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(Global Entrepreneurship Monitor)

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1 (Global Entrepreneurship Monitor)
ALBERTA GEM Alberta Report 2016 (Global Entrepreneurship Monitor) Cooper Langford, Faculty Professor, University of Calgary Peter Josty Executive Director, The Centre for Innovation Studies (THECIS) - wth support from: Chad Saunders, Haskayne School of Business

2 ALBERTA What is GEM? World’s largest study of entrepreneurship.
2016 was 18th year 52 countries in 2016 Canada: National and Alberta, Ontario, Quebec Interviews with individuals (APS) and experts ( PES). Covers 90% of global economy. Unique: focus on individual, international benchmarks.

3 GEM’s definition of entrepreneurship:
ALBERTA GEM’s definition of entrepreneurship: “Any attempt at new business or venture creation, such as self-employment, a new business organization, or the expansion of an existing business, by an individual, a team of individuals or an established business.”

4 ALBERTA In Canada THECIS launched return to GEM in 2013, (Canada was absent 2003 – 2012) Detailed Alberta report presented today. APS’ ATTITUDES, ACTIVITY, ASPIRATIONS PES’ Expert appraisal of the ‘Framework’ conditions.

5 Does Alberta have a strong
First Concern: Does Alberta have a strong CULTURE OF ENTREPRENEURSHIP? Is the general population entrepreneurship oriented? Is entrepreneurial activity at a desirable level?

6 Attitudes ALBERTA A Clearly - strong public attitudes!
(~ 60% say it is a good career choice.) Expert top rating: Cultural, social norms. Is confidence in opportunity slipping?

7 ALBERTA Activity The nascent entrepreneurship rate, the percentage of the adult population who are currently engaged in setting up a business that has not paid salary, wages or other payments to owners for more than three months. The new business ownership rate, percentage of the adult population who are currently owner-managers of new businesses that have paid wages, salaries or any other payments to owners for more than three months but not more than 42 months. The combination of these two (counting each individual only once) yields an overall indicator, ‘TEA’, the total early stage activity, or entrepreneurship rate (covers 3.5 years).

8 International Activity
ALBERTA A International Activity

9 ALBERTA Activity TEA % adult population 16.7 20.3 13.3 13.4 2.4 6.8
TEAmale TEAfem TEAopp TEAnec Est Bus Canada 2016 16.7 20.3 13.3 13.4 2.4 6.8 Alberta 2016 17.3 19 15.5 13.1 2.8 7.-

10 and the concept of Employee Entrepreneurs (EEA)
ALBERTA Activity and the concept of Employee Entrepreneurs (EEA) The EEA survey items are based on questions that ask about a leading role in development of new activities for a principle employer over the last three years. Is the AB result a product of the structure of the economy OR… a problem

11 ALBERTA BUT: There is the quality concern:
The level of SU activity in Alberta is about as high as could be achieved, while EEA deserves attention. BUT: There is the quality concern: Is the activity productive? (jobs, growth, innovation, sustainability) We’ll try 1st to judge from the aspirations and innovation orientation of these entrepreneurs.

12 Aspirations ALBERTA AB QC ON BC TEA 10% 12% 14% EB 1.7% 2.4% 1.4%
Percent of the TEA Entrepreneurs High growth (> 19 jobs) in 5 years AB QC ON BC TEA 10% 12% 14% EB 1.7% 2.4% 1.4% At least 10 employees and > 50 % bus. growth in 5 yrs. Note: only 12% report no jobs in 5 yr Job creation ambitions

13 ALBERTA Entrepreneurs in the Economy MARKETS AND TECNOLOGY
Market Innovation AB QC ON BC New to all or some customers 58% 67% 37% 49% Up-to-date technology?

14 ALBERTA Entrepreneurs in the Economy SECTORS
This has changed fover last few years!

15 ALBERTA Export Orientation

16 ALBERTA Quality of entrepreneurship can be a function of personal characteristics. Who are the Alberta Entrepreneurs?

17 ALBERTA Entrepreneur Demographics AGE Rate for Each age group
AB >65 ~3% Shares in each age group - If “young” is defined as <40 – AB Majority are YOUNG

18 Special 2016 Questions about the Perception of Older Entrepreneurs
ALBERTA Special 2016 Questions about the Perception of Older Entrepreneurs

19 ALBERTA Entrepreneur Demographics EDUCATION
TEA rate in each educational Cohort (%) An AB advantage?

20 ALBERTA Entrepreneur Demographics GENDER AB attitudes % Know ent
Opporrt Su skil Ffail Male 45.9 50.2 70.9 42.4 Female 38.6 42.5 49.8 43

21 PES – Expert Appraisal of the Alberta “Framework”
Finance has moved from >5 to <5 in the last year.

22 ALBERTA RECOMMENDATIONS
Government programs to support entrepreneurship that promises new directions. This involves all departments of government. School systems need to promote entrepreneurial thinking as part of encouraging independence and creativity. Despite the strength of women’s entrepreneurship in AB, data imply that women have lower confidence in skill and more complex motivations. Programs and mentorship for women remain a priority. Especially, support areas beyond consumer services. Given increase in a senior population living in better health, consider targeting programs for older entrepreneurs. Education for entrepreneurial thinking should be promoted across all post- secondary programs. Data show rate of entrepreneurship rises with increase of education. G o v e r n m e n t p r o g r a m s t o s u p p o r t e n t r e p r e n e u r s h i p t h a t p r o m i s e s n e w d i r e c t i o n s . T h i s i n v o l v e s a l l d e p e r t m e n t s o f g o v e r n m e n t . S c h o o l s y s t e m s n e e d t o p r o m o t e e n t r e p r n e u r i a l t h i n k i n g a s p a r t o f e n c o u r a g i n g i n d e p e n d e n c e a n d c r e a t i v i t y . D e s p i t e t h e s t r e n g t h o f w m e n ’ s e n t r e p r e n e u r s h i p i n A B , d a t a i m p l y t h a t w o m e n h a v e l o w e r c o n f i d e n c e i n s k i l l a n d m o r e c o m p l e x m o t i v a t i o n s . P r o g r a m s a n d m e n t o r s h i p f o r w o m e n r e m a i n a p r i o r i t y . E s p e c i a l l y , s u p p o r t a r e a s b e y o n d c o n s u m e r s e r v i c e s . E d u c a t i o n f o r e n t r e p r e n e u r i a l t h i n k i n g s h o u l d b e p r o m o t e d a c r o s s a l l p o s t - s e c o n d a r y p r o g r a m s . D a t a s h o w r a t e o f e n t r e p r e n e u r s h i p r i s e s w i t h i n c r e a s e o f e d u c a t i o n .

23 Thanks to our sponsors. ALBERTA Ontario Futurpreneur Canada
Innovation, Science, and Economic Development Canada The Government of Ontario Futurpreneur Canada

24 The GEM Alberta 2016 report is available on-line at
and

25 Peter Josty p.josty@thecis.ca
ALBERTA Thank you. Cooper Langford Peter Josty

26

27 ALBERTA A REPRESENTATIVE ALBERTA EARLY STAGE ENTREPRENEUR
Relatively young,… Well educated…. Female In business services or consumer services Source: Franchise INDIA


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