hunter centre for entrepreneurship @ strathclyde

1. hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland2002 Jonathan Levie Wendy Brown Laura Galloway

2. Global Entrepreneurship Monitor • RESEARCH QUESTIONS • How does the level of entrepreneurial activity vary between countries? • Does the level of entrepreneurial activity affect economic growth? • What makes a country entrepreneurial? • What policies might enhance entrepreneurial activity?

3. GEM Scotland 2002 AIMS • Measure differences in entrepreneurial activity between 37 participating GEM sovereign nations & Scotland • Identify factors that account for Scotland's level of entrepreneurial activity • Suggest implications for public policy

4. Standardised Cross-national Data: 37 nations 62% of world population 92% of world GDP Representative Sample: >2000 adults per nation Key Informant Sample: > 30 experts interviewed per nation GEM2002 Methodology

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

6. Summary Highlights Scottish TEA rate : 4.6% GEM 37 nation average TEA rate : 12% • Scottish Female TEA rate now same as UK Female TEA rate • Scottish Male and Female TEA rates are not significantly different • Young male TEA rates have declined • Opportunity perception rate among young male Scots has increased

7. Summary Highlights contd. • Low rates of informal investment for the 3rd year running • High potential entrepreneurship rate is low because overall entrepreneurship rate is low (the issue is quantity not just quality) • Non-white immigrants are more entrepreneurial than other groups • Scotland & Ireland Demographic and policy differences account for gap in entrepreneurship rates

8. How Scotland Compares 25.00 20.00 15.00 TEA Score (% of adults 18-64) [95% Confidence Interval] Norway New Zealand Israel Denmark 10.00 Finland Ireland 5.00 United Kingdom Scotland - Italy India Brazil Korea Chile Spain Israel China Japan U.S.A. Ireland Mexico Finland France Poland Croatia Russia Iceland Norway Canada Hungary Thailand Belgium Sweden Denmark Germany Australia Slovenia Argentina SCOTLAND Singapore Hong Kong Switzerland Netherlands South Africa New Zealand Chinese Taipei United Kingdom Total Sample Country average TEA scores for 37 sovereign nations & Scotland

9. High Potential Entrepreneurship Percentage of entrepreneurs in sample who exhibited High Potential Entrepreneurship Percentage of individuals in sample who exhibited High Potential Entrepreneurship High Potential Entrepreneurship in Scotland is more an issue of quantity than quality

10. Immigrant/Ethnic Entrepreneurship UK GEM sample (aged 18-64 only) by origin and ethnic background Non-white immigrants have significantly higher entrepreneurial activity

11. Immigrant/Ethnic Entrepreneurship Scottish GEM sample (aged 18-64 only) Immigrants to Scotland have significantly higher entrepreneurial activity

12. Scotland and Ireland compared Six-year population growth rates and TEA rates of 36 GEM2002 nations A dynamic and youthful population has a positive effect on entrepreneurial activity

13. Policy & Programmes Review “Going For Growth” Jack McConnell’s October speech “A New Approach to Entrepreneurship” Scottish Enterprise, January Encouraging Innovative, High-Growth Starts Encouraging More People to Start Businesses Increasing the Contribution of Education to Entrepreneurship

14. Policy Implications • Encourage ‘growth of enterprise’ as well as enterprise growth • Education for enterprise focus correct • More quantity and quality support needed • Develop research-based policies that encourage informal (friends and family) investment • Develop research-based policies that encourage entrepreneurial immigrants