hunter centre for entrepreneurship @ strathclyde

1. hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland2001 Dr Laura Galloway Dr Jonathan Levie

2. Global Entrepreneurship Monitor • RESEARCH QUESTIONS • Does the level of entrepreneurial activity vary between countries? By how much? • Does the level of entrepreneurial activity affect economic growth? • What makes a country entrepreneurial?

3. GEM Scotland • AIMS • How Scotland compares to the UK and other small modern nations • Which factors account for Scotland's level of entrepreneurial activity • What are the implications for public policy

4. Standardised Cross-national Data: 31 nations Representative Sample: 2000+ adults per nation Key Informant Sample: 36 experts per nation 9 Entrepreneurial Framework Conditions: 1.Financial Support 5.R&D Transfer 2.Gov. Policy 6.Comm. Infrastructure 3.Gov. Programmes 7.Barriers to Entry 4.Education, Training 8.Physical Infrastructure 9.Cultural & Social Norms GEM2001 Methodology

5. 1. % of adults actively starting a business (nascent entrepreneurship rate) + 2. % of adults running a new business (owner/managers of businesses < 3½ yrs old) = Total Entrepreneurial Activity (TEA) Measuring Entrepreneurial Activity

6. GEM2001 Scotland • Summary Highlights • TEA rate similar to 2000; at the low end of the range for small modern nations. • Low rates of informal investment prevail. • Entrepreneurship rates, new business types, attitudes, sources of funding are different for males and females. • Link between educational attainment and entrepreneurship rates, attitudes and growth prospects. • No entrepreneurship “hotspots” in Scotland.

7. 1. How Scotland Compares Total Entrepreneurial Activity (% of working age adults) TEA band Nation Australia, Brazil, Korea, Mexico, New Zealand High (15-20) Argentina, Canada, Finland, Hungary, India, Ireland, Italy, Poland, South Africa, United States Med (10-14) Low (5-9) Belgium, Denmark, France, Germany, Israel, Japan, Netherlands, Norway, Portugal, Russia,SCOTLAND, Singapore, Spain, Sweden, United Kingdom, Wales

8. 2. Female entrepreneurship Female entrepreneurship is half that of males Females’ attitudes to entrepreneurship are more negative

9. Male and female entrepreneurship are different Female entrepreneurship Type of business

10. Female entrepreneurship Male and female entrepreneurship are different Expected sources of funding % of nascent entrepreneurs mentioning this source

11. 3. Education and Entrepreneurship TEA Rates by education and gender Education enhances TEA rates for both males and females

12. Education and Attitudes Fear of failure would prevent me from starting a business Fear of failure reduced by education

13. Education and Attitudes I have the skills necessary to start a business Perception of skills enhanced by education

14. Graduate Entrepreneurship Rates Gender TEA rate differences persist for graduates Gender-based differences in business type also persist

15. % of nascent entrepreneurs More graduate entrepreneurs aim to create jobs for others than remain sole traders Postgraduates aim to create greater numbers of jobs

16. 4. Entrepreneurship and Location West Central Scotland (Inverclyde, Renfrewshire, Argyll, Ayrshire) have lower TEA scores than other parts of Scotland

18. Policy Implications • Networking remains an issue in Scotland • Low rates of informal investment • Need for widening and deepening of programmes for: - Enterprise education - Information for entrepreneurship - Entrepreneurship among graduates - Female entrepreneurship