14.9 60 59 48Slovenia 16.7 73 73 55Spain 6.8 48 51 54Sweden 10.0 71 65 54Switzerland 12.3 73 59 53United Kingdom 9.2 76 58 56European average 13.4 67 54 59 International comparator countriesAustralia 15.4 69 74 54Canada 23.1 74 77 66Israel 30.6 86 55 65Japan 7.5 52 56 24USA 19.0 75 74 63


TABLE E - PERCEPTIONS OF OPPORTUNITIES & CAPABILITIES IN THE GENERAL POPULATION

Opportunities Skills & Role models: Fear of failure in local area knowledge know a recent prevent to start-up entrepreneur start-up % of adults % of adults % of adults % of adults

Ireland 45 42 30 39 European comparator countriesBosnia and Herzegovina 13 35 31 34Bulgaria 19 38 36 44Croatia 34 51 32 37Cyprus 51 46 38 55Estonia 61 50 46 37France 34 36 33 38Germany 42 37 24 42Greece 14 43 23 70Italy 29 30 20 51Latvia 36 49 34 46Luxembourg 55 41 35 51Netherlands 64 45 37 33Poland 69 52 46 44Slovakia 26 48 34 46Slovenia 35 53 39 35Spain 32 45 33 44Sweden 79 35 36 43Switzerland 47 42 34 35United Kingdom 43 48 33 37European average 41 43 34 43 International comparator countriesAustralia 51 49 35 42Canada 60 56 39 47Israel 58 44 60 55Japan 7 11 19 44USA 64 54 33 34


TABLE F - IMPACT: SECTORS (EARLY STAGE ENTREPRENEURS)

Extractive Transformative Business Consumer High or medium sectors sectors service sectors service sectors technology sectors only % % % % %

Ireland 5 22 27 46 11.4 European comparator countriesBosnia and Herzegovina 20 26 15 39 4.4Bulgaria 15 30 11 44 4.1Croatia 21 26 22 31 4.8Cyprus 0 15 19 66 2.1Estonia 6 27 28 39 7.0France 7 22 28 43 11.5Germany 3 14 29 53 8.1Greece 4 24 17 55 4.2Italy 17 23 30 30 8.3Latvia 12 34 22 33 5.4Luxembourg 1 22 35 41 11.2Netherlands 5 17 36 42 13.0Poland 1 30 17 52 4.8Slovakia 2 24 29 45 7.6Slovenia 6 24 38 31 16.1Spain 3 17 27 52 9.1Sweden 10 16 37 38 11.3Switzerland 4 16 28 52 2.4United Kingdom 1 25 42 32 10.6European average 7 23 27 43 7.9 International comparator countriesAustralia 3 24 34 39 13.1Canada 4 12 41 42 9.9Israel 1 11 33 55 14.3Japan 7 17 35 41 8.2USA 5 18 36 41 9.6


TABLE G - IMPACT: JOBS & JOBS GROWTH ASPIRATIONS (EARLY STAGE ENTREPRENEURS)

Early stage 5 year jobs growth 5 year jobs growth entrepeneurs with any expectations expectations jobs now or any jobs (10 or more jobs (20+ jobs) expected in 5 years within 5 years and jobs growth of at least 50%) % % %

Ireland 66 21 12 European comparator countriesBosnia and Herzegovina 48 2 0Bulgaria 65 9 8Croatia 77 19 10Cyprus 87 5 2Estonia 75 23 10France 82 27 13Germany 70 19 13Greece 85 6 3Italy 73 11 6Latvia 82 23 11Luxembourg 56 14 7Netherlands 64 10 7Poland 70 10 7Slovakia 68 18 10Slovenia 69 14 8Spain 58 7 5Sweden 51 5 3Switzerland 81 21 11United Kingdom 68 17 13European average 70 14 8 International comparator countriesAustralia 77 21 12Canada 64 16 14Israel 75 8 5Japan 60 24 18USA 81 29 18


TABLE H - IMPACT: INTERNATIONAL ORIENTATION (EARLY STAGE ENTREPRENEURS)

No revenues 1-24% of 25-75% of 76-100% of from customers revenue from revenue from revenue from outside country customers customers customers outside country outside country outside country % % % %

Ireland 28 45 13 14 European comparator countriesBosnia and Herzegovina 22 52 17 9Bulgaria 63 26 7 4Croatia 19 29 33 18Cyprus 39 36 14 11Estonia 51 28 9 12France 32 44 13 10Germany 46 35 17 2Greece 22 48 20 10Italy 55 31 8 6Latvia 36 37 17 10Luxembourg 18 31 32 19Netherlands 57 34 4 6Poland 63 32 4 2Slovakia 38 43 12 6Slovenia 25 32 18 25Spain 75 16 6 3Sweden 44 33 17 6Switzerland 13 63 13 12United Kingdom 46 40 9 6European average 40 37 14 9 International comparator countriesAustralia 34 58 4 4Canada 23 40 25 12Israel 42 27 12 19Japan 47 33 12 9USA 14 70 10 6


TABLE I - IMPACT: INNOVATIVENESS (EARLY STAGE ENTREPRENEURS) Product/service Product/service Product/service Many businesses Few businesses No businesses Business Business uses Business uses the is new to none is new to some is new to all of offer the same offer the same offer the same uses no new new technology very latest technology of our customers of our customers our customers product/service product/service product/service technology (available 1-5 years) (available less than 1 year) % % % % % % % % %

Ireland 46 37 17 36 46 18 67 19 15 European comparator countriesBosnia and Herzegovina 81 17 1 57 39 5 54 15 31Bulgaria 83 8 9 69 30 1 31 45 24Croatia 72 14 14 51 41 8 44 35 22Cyprus 45 32 24 49 42 10 45 20 35Estonia 53 35 12 51 37 12 67 19 14France 27 40 33 39 44 17 42 28 31Germany 64 24 13 57 33 10 75 14 11Greece 65 32 4 51 46 3 54 30 16Italy 36 33 32 63 33 4 63 28 9Latvia 56 38 6 50 44 6 83 11 5Luxembourg 24 60 16 33 53 14 56 24 20Netherlands 65 20 15 52 40 8 77 15 8Poland 74 19 6 72 25 3 84 13 3Slovakia 50 34 15 58 33 8 54 22 24Slovenia 50 30 20 50 34 16 62 21 17Spain 66 21 13 54 35 11 68 20 12Sweden 59 35 6 49 40 11 76 17 6Switzerland 60 27 13 54 38 8 69 21 10United Kingdom 61 24 15 48 38 14 73 18 9European average 57 29 14 52 39 9 International comparator countriesAustralia 61 27 12 49 36 15 78 13 9Canada 34 48 18 44 48 9 55 29 16Israel 45 36 19 67 27 6 65 26 9Japan 54 31 15 63 33 4 57 29 13USA 54 30 15 41 46 13 70 19 11


TABLE J - WHEN TO START? AGE OF EARLY STAGE ENTREPRENEURS Age 18-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64 Age 18-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64 (YOUTH) (SENIOR) (YOUTH) (SENIOR)

% % % % % % % % %

Ireland 6.6 10.4 10.3 7.7 7.7 9 31 28 18 14 European comparator countriesBosnia and Herzegovina 5.5 6.6 4.9 1.8 1.5 20 36 26 10 8Bulgaria 3.3 4.5 5.2 2.8 2.5 12 26 31 16 15Croatia 10.7 12.8 11.5 7.1 3.4 16 31 27 19 8Cyprus 3.1 10.5 11.6 6.2 3.6 6 34 32 19 9Estonia 24.6 25.3 23.5 16.1 8.7 15 31 27 18 9France 1.6 5.0 4.4 3.9 4.0 6 26 24 23 22Germany 3.4 7.7 6.5 5.0 3.4 7 30 24 24 15Greece 5.7 6.2 7.6 2.0 1.7 19 31 35 8 6Italy 3.9 5.8 5.3 4.4 1.9 10 25 29 27 9Latvia 19.7 19.6 17.3 13.4 2.6 15 33 27 21 4Luxembourg 11.7 11.0 10.5 7.4 4.9 17 28 27 19 9Netherlands 11.2 15.0 12.7 6.5 5.4 16 30 27 16 12Poland 3.7 18.7 9.2 6.7 2.5 5 50 24 14 6Slovakia 1.6 8.5 16.7 14.5 13.1 2 16 35 25 23Slovenia 7.6 10.9 9.1 5.0 2.3 12 32 31 17 7Spain 4.9 8.3 7.8 5.9 3.0 8 25 33 23 10Sweden 8.0 8.2 7.9 7.8 4.5 16 26 23 24 12Switzerland 3.0 10.4 11.9 9.3 5.0 5 26 31 27 11United Kingdom 6.8 11.6 8.6 9.0 5.0 12 31 22 25 11European average 7.3 10.9 10.1 7.1 4.3 11 30 28 20 11 International comparator countriesAustralia 7.6 13.9 16.5 11.9 9.3 10 27 29 20 14Canada 17.2 29.5 21.5 17.5 8.1 13 31 24 23 9Israel 7.5 14.8 14.5 13.5 12.5 11 28 26 19 16Japan 3.9 4.3 6.4 4.0 4.2 10 17 33 20 19USA 11.4 17.4 16.4 14.2 7.6 13 27 25 24 11

RATES BY AGE GROUP PERCENTAGE OF ALL ENTREPRENEURS


TABLE K - WHO STARTS? EDUCATION LEVELS OF EARLY STAGE ENTREPRENEURS

Some Secondary Post- Graduate Early stage secondary school secondary education entrepreneurs with education completed post secondary education

% % % % %

Ireland 7.5 6.4 9.1 14.6 71 European comparator countriesBosnia and Herzegovina 1.6 4.4 8.2 n/a 26Bulgaria n/a 3.2 5.6 5.7 45Croatia 8.4 8.6 10.8 12.3 22Cyprus 1.4 2.7 9.9 9.2 86Estonia 11.4 18.0 25.7 18.3 50France 2.1 0.9 3.2 7.6 88Germany 2.9 4.3 8.9 n/a 54Greece 3.2 5.5 7.2 n/a 53Italy 3.1 4.6 n/a 6.4 25Latvia 7.2 12.2 20.4 14.6 50Luxembourg 5.8 5.5 10.0 15.7 67Netherlands 8.9 9.4 10.9 12.9 33Poland 4.6 8.1 9.7 n/a 27Slovakia 6.8 11.0 15.2 19.3 39Slovenia 5.4 5.9 7.4 15.5 51Spain 3.0 6.0 8.0 14.2 50Sweden 8.4 5.4 9.0 7.8 60Switzerland 3.3 5.5 12.7 12.4 64United Kingdom 6.4 7.7 8.5 12.6 61European average 5.3 6.7 10.5 12.4 51 International comparator countriesAustralia 10.0 7.5 13.9 15.7 74Canada 9.0 11.3 19.7 30.1 86Israel 13.2 8.4 14.4 15.3 79Japan 6.7 3.8 5.2 3.6 63USA 1.4 7.7 15.6 16.8 87

RATES BY EDUCATION ATTAINMENT PERCENTAGE OF ALL ENTREPRENEURS


TABLE L - WHY START A NEW BUSINESS? MOTIVES PRIMARY MOTIVATION Motivated Motivated Motives To increase To be Multiple No better alternative by opportunity by necessity not given my income independent mixed (necessity) or to motives maintain my income % % % % % % % Ireland 77 21 3 33 21 20 27 European comparator countriesBosnia and Herzegovina 69 28 3 23 12 33 33Bulgaria 73 27 0 11 18 38 34Croatia 63 35 2 24 18 11 47Cyprus 70 29 1 33 14 20 32Estonia 76 19 6 27 27 23 23France 78 21 2 28 34 9 29Germany 79 11 10 23 43 8 25Greece 80 20 0 19 18 34 29Italy 75 14 11 33 7 42 18Latvia 72 23 5 26 24 24 27Luxembourg 80 14 6 21 38 25 16Netherlands 84 7 9 42 38 10 10Poland 90 9 1 28 40 21 11Slovakia 61 35 4 19 31 12 39Slovenia 74 20 6 29 22 19 29Spain 68 28 3 24 25 17 34Sweden 77 8 16 33 20 37 10Switzerland 79 14 7 25 48 6 21United Kingdom 82 14 4 38 25 16 20European average 75 20 5 27 26 21 26 International comparator countriesAustralia 82 17 1 26 38 7 29Canada 79 17 4 27 29 23 21Israel 76 16 8 19 17 45 20Japan 80 16 5 35 20 23 23USA 86 11 3 42 36 4 17


TABLE M - GENDER: ENTREPRENEURIAL ACTIVITY

EARLY STAGE ENTREPRENEURS OWNER-MANAGERS OF ESTABLISHED BUSINESSES

Rate for Rate for Rate as a ratio Rate for Rate for Rate as a ratio men women Men:Women men women Men:Women % % % %

Ireland 11.7 6.3 1.9 : 1 6.6 2.2 3.0 : 1 European comparator countriesBosnia and Herzegovina 5.2 2.7 1.9 : 1 2.0 0.8 2.7 : 1Bulgaria 4.4 3.0 1.4 : 1 7.5 5.4 1.4 : 1Croatia 11.5 6.4 1.8 : 1 6.6 2.3 2.9 : 1Cyprus 8.9 5.8 1.5 : 1 11.5 6.2 1.9 : 1Estonia 24.5 14.4 1.7 : 1 15.2 7.7 2.0 : 1France 5.5 2.4 2.3 : 1 5.6 1.6 3.4 : 1Germany 6.6 3.9 1.7 : 1 8.0 4.0 2.0 : 1Greece 5.8 3.9 1.5 : 1 16.7 8.2 2.0 : 1Italy 6.2 2.4 2.6 : 1 9.3 2.6 3.6 : 1Latvia 17.4 11.0 1.6 : 1 10.4 5.1 2.1 : 1Luxembourg 11.6 6.4 1.8 : 1 3.7 2.8 1.3 : 1Netherlands 10.5 9.4 1.1 : 1 12.4 4.9 2.5 : 1Poland 10.0 7.7 1.3 : 1 12.7 6.8 1.9 : 1Slovakia 13.8 9.8 1.4 : 1 13.5 6.5 2.1 : 1Slovenia 9.3 4.3 2.2 : 1 9.5 4.0 2.4 : 1Spain 6.8 5.6 1.2 : 1 8.4 5.7 1.5 : 1Sweden 8.8 5.7 1.5 : 1 5.6 2.7 2.1 : 1Switzerland 11.1 5.8 1.9 : 1 14.7 6.3 2.3 : 1United Kingdom 11.5 5.3 2.2 : 1 8.8 4.6 1.9 : 1European average 10.0 6.1 1.7 : 1 9.4 4.5 2.2 : 1 International comparator countriesAustralia 15.3 9.2 1.7 : 1 11.7 6.4 1.8 : 1Canada 22.6 15.0 1.5 : 1 7.8 4.6 1.7 : 1Israel 14.8 10.7 1.4 : 1 4.0 2.7 1.5 : 1Japan 6.5 2.8 2.3 : 1 9.0 3.6 2.5 : 1USA 16.7 10.7 1.6 : 1 8.9 6.6 1.3 : 1


TABLE N - GENDER: PERCEPTIONS OF OPPORTUNITIES AND SKILLS (GENERAL POPULATION)

Opportunities Opportunities Skills & Knowledge Skills & Knowledge Role models: know a Role models: know a Fear of failure Fear of failure in local area in local area to start-up to start-up recent entrepreneur recent entrepreneur prevent start-up prevent start-up % male adults % female adults % male adults % female adults % male adults % female adults % male adults % female adults Ireland 48 41 52 33 35 25 36 43 European comparator countriesBosnia and Herzegovina 16 11 44 28 36 27 33 36Bulgaria 20 18 45 32 39 32 39 49Croatia 37 30 59 43 38 27 29 45Cyprus 52 50 54 39 39 36 54 55Estonia 62 60 56 43 51 42 31 42France 37 31 44 29 38 28 35 42Germany 48 35 44 31 26 22 37 47Greece 15 13 50 37 26 19 67 74Italy 33 25 37 24 26 15 48 55Latvia 36 37 54 45 35 33 41 51Luxembourg 61 48 51 31 38 32 49 53Netherlands 69 59 51 38 40 34 28 37Poland 68 70 51 53 46 46 44 43Slovakia 29 23 55 41 34 34 42 50Slovenia 37 32 59 47 44 34 30 40Spain 36 28 47 43 35 31 41 47Sweden 81 77 44 26 39 34 40 47Switzerland 54 39 53 31 39 29 30 41United Kingdom 46 40 58 39 36 30 34 41European average 44 38 50 37 37 31 39 47 International comparator countriesAustralia 54 49 57 41 37 33 37 47Canada 63 57 63 48 45 34 42 52Israel 59 58 44 44 62 59 56 54Japan 7 8 17 5 23 15 44 44USA 69 59 62 46 36 30 32 37


TABLE O - OWNER-MANAGERS OF ESTABLISHED BUSINESSES

Owner-managers Age 18-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64 % of adults % % % % %

Ireland 4.4 0 9 27 27 37 European comparator countriesBosnia and Herzegovina 1.4 2 6 34 34 24Bulgaria 6.5 2 16 36 29 16Croatia 4.4 5 27 24 25 19Cyprus 8.9 3 19 21 31 26Estonia 11.4 3 16 26 29 26France 3.6 2 17 29 33 18Germany 6.1 2 7 19 42 29Greece 12.4 11 33 33 15 7Italy 6.0 2 18 40 26 14Latvia 7.7 2 20 31 26 20Luxembourg 3.3 6 4 39 28 23Netherlands 8.6 5 10 29 39 18Poland 9.8 0 15 40 27 18Slovakia 10.0 1 7 27 36 31Slovenia 6.8 2 12 37 35 14Spain 7.1 2 4 24 40 31Sweden 4.2 3 8 20 23 46Switzerland 10.5 1 5 31 31 32United Kingdom 6.7 4 10 28 35 24European average 7.0 3 13 30 30 24 International comparator countriesAustralia 9.0 2 9 23 34 32Canada 6.2 5 11 21 31 33Israel 3.3 1 13 31 29 25Japan 6.3 2 8 31 32 26USA 7.8 2 12 27 31 28


TABLE P - IMPACT: SECTOR, GROWTH EXPECTATIONS, INTERNATIONAL ORIENTATIONS (OWNER-MANAGERS OF ESTABLISHED BUSINESSES)

Extractive Transformative Business Consumer High or medium 5 year jobs growth No revenues 1-24% of revenue 25-75% of revenue 75-100% of revenue sectors sectors service service technology expectations from customers from customers from customers from customers sectors sectors sectors only (10 or more jobs outside country outside country outside country outside country within 5 years and jobs growth of at least 50%) % % % % % % % % %

Ireland 18 19 28 35 6 6 29 51 14 7 European comparator countriesBosnia and Herzegovina 3 15 9 73 0 4 13 62 17 7Bulgaria 13 30 5 52 1 2 77 21 2 0Croatia 22 31 14 33 5 11 18 42 29 12Cyprus 1 23 12 64 3 2 35 38 15 13Estonia 12 32 26 30 6 5 52 28 11 9France 18 24 27 31 13 2 35 57 7 2Germany 4 22 33 41 9 2 49 41 6 4Greece 6 25 16 52 5 1 40 45 6 8Italy 10 24 36 30 13 6 48 43 7 3Latvia 16 29 22 34 10 7 49 30 12 10Luxembourg 6 20 55 20 20 1 14 49 24 13Netherlands 10 26 30 34 13 2 59 33 6 2Poland 9 36 21 34 6 3 64 28 4 3Slovakia 3 24 31 42 9 7 43 39 11 7Slovenia 10 23 34 32 16 6 29 49 10 11Spain 14 25 24 37 10 1 73 20 4 3Sweden 11 23 45 21 21 3 62 27 9 1Switzerland 9 26 29 35 16 5 15 58 22 5United Kingdom 5 30 36 29 9 6 49 41 8 2European average 10 25 27 38 9 4 43 40 11 6 International comparator countriesAustralia 10 28 37 26 11 7 27 64 5 5Canada 7 24 42 28 8 9 26 45 18 11Israel 0 8 44 48 22 1 38 48 10 3Japan 6 25 32 37 11 4 67 29 3 1USA 5 30 39 26 11 6 19 68 8 6

SECTOR INTERNATIONAL ORIENTATIONTECHNOLOGY SECTORS

JOBS GROWTH

GLOBAL ENTREPRENEURSHIP MONITOR72

TABLE Q - INFORMAL INVESTORS: RATES AND AMOUNTS

Informal Total invested investors in past 3 years % of adults Euros Ireland 4.1 25,500 European comparator countriesBosnia and Herzegovina 2.6 2,800Bulgaria 2.6 29,600Croatia 4.6 31,400Cyprus 5.5 14,800Estonia 9.4 10,600France 3.0 44,000Germany 4.7 39,700Greece 3.2 29,100Italy 2.2 37,100Latvia 6.0 13,400Luxembourg 7.4 50,300Netherlands 3.8 12,800Poland 4.2 15,600Slovakia 7.7 17,300Slovenia 4.8 10,000Spain 3.2 22,200Sweden 7.8 10,200Switzerland 6.2 61,800United Kingdom 3.0 27,400European average 4.8 25,300 International comparator countriesAustralia 4.6 37,800Canada 9.4 27,200Israel 7.8 28,900Japan 2.5 50,800USA 6.7 17,800

GEM GLOBAL RESULTS


GLOBAL ENTREPRENEURSHIP MONITOR

TOTAL EARLY-STAGE ENTREPRENEURIAL ACTIVITY IN 54 ECONOMIES, GROUPED BY PHASE OF ECONOMIC DEVELOPMENT, GEM 2017

74

Total early-stage entrepreneurial activity in 54 economies, grouped by phase of economic development, GEM 2017

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SURVEY OF ENTREPRENEURSHIP IN IRELAND 2017

ENTREPRENEURIAL ACTIVITY BY COUNTRY PERCENTAGE OF POPULATION AGED 18-64

Region Country Nascent New business Early stage Established Intrapreneurship entrepreneurship ownership entrepreneurial business rate rate rate activity (TEA) ownership rate

EUROPE % % % % % Bosnia and Herzegovina 2.5 1.4 4.0 1.4 0.5 Bulgaria 1.8 2.0 3.7 6.5 0.5 Croatia 6.1 2.9 8.9 4.4 4.8 Cyprus 3.6 3.8 7.3 8.9 1.8 Estonia 13.4 6.2 19.4 11.4 9.1 France 2.9 1.1 3.9 3.6 3.9 Germany 3.4 2.0 5.3 6.1 5.7 Greece 2.3 2.6 4.8 12.4 0.9 Ireland 5.8 3.3 8.9 4.4 5.5 Italy 2.7 1.7 4.3 6.0 2.4 Latvia 9.4 5.1 14.2 7.7 4.4 Luxembourg 6.7 2.6 9.1 3.3 8.0 Netherlands 4.7 5.4 9.9 8.6 7.6 Poland 6.7 2.2 8.9 9.8 3.2 Slovakia 8.2 3.8 11.8 10.0 2.6 Slovenia 4.0 3.0 6.9 6.8 6.0 Spain 2.8 3.5 6.2 7.1 1.4 Sweden 5.3 2.1 7.3 4.2 6.2 Switzerland 4.7 3.9 8.5 10.5 4.8 United Kingdom 4.4 4.2 8.4 6.7 8.0

75

GLOBAL ENTREPRENEURSHIP MONITOR


NORTH AMERICA % % % % % Canada 11.3 8.1 18.8 6.2 8.2 USA 9.4 4.6 13.6 7.8 7.6 LATIN AMERICA & CARIBBEAN % % % % Argentina 3.9 2.1 6.0 6.7 0.6 Brazil 4.4 16.3 20.3 16.5 0.7 Chile 14.7 9.7 23.8 9.9 4.5 Colombia 10.8 8.1 18.7 8.7 1.8 Ecuador 21.2 9.8 29.6 15.4 0.5 Guatemala 13.8 11.7 24.8 12.3 1.3 Mexico 10.6 3.6 14.1 1.4 1.0 Panama 10.1 6.4 16.2 4.7 0.2 Peru 18.7 6.5 24.6 7.4 0.9 Puerto Rico 9.5 1.4 10.6 1.6 2.6 Uruguay 10.7 4.3 14.7 6.4 3.5 AFRICA % % % % Egypt 6.5 7.0 13.3 5.7 2.2 Madagascar 10.9 11.2 21.8 29.4 0.6 Morocco 4.2 4.6 8.8 10.4 0.5 South Africa 7.5 3.8 11.0 2.2 0.5

76

SURVEY OF ENTREPRENEURSHIP IN IRELAND 2017


ASIA & OCEANIA % % % % % Australia 6.4 5.9 12.2 9.0 7.8 China 3.7 6.4 9.9 6.8 1.4 India 4.9 4.6 9.3 6.2 0.2 Indonesia 3.6 3.9 7.5 10.4 1.8 Iran 6.8 6.9 13.3 10.6 1.2 Israel 8.4 5.1 12.8 3.3 8.6 Japan 3.2 1.6 4.7 6.3 2.8 Kazakhstan 8.0 3.8 11.3 2.4 4.1 Korea 6.2 6.9 13.0 11.4 1.9 Lebanon 8.6 16.0 24.1 33.2 1.4 Malaysia 15.4 6.6 21.6 3.8 1.4 Qatar 4.7 2.8 7.4 1.3 2.5 Saudi Arabia 4.8 6.9 11.5 3.2 2.4 Taiwan 3.6 5.0 8.6 12.1 8.1 Thailand 10.6 12.1 21.6 15.2 4.5 United Arab Emirates 4.0 5.1 9.0 5.6 1.7 Vietnam 2.5 20.8 23.3 24.7 0.6

77

METHODOLOGY AND DEFINITIONS



METHODOLOGY AND DEFINITIONS

ADULT POPULATION SURVEYThe GEM model is primarily based on an adult population survey (APS). Professional survey research firms in each country administer the adult population survey, which are based on a random sample of approximately 2,000 adults.

The main questions in the APS are identical in each country. For the purposes of the research, GEM uses a very comprehensive definition of entrepreneurship, which encompasses any type of entrepreneurial initiative, including self-employment.

Sampling procedures vary somewhat, but all of the survey firms are able to provide samples that are, when properly weighted, representative of the adult population in each country in terms of key demographics and geographical coverage. In Ireland the survey is confined to those aged 18 to 64 inclusive.

Telephone interviews are utilised in Ireland, as in most of the developed countries. In Ireland a random telephone survey was carried out in June 2017, involving calls to both landlines and mobile phones. As GEM concentrates on the entrepreneurs themselves rather than their businesses the respondents are interviewed at home rather than in their workplace.

The manner of the running of APS across all countries is coordinated by Global Entrepreneurship Research Association (GERA) based in Babson College, USA. GERA also combines the outputs from the individual country surveys to produce a master dataset. The analysis and interpretation of this data at national level is the responsibility of the national team.

THE GLOBAL ENTREPRENEURSHIP MONITORThe aim of GEM is to consider why some countries are more “entrepreneurial” than others. GEM began in 1999 as a joint project between Babson College (USA) and London Business School (UK). 18 years on, GEM is the richest resource of information on the subject, publishing a range of global, national and “special topic” reports on an annual basis (www.gemconsortium.org).

In numbers, GEM is:• 200,000+ interviews a year• 100+ countries• 500+ specialists in entrepreneurship research• 300+ academic and research institutions• 200+ funding institutions

In each economy, GEM looks at two elements:• The entrepreneurial behaviour and attitudes of individuals• The national context and how that impacts entrepreneurship

The annual GEM research cycle involves an adult population survey and a key informant survey.


in respect of the new business. Many of these people are still in fulltime employment. The rate is for those in the adult population aged 18-64 years inclusive.

New business owners are entrepreneurs who at least part own and manage a new business that is between 4 and 42 months old and have not paid salaries for longer than this period. These new ventures are in the first 42 months after the new venture has been set up. The rate is for those in the adult population aged 18-64 years inclusive.

Total early stage entrepreneurial activity rate (TEA rate) refers to the total rate of early stage entrepreneurial activity among the adult population aged 18-64 years inclusive. In some instances, this rate is less than the combined percentages for nascent and new business owners. This is because, in circumstances where respondents qualify as both a nascent and a new business owner, they are counted only once.

Owner-managers of established businesses are those that have set up businesses that they have continued to own and manage and which has paid wages or salaries for more than 42 months. The rate is for those in the adult population aged 18-64 years inclusive.

Intrapreneurs (entrepreneurial employee activities) are employees that develop new products/services, or set up a new business entity, for their employer. It does not include, for example, work on optimising internal operations of a firm. The rate is for those in the adult population aged 18-64 years inclusive.

KEY INFORMANT SURVEYKey informants are experts and entrepreneurs. In each country at least 25% of the key informants are entrepreneurs, though in Ireland, over half of all key informants are entrepreneurs.

Expert informants are chosen by reputation and referrals to represent the nine entrepreneurial framework dimensions in the GEM model. These are Finance, Government Policies, Government Programmes, Education and Training, R&D Transfer, Commercial Infrastructure, Internal Market Openness, Physical Infrastructure and Culture and Social Norms.

The key informants are asked to complete a detailed questionnaire. The questionnaire used is identical in all countries involved in the survey. The questionnaire is similar to the adult population survey and also includes an additional range of topics relating to the entrepreneurial framework conditions, the entrepreneurial capacity and opportunity recognition perceptiveness of the adult population, as well as other socio-demographic items.

GEM DEFINITIONSAspiring entrepreneurs are those who expect to start a business in the next three years. The rate is for those in the adult population aged 18-64 years inclusive.

Nascent entrepreneurs are those actively planning a new venture. These entrepreneurs have done something during the previous twelve months to help start a new business, that he or she will at least part own. Activities such as organising the start-up team, looking for equipment, saving money for the start-up, or writing a business plan would all be considered as active commitments to starting a business. Wages or salaries will not have been paid for more than three months


THE ENTREPRENEURSHIP PROCESS GEM describes entrepreneurial activity as a process and measures different phases of this process from conception through firm birth to persistence. This is described graphically as follows.

Source: Adapted from Global Entrepreneurship Monitor 2017/18 Global Report

Discontinuation of Business

Owner-Manager of an Established Business (more than 3.5 years old)

Potential Entrepreneur:Opportunities, Knowledge and Skills, Role Models

Conception Firm BirthEarly-stage Entrepreneurship Profile

Individual attributes> Gender> Age> Motivation (opportunity, necessity)

Impact> Growth> Innovation> Internationalization

Industry> Sector

Persistence

Nascent Entrepreneur: Involved in Setting Up a Business

New Business Owner:Owner-Manager of a New Business (up to 3.5 years old)

TOTAL EARLY STAGE ENTREPRENEURIAL ACTIVITY (TEA)

Documents

ENTREPRENEURSHIP IN IRELAND 2017€¦ · Economic Forum, World Bank, and the Organisation for Economic Co-operation and Development. The sponsorship of Enterprise Ireland, with the