hunter centre for strathclyde Global Entrepreneurship Monitor Scotland 2001 Dr Laura Galloway Dr Jonathan Levie

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?

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

GEM2001 Methodology Standardised Cross-national Data: 31 nations Representative Sample: 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

Measuring Entrepreneurial Activity 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)

GEM2001 Scotland Summary Highlights 1.TEA rate similar to 2000; at the low end of the range for small modern nations. 2.Low rates of informal investment prevail. 3.Entrepreneurship rates, new business types, attitudes, sources of funding are different for males and females. 4.Link between educational attainment and entrepreneurship rates, attitudes and growth prospects. 5.No entrepreneurship “hotspots” in Scotland.

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

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

Female entrepreneurship Male and female entrepreneurship are different Type of business

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

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

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

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

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

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

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

Reasons for low rate areas? Low rates of entrepreneurship among males in PA, KA postcode areas

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