A Positive and Modern View of Entrepreneurship

.

Mike Herrington

About Mike Herrington

Mike Herrington is Executive Director of the Global Entrepreneurship Monitor (GEM) which is part of the Global Entrepreneurship Research Association (GERA), University of Cape Town. He was involved with a number of companies as General Manager in southern Africa and New Zealand.In 2001, he joined the Graduate School of Business School and founded the Centre for Innovation & Entrepreneurship. Mike obtained an MBA from Cape Town University and a PhD from London. In 2014 he was involved in teaching MBA students specialising in New Venture Planning and Entrepreneurship as well as teaching in Customised Academic Learning and Executive Education Programmes.

Across 62 economies around the world, more than two-thirds of the adult population believe that entrepreneurs are well-regarded and enjoy high status within their societies. At the same time, Europe has the lowest belief in entrepreneurship as a good career choice — 58 per cent. Positive perceptions about entrepreneurship as a career choice range from 40 percent among the Finns and Swiss, to 78 per cent for the Netherlands.

In the ten researched countries across emerging Europe — Bulgaria, Croatia, Estonia, Georgia, Hungary, Latvia, Macedonia, Poland, Slovakia and Slovenia — positive perceptions about entrepreneurship as a good career choice is close to the European average. That opinion is shared by 71.4 per cent of Georgians, 64.8 per cent of Macedonians, 62.2 per cent of Croats and 61.9 per cent of Poles. The research also shows that entrepreneurs enjoy high status in Georgia, Hungary and Slovenia.

Interestingly, Georgia tops both categories: entrepreneurs enjoy a high status and entrepreneurship is seen as a good career choice. One possible explanation for this is that over 71 per cent of adults believe that entrepreneurship is a good career choice and almost 80 per cent attribute high status to entrepreneurship. In addition, their fear of failure is relatively low compared to other similar countries

Currently, the central indicator of the Global Entrepreneurship Monitor is the total, early-stage entrepreneurial activity (TEA) rate, which measures the percentage of the adult population (aged 18 to 64 years) that are in the process of, or who have just started, a business. Less than 40 percent of Europeans see any entrepreneurial opportunities and less than half of them believe they have the skills to pursue them.

Self-perceptions related to entrepreneurship are also interesting. Every other Estonian sees opportunities to start a business. Highly perceived opportunities are also seen in Poland, Macedonia, Latvia and Hungary (more than 30 per cent). Which nationality considers they are most capable of running a business? 60 per cent of Poles, 54.5 per cent of Macedonians and 50 per cent of Croats.

Bulgarians seem to be least self-confident but it is the Poles, Hungarians and Estonians who are most undeterred by the fear of failure. Surprisingly enough, every fifth Pole expresses entrepreneurial intentions and Macedonians are even more decisive — 24.9 per cent of them want to set up a firm, whereas only eight per cent of Slovaks would do the same. Entrepreneurial intentions are relatively low among them, which could be attributed to a lack of accessible finance, a high regulatory environment and a relative lack of access to open markets.

Europe reports the lowest involvement of women in early-stage entrepreneurial activity at just six percent. The Old Continent also demonstrates the lowest gender parity—women in this region are only half as likely to be engaged in TEA as their male counterparts. This is despite the fact that, regionally, women from Europe are more likely to start businesses out of necessity as compared to men.

Amongst the ten emerging Europe countries included in the research, Bulgaria has the highest female/male TEA ratio of 0.80, followed by Poland and Slovakia. Bulgaria also has the highest female/male opportunity ratio of 1.05, which means that women are given more opportunities to start a business then men. The situation is similar in Estonia (1.02) and the lowest ratio is in Macedonia (0.40).

What should governments do to increase entrepreneurship? The answer differs depending on the country, as each country is different. However, the most common factors that influence entrepreneurial behaviour are the high costs of doing business and onerous regulatory conditions attributed to “red tape”. Labour laws in many countries hinder entrepreneurial activity because of labour unions, restrictive hiring and firing procedures. There is a lack of ready access to finance caused by a combination of banks being reluctant to lend money and the inability of entrepreneurs to put together a workable and viable business plan.

RELATED ARTICLES

A Bosnian Referendum Shows Russia’s Influence in the Balkans—As Well As Its Limits

Falling into Old Ways in 2017? Ukraine’s Struggle for Functioning Economic Institutions

United or Divided? Europe in the Face of the Challenges of Tomorrow

The Sharing Economy Could Bring New Business Models to CEE

The Global Outsourcing Industry — the Rise of the Phoenix

Europe at Odds over OPAL and Nord Stream 2

Measuring Growth of Societies with GDP Alone Shows an Incomplete Picture

Changing Perspectives and Showing That True Romania is a Vibrant Innovative Country

The Right to Water: Who Can Change Today’s Situation?

Central and Eastern European Consumers Are Joining the Global Trends for Change

The Competitive Edge in Central and Eastern Europe

SOFIA BULGARIA - MAY 5: View of the Ivan Vazov National Theatre in Sofia on May 5 2016. Sofia is the largest city and capital of Bulgaria.

Prepare for a New Europe

After 25 Years of Restructuring, the Romanian Power Sector Is at a Crossroad

The Capital Markets Union: a New Beginning in the European Financial Sector?

Business Moving Forward with Cautious Optimism — Can Investors Win the Confidence Game?

The CEE Region Is Making Advances in Prioritising Waste-to-Energy Projects

Poland’s Unicorn, Slovakia’s Flying Car and the Future of Europe

Let’s Stop Wasting Time Redefining our Place in Europe

The Morawiecki Plan Promises a Brighter Future for Poland

Breaking With Imitations of the Past

The EU’s Benign Neglect Of Eastern Europe

Not All Quiet on the Eastern Front

CEE — Do We Need a Launch Pad For Our On-Site Tech Intelligence in the Silicon Valley

Resignation in Ukraine: War, Revolution, Crisis — Some Things Never Change

Where’s My Cheese? – The GREAT British Food Tour 2014

Cheese Shop

The EU’s Choice: Fundamental Reform Or Disintegration

International Women’s Day — Let’s Take Action And Then Celebrate

Big Fish, Small Fish, Where to Fish? On the Eve of the Fourth Industrial Revolution

Poland: Is it Ready, and is it Time to Adopt the Euro?

Polish Tax Laws — Fighting a Winning Battle Against Tax Evaders

Outsourcing in Germany: Stop Talking at and Start Talking to

Brexit: Let’s Learn the Lesson and Hope a Better Europe Will Arise

We, the Post-Communist Generation, Have the Skills to Rid of the Past And Create Our Own Future

Fiscal Policy Predictability in CEE — It’s Time for Change

Finalising the DCFTA is Expected to Bring Multiple Benefits to Ukraine

LGBT in CEE — A New Acceptance Is Being Born From Migration

People Power Reminds the Government of the Rule of Law

Will a Two-speed European Union Side-line the Visegrad Four?

Europe Needs To Be More Proactive In Embracing Armenia

History as Destiny? Institutional Erosion in Ukraine and Poland

A New Division Between Eastern And Western Europe?

Global Expansion in the Digital Age

How Will Poland Approach the Brexit Negotiations?

Are Labour Shortages Driving Economic Growth?

Czech Republic Renaming Has Real Economic Costs

European Volatility Makes Economic Development Slower for Ukraine

China: A Giant That Is Hard to Crack

Romania Surviving the Waves of Recent Political Tsunamis in Europe

Are There Differences Between How Tax Regulations in Poland and IAS Treat Intangible Assets?

Poland’s Confusing GDP Growth

Will the New Five-day Visa-free Regime Encourage More Visitors to Belarus?

Examining How a Strong Swiss Franc Could Single-Handedly Topple Poland’s Economy

The Long Tail of Global Expansion

Could the West At Least Help Ukraine To Insure FDI Against Political Risks?

The Netherlands’ Objection to the Ukraine-EU Association Agreement could be Costly to Europe

Ukraine’s Reputation for Cheap Labour May Not Ring True in the Long-term

January Kicks Off an Exciting Year for Emerging Europe

Belarus 2020: Turning the Vicious Circle Into an Upward Spiral

The GREAT London Food Scene

Bakery in London

The Voice of European Business Must Be Heard Loud and Clear by Brexit Negotiators

Old Fashioned Skulduggery Overshadows the Elections in Moldova

Leave a Reply

Your email address will not be published. Required fields are marked *