1. Amway European Entrepreneurship Report 2011 Next generation of entrepreneurs A survey of Amway Europe, November 2011

2. EUROPEAN ENTREPRENEURSHIP As an international company working with more than 500.000 independent business owners across Europe we wanted to take a closer look and find out more about people’s attitudes towards entrepreneurship. For the second year consecutive we conducted a survey in 12 European countries and interviewed more than 13.500 people. The Amway European Entrepreneurship Report 2011 is published on the occasion of the Global Entrepreneurship Week. The results show: There is a high entrepreneurship potential in Europe – especially when it comes to younger people. Do they represent the next generation of entrepreneurs? Michael Meissner, Vice President Corporate Affairs Amway Europe

3. EUROPEAN ENTREPRENEURSHIP There is high potential for self-employment in Europe. However, the Amway European Entrepreneurship Report shows that many Europeans fear starting up their own business, because they do not feel well prepared, neither in terms of their economic knowledge nor in terms of their personal skills. As a consequence, entrepreneurial potential is insufficiently exploited in Europe and economic opportunities are wasted. Therefore, entrepreneurial skills and initiative must be promoted – supported by public authorities. Andy Goldstein, Executive Director of the LMU Entrepreneurship Center, der Munich, Germany

4. SURVEY DESIGN More than 13.500 respondents across Europe were interviewed on the subject of self-employment. The survey’s results are representative of the selected countries’ populations. Fieldwork:August 15 th until September 30 th 2011 Sample:13.606 women and men aged 14 and over Countries:Austria, Denmark, France, Germany, Great Britain, Italy, Poland, Russia, Spain, Switzerland, Turkey, Ukraine Method: Face-to-face/telephone interviews Institute:GfK Nuremberg, Germany

5. KEY FINDINGS

6. European’s positive about entrepreneurship Self-employment enjoys a positive reputation throughout Europe. On average, 72% of people questioned in twelve European countries show a positive attitude towards self-employment. This represents an increase of three percent compared to last year. Comparing the twelve participating countries of the survey, attitude towards self-employment is most positive in Denmark (88%), followed by Great Britain (72%) and France (76%). Turkey (65%) and Germany (61%) show the lowest approval ratings. Attitude towards entrepreneurship quickens pace especially in Austria: Compared to last year, 13% more people showed positive attitude towards entrepreneurship (Ukraine +6%, Germany +5%). In Great-Britain (-8%), Switzerland (-5%), France (-3%) and Russia (-2%) attitude towards entrepreneurship is cooling down. All other countries remain on previous year’s level.

7. Entrepreneurship potential remains stable Regarding the potential of self-employment in Europe, on average more than one third of the European respondents (39%) can imagine starting up their own business. Regardless the current economic problems of many European countries and the financial crisis this potential remains on a constant level compared to 2010 (+/- 0%). Taking a closer look at the polled countries, entrepreneurship potential in Switzerland ranks first (51%), followed by Turkey (50%) and Italy (42%). Ukrainians (35%), Russians (32%) and Germans (27%) show the lowest interest to start their own business. Compared to last year, Austria and Denmark have the highest increase in terms of entrepreneurship potential (both +6%); Turkey (-9%), Italy (-6%), France and Russia (both -5%) the highest decrease. Current self-employment rates are highest in Switzerland (14%), Italy (13%) and Turkey (12%), lowest in France and Russia (both 4%) *. K no data for Great Britain available

8. Next generation of entrepreneurs: Teens and Tweens In Europe, entrepreneurial spirit is especially widespread among 14-29 year-old respondents: 80% of those say their general attitude towards self- employment is positive (average all age groups: 72%). Every second respondent in the age group 14-29 years (50%) can imagine starting up his or her own business (average all age groups: 39%). Especially in the following countries, teens and tweens feel positive about entrepreneurship: Denmark (92%), Great Britain (89%), Austria and Switzerland (both 85%), Italy (84%) and France (83%). Compared to last year, 15% more young people showed positive attitude towards entrepreneurship in Austria, 12% more in Switzerland (Great Britain and Italy: +4%). In France young people’s attitude towards entrepreneurship is cooling down (France: -8%), all other countries remain on previous year’s level.

9. Independence and self-fulfillment are the most appealing aspects of self-employment It is not all about the money: The most important reasons for Europeans of all ages to start their own business are “independence from an employer” (46%) and “self-fulfillment, possibility to realize own ideas” (38%). “Second income prospects” (28%) only rank third. Nearly every fourth European (24%) states that “better compatibility of family, leisure time and career” is a reason to start up an own business. This aspect is especially appealing to respondents in Austria (36%), Denmark and Switzerland (both 32%). In Russia only 13% of the polled people feel that compatibility of family, leisure time and career is a reason to start up an own business.

10. Missing knowledge and skills cool down entrepreneurial enthusiasm Many Europeans are afraid to start their own business because they think they miss the economic background. 44% of the Europeans stated that they were afraid because of the lack of economic knowledge. Particularly Russians (55%), Germans (48%), Polish and Spanish (both 46%) complain about lacking economic knowledge. In addition to that nearly every third person (32%) has doubts about his or her personal skills and knowledge and does not feel well prepared for self- employment. A comparison of the participating countries shows that people in France (47%) and Germany (41%) feel most insufficiently prepared for self-employment.

11. Europeans claim for more entrepreneurial information and education On average 75% of the polled individuals agree that education is very important for entrepreneurial activities. 65% of the questioned Europeans reply that there should be more public education programs for business starters. There is no nation that rates its education and training for self-employed as good as Austria (58%) and Switzerland (52%). On the contrary, countries like Italy (43%) and Spain (42%) complain about the existing offers in their countries. 46% of the European respondents think that they are not well-informed about education opportunities for self-employed. This is especially true for Germany (58%), Spain (55%) and France (53%). Best informed: Turkey (43%), Switzerland (38%) and Austria (32%).

12. Europeans perceive self-employment as family- friendly 79% of the polled Europeans agree that compatibility of career and family are important. Austrians (87%) Swiss and Turks (84%) feel the strongest need to combine family and career. For 51% of the polled participants family friendly employment means “family-friendly working hours”, for example no meetings in the evening or weekend. Self-employment is perceived as a family-friendly working model: To 42% of respondents with children self-employment is a possible job alternative, compared to 37% of families without children.

13. RESULTS

14. Self-employment enjoys a very good reputation in Europe. Throughout all of the countries 72% show a positive attitude towards self-employment. Attitude towards entrepreneurship is most favorable in Denmark, Great Britain and France, whereas Turkey and Germany show the lowest approval ratings. Question 1: What is your general attitude towards self-employment? Which of the following statements do you agree with?

15. There is big start-up potential in Europe: On average more than one third of the European respondents (39%) can imagine starting up their own business. The entrepreneurial spirit is especially widespread in Switzerland and Turkey. On the other hand Germans have got the lowest desire to start their own business. Question 1: What is your general attitude towards self-employment? Which of the following statements do you agree with?

16. 14-29 year-old respondents mark a new generation of entrepreneurs. On average 80% of those entering the workforce say their general attitude towards self-employment is positive. Every second under the age of 30 can imagine starting up their own business. Question 1: What is your general attitude towards self-employment? Which of the following statements do you agree with? Respondents aged 14-29 years Data in percent

17. Question 2: In your opinion, which of the following aspects appeal to you as reasons to start up your own business?* Better compatibility of family, leisure time and career Second income prospects Self-fulfillment, possibility to realize own ideas Independence from an employer, being my own boss Return to job market, alternative to unemployment None of the above Austria36344758194 Denmark32467267357 France241637461815 Germany253245551920 Great Britain231432451214 Italy23243743173 Poland253936471913 Russia132818261228 Spain19183145189 Switzerland321948581711 Turkey2427 401316 Ukraine10342616825 * Multiple answers possible; Data in percent

18. Question 3: How do you assess the importance of education and further training, e.g. provided by schools or universities as well as private educational institutions, for work as a self-employed? Which of the following statements do you agree with? Data in percent 3.1. Education and further training opportunities are important for self-employed activities I completely agree I don´t agree at all Austria54291314 Denmark58211254 France41272354 Germany46331733 Great Britain45232543 Italy38302453 Poland38302263 Russia43311754 Spain44301862 Switzerland59231422 Turkey26551621 Ukraine45311762

19. Question 3: How do you assess the importance of education and further training, e.g. provided by schools or universities as well as private educational institutions, for work as a self-employed? Which of the following statements do you agree with? Data in percent 3.2. With my personal skills and knowledge, I feel well prepared for self-employment I completely agree I don´t agree at all Austria2226231316 Denmark2019281320 France1615221829 Germany1320271724 Great Britain2216271519 Italy1419301622 Poland1120301822 Russia26 231113 Spain2122231321 Switzerland31242610 Turkey183823166 Ukraine262923139

20. Question 3: How do you assess the importance of education and further training, e.g. provided by schools or universities as well as private educational institutions, for work as a self-employed? Which of the following statements do you agree with? Data in percent 3.3. The offer in the field of education and training for self-employed in this country is good I completely agree I don´t agree at all Austria17383365 Denmark11165697 France914392216 Germany72352136 Great Britain915511312 Italy613392419 Poland616462012 Russia1523321812 Spain517361824 Switzerland25273774 Turkey124133113 Ukraine1021312414

21. Question 3: How do you assess the importance of education and further training, e.g. provided by schools or universities as well as private educational institutions, for work as a self-employed? Which of the following statements do you agree with? Data in percent 3.4. There should be more public education programs for business starters I completely agree I don´t agree at all Austria30342935 Denmark34223265 France3626 84 Germany24343553 Great Britain40242853 Italy38312532 Poland35312654 Russia35 2352 Spain46282043 Switzerland26283188 Turkey05204926 Ukraine38352151

22. Question 3: How do you assess the importance of education and further training, e.g. provided by schools or universities as well as private educational institutions, for work as a self-employed? Which of the following statements do you agree with? Data in percent 3.5. I am afraid to start a business, because I lack the necessary economic knowledge I completely agree I don´t agree at all Austria2420221419 Denmark2416231423 France2517221026 Germany2919271214 Great Britain1814281426 Italy2123281613 Poland2620301114 Russia29262411 Spain2620251119 Switzerland1520231626 Turkey123727194 Ukraine202634137

23. Question 3: How do you assess the importance of education and further training, e.g. provided by schools or universities as well as private educational institutions, for work as a self-employed? Which of the following statements do you agree with? Data in percent 3.6. I feel well-informed about the opportunities of further education for self-employed I completely agree I don´t agree at all Austria1022271427 Denmark1312301729 France1012252231 Germany51225 33 Great Britain1512321624 Italy815311927 Poland811322425 Russia817241932 Spain916201936 Switzerland1920311615 Turkey83625238 Ukraine718312618

24. Question 4: How important is the compatibility of career and family to you? Data in percent Very important Not important at all Austria6423922 Denmark65161136 France58221722 Germany43321835 Great Britain55152056 Italy43252633 Poland48291724 Russia32332349 Spain65181331 Switzerland59251223 Turkey31531411 Ukraine32411962

25. Question 5: What does “family-friendly employment” mean for you personally? To me, family-friendly employment means... part time work models possibility if working in home office /telecommuti ng performance- related pay childcare offers family-friendly working hours short-term exemption from work long-term exemption from work None of the above Austria474052576357351 Denmark70 37537177614 France213423334743306 Germany543742576864363 Great Britain18271216542317 Italy23 2916561693 Poland212829355123288 Russia2114182835151020 Spain192516 6421155 Switzerland453725415544316 Turkey3125191725201617 Ukraine20162023289515 *Multiple answers possible, Data in percent

26. About Amway Amway is one of the leading direct selling companies worldwide. Founded in 1959 in Ada (Michigan) Amway operates in more than 50 countries generating a revenue of 9.2 billion USD in 2010. The product portfolio of Amway encompasses around 450 different products. Most of them are in the areas of cosmetics, wellness and household. These products are distributed through more than 500.000 independent Amway Business Owners in Europe. www.amway-europe.com

27. Contact Amway GmbH Michael Meissner Vice President Corporate Affairs Europe Benzstraße 11 b–c 82178 Puchheim Germany Tel.: +49 89 800 94 104 michael.meissner@amway.com Amway GmbH Julia Lutter-Müller Corporate Affairs Manager Benzstraße 11 b–c 82178 Puchheim Germany Tel.: +49 89 800 94 158 julia.lutter@amway.com