Upload
ashlynn-mcbride
View
212
Download
0
Embed Size (px)
Citation preview
Global Entrepreneurship Monitor Scotland 2006
Jonathan LevieHunter Centre for Entrepreneurship
University of Strathclyde
14 December 2007
Early-stage Entrepreneurial Activity:How Scotland Compares
2005 TEA scores for 42 sovereign nations & Scotland
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Be
lgiu
mJ
ap
an
Sw
ed
enIt
aly
UA
ES
co
tla
nd
Ge
rman
yF
ran
ce
Slo
ve
nia
Sin
ga
po
reR
us
sia
Fin
lan
dM
ex
ico
S.
Afr
ica
De
nm
ark
Ne
the
rla
nd
UK
Hu
ng
ary
Tu
rke
yL
atv
iaC
an
ada
Sp
ain
Ire
lan
dC
zec
hG
ree
ce
Cro
ati
aN
orw
ay
Ch
ile
US
AA
rge
nti
na
Ind
iaM
ala
ys
iaIc
ela
nd
Bra
zil
Au
str
alia
Uru
gu
ay
Th
aila
nd
Ch
ina
Ind
on
esi
aJ
am
aic
aP
hil
ipp
ine
sC
olo
mb
iaP
eru
% o
f p
op
ula
tio
n a
ged
18-
64
Scotland United Kingdom
United States
Ireland
TEA rates in Scotland & benchmark countries
TEA
% change
Scottish TEA as a % of other TEA rates
2005 2006 2005 2006
Scotland 5.8 4.2 - 28% n/a n/a
UK 6.0 5.8 - 4% 97% 72%
High income nations 6.6 6.2 - 6% 87% 67%
Small high income nations 7.2 6.7 - 7% 80% 62%
Have you ever taken part in business or enterprise training at school?
0
10
20
30
40
50
60
18-24yrs 25-34yrs 35-44yrs
Age group
% t
aken
par
t SC doersSC thinkersSC avoidersUK doersUK thinkersUK avoiders
Source: GEM UK and Scotland 2004, 2005 and 2006 Surveys
In the UK, would most people consider starting a new business a desirable career choice?
0
10
20
30
40
50
60
70
80
18-24 25-34 35-44 45-54 55-64 65-80
Age group
% y
es
SC doersSC thinkersSC avoidersUK doersUK thinkersUK avoiders
Source: GEM UK and Scotland 2004, 2005 and 2006 Surveys
In the next 6 months will there be good opportunities for starting a business in the area where you live?
0
10
20
30
40
50
60
70
18-24 25-34 35-44 45-54 55-64 65-80
Age group
% a
gre
e
SC doersSC thinkersSC avoidersUK doersUK thinkersUK avoiders
Source: GEM UK and Scotland 2004, 2005 and 2006 Surveys
Would fear of failure prevent you from starting a business?
0
10
20
30
40
50
18-24 25-34 35-44 45-54 55-64 65-80
Age group
% a
gre
e
SC doersSC thinkersSC avoidersUK doersUK thinkersUK avoiders
Source: GEM UK and Scotland 2004, 2005 and 2006 Surveys
Do you have the knowledge, skill and experience required to start a new business?
0102030405060708090
100
18-24 25-34 35-44 45-54 55-64 65-80
Age group
% y
es
SC doersSC thinkersSC avoidersUK doersUK thinkersUK avoiders
Source: GEM UK and Scotland 2004, 2005 and 2006 Surveys
How many businesses fail in their first year?UK public estimates
0
10
20
30
40
Around5%
Around10%
Around aquarter
Aroundhalf
Aroundthree
quarters
Nearly all(9/10)
Per
cen
t o
f s
amp
le
Not entrepreneurially engaged %
Entrepreneurially engaged %
Source: Allinson, Braidford, Houston & Stone, 2005
% of new VAT-registered businesses still registered after one year and three years
0102030405060708090
100
95 96 97 98 99 00 01 02 03 04Year of registration for VAT
% s
till
reg
iste
red
Scotland(oneyear)
UK (one year)
Scotland(three years)
UK (three years)
Source: BERR
Most important reason for closing my business (excludes businesses that were sold)
0%10%20%30%40%50%60%70%80%90%
100%
UK (743 cases)
Scotland (39 cases)
% o
f to
tal
Personal reasons
Retirement
Found another job
Financial reasons
Lack of customers
Too muchcompetition
Source: GEMUK 2006 survey
% of those who closed a business in the last yearwho are currently starting or running a business
Reason for closure UK Scotland
Found another job 11
8Retirement 8
Personal reasons 16
Too much competition 33
40Lack of customers 27
Financial reasons 23
Entrepreneurial recycling is healthy in Scotland – Scotland does not have a business failure problem – or a business closure problem
What if we shattered the business failure rate myth?
• 11% of 18-64 years old Scots are thinkers and 2% are actively trying to start (nascent entrepreneurs)
•Fear of failure is a barrier to start-up for 42% of thinkers but only 18% of nascents
•55% of thinkers who fear failure feel much more positive about their business prospects when told the true business failure rate (Allinson et al., 2005)
•Combining these findings, if all thinkers knew how small the business failure rate is, we could
increase the number of nascents by 25%
•Fear of failure is holding the start-up process back, and affecting the next generation of entrepreneurs. •Our bankruptcy laws now provide the swiftest discharge time in Europe. •But few entrepreneurs go bankrupt anyway.
Now what?
A concerted public education campaign, aimed at thinkers, the media and the new business support industry, to shatter the business failure rate myth
Implications for Policy