Entrepreneurs speak outEntrepreneurs speak out A call to action for G20 governments The Nice Côte d’Azur 2011 Entrepreneurship Barometer Produced for the G20 Young Entrepreneur

Growing Beyond

Entrepreneurs speak outA call to action for G20 governments

The Nice Côte d’Azur 2011 Entrepreneurship Barometer

Produced for the G20 Young Entrepreneur Summit, October 2011

Country digestArgentinaAustraliaBrazilCanadaChinaFranceGermanyIndiaIndonesiaItalyJapanMexicoRussiaSaudi ArabiaSouth AfricaSouth KoreaTurkey•United KingdomUnited StatesEuropean Union

ViewpointAyman Asfari Group Chief Executive, Petrofac Ltd, UK

Ayman Asfari joined Petrofac in 1991 to establish Petrofac International in the UK and the UAE. He was named Group Chief Executive in 2002 and

led a successful IPO in 2005. Today, Petrofac’s market cap is US$8b.

“The entrepreneurial culture in Britain has come a long way. Successful figures like Richard Branson and Alan Sugar and programs such as The Apprentice and Dragons’ Den have fostered a fascination with, and support for, entrepreneurship.But there is still more we can do.

“Mentoring is important. Everyone needs a little guidance sometimes. Who better to do this than successful entrepreneurs? Access to funding is also vital and there’s no doubt that this continues to be an issue in the current economic climate, as start-ups struggle to get the banks to finance their plans.

“Perhaps one way of addressing this would be to encourage special funding for enterprise from financial institutions. I would also like to see a tax system that encouraged people to take sensible risks, thereby creating value and employment.

“Entrepreneurs are driven to succeed. Creating a culture in which people are encouraged to take ownership of their own destiny is more difficult in a country where the society is accustomed to a Government funded safety net. The key is to continue to protect the vulnerable while removing the incentives for laziness or complacency.

“And while it is difficult to educate for entrepreneurship, achieving a good grounding in the key technical subjects, combined with a willingness to communicate effectively, is essential for success.”

TendencyWeighted score:

higher quartileWeighted score: lower quartile

++–––

+

Dete

riorated

Improved

The perception barometerThis study focuses on the entrepreneurship environment of G20 countries through the lens of five fundamental enablers: entrepreneurship culture; education and training; access to funding; regulation and taxation; and coordinated support.

Through these enablers, we explore the climate for entrepreneurs in the G20 countries and the likely direction things will take.

Our original approach is based on:

• Quantitative economic indicators• The opinions of entrepreneurs on the progress and impact of

specificenablers

Our perception barometer sums up progress as evaluated by more than 1,000 entrepreneurs during the last five years, using four score ranges.

The analysis of these indicators and opinions also highlights how entrepreneurs’ perceptions may differ from the latest economic figures; a divergence that may be due to cultural bias, derivative ideas or lack of information. Red tape can also present challenges when it comes to accessing sources of funding.

These gaps in perception raise a call to action for governments to tackle these specific issues.

1Entrepreneurs speak out The Nice Côte d’Azur 2011 Entrepreneurship Barometer | United Kingdom digest

Strengths• TheUKbenefitsfromastrongentrepreneurial

culture• The Government is committed to reducing the

regulatory burden on small businesses• Start-up costs for small businesses are low

Weaknesses• Support for long-term growth of SMEs is seen as

poorly coordinated• Bank lending and stock market activity for SMEs

is down

Opportunities• The Government could improve tax incentives for

business start-ups• UKentrepreneursfindingitdifficulttosecure

bankloanscanseekfinancingfrombusinessangel investors and venture capital

Threats• Weak lending conditions could persist, having

particularly negative effects on small business start-ups

• Poor coordination of support to entrepreneurs could continue to be a constraint

The Nice Côte d’Azur 2011 Entrepreneurship Barometer by Ernst & Young

Generalandspecificfactorsinfluencing the entrepreneurship environment

United Kingdom An auspicious environment with strong Government supportSmall and medium enterprises (SMEs) can take advantage of a very auspicious business environment in the United Kingdom. They account for 1.6 million entities, representing a 99.6% share of all enterprises. The Government provides strong support to the sector, which contributes to 55% of overall UK employment.1

Although the number of new businesses registered annually has declined since 2007, it has remained consistently and significantlyhigherthantheaveragesforG20andmaturemarketcountries. Furthermore, new business density — a measure of new registrations per 1,000 people aged 15–64 — is the highest out of any G20 country.2

Acknowledging this competitive advantage, in November 2010, the UK Government launched a new entrepreneur visa to attract people who want to start a business in the UK.

The culture of the UK is favorable to entrepreneurs, but access to funding is a continual challenge, particularly in the start-up phase, with bank lending constrained. Support for entrepreneurs could be better coordinated, but regulation is favorable, and there are no obstacles to entrepreneurship in terms of education and training.

New business registeredUnited Kingdom compared to G20 and mature market average

Source: World Bank. Data not available for US, China and Saudi Arabia.

1. Source: European Commission SBA Fact Sheet United Kingdom 2009.2. Excluding the United States, China, Saudi Arabia, for which data is not available on

this indicator.

0

100000

200000

300000

400000

500000

2005 2006 2007 2008 2009

United Kingdom Mature market average G20 average

2 Entrepreneurs speak out The Nice Côte d’Azur 2011 Entrepreneurship Barometer | United Kingdom digest

The vast majority of UK entrepreneurs are convinced the UK has a culture that encourages entrepreneurship.

Entrepreneurship culture Apositiveoutlook

76% 72%agreedthatthecultureoftheUKencourages entrepreneurship

ofrespondentsthoughtpromotingtheroleofentrepreneurs in creating new jobs has a high impact onentrepreneurshipculture

Half of the UK entrepreneurs said that entrepreneurs are regarded as providers of innovative products, which conveys a positive image. In addition, a further factor contributed to this favorable outlook over the last five years: popular TV shows like The Apprentice and Dragon’s Den have had a large positive impact on public

perceptions. Looking ahead, promoting the role of entrepreneurs in creating new jobs was seen as having a high impact on the entrepreneurship culture (72%). With the current increase in unemployment in the UK entrepreneurs have a key role to play.

The quality of research and innovation and overall levels of innovative activity are very good in the UK. As indicated by the number of R&D researchers per million of population, the UK shows higher investments than the mature market G20 countries. R&D expenditure is at a lower percentage of GDP than the G20 mature market average. Moreover, the number of scientific and technical journal articles published is slightly lower than the mature market average.

Doyouthinkthatthecultureofyourcountryencourages entrepreneurship?

Source: The Nice Côte d’Azur 2011 Entrepreneurship Barometer by Ernst & Young.

Agree76%

Disagree 24%

Mature markets: 72%Rapid-growth markets: 80%

3. G20 average based on the 17 countries for which data is available for 2007.4. G20 average based on the 13 countries for which data is available for 2007.

United Kingdom G20 average

Innovative environment 2007 Change 2005-07

2007 Change 2005-07

R&D expenditure (% of GDP) 2005-073 1.9 +0.15 p.p. 1.5 +0.14 p.p.

Scientificandtechnicaljournalarticles (number of publications) 47,121 +3.2% 31,376 +6%

Researchers in R&D (per million of population)4 4,269 +3.5% 2,340 +0.5%

Impactoverlastfiveyearsofkeyculturaldriversinimprovingtheperceptionof entrepreneurship


G20

United Kingdom

Japan

India

The positive corporate and social responsibility (CSR) image of entrepreneurship

The positive image of entrepreneurs in education

The positive image of entrepreneursin providing innovative products

The positive image of entrepreneurs in the media

The positive influenceof the direct environment

0

20

40

60

80

100

p.p.: percentage points


Education and training Noneedforspecifictraining

Over the last five years, entrepreneurs have seen improvements in entrepreneurship conferences and seminars. This education channel has improved faster in the UK than the mature market average.

Public spending on education and secondary school enrollment has risen. Public spending on education is higher than the average for mature market G20 countries. In particular, more than half of UK entrepreneurs saw improvement in specific programs at universities and business schools, in entrepreneurship conferences and seminars, showing a higher perception than the rest of the mature markets. The National Council for Graduate Entrepreneurship (NCGE), launched in 2004, is a good example. It brings together universities, private sector businesses and the regional agencies in projects to promote entrepreneurship to students and postgraduates. The NCGE has the aim of raising the profile of entrepreneurship and of highlighting the option of starting a business as a career choice among students and graduates.

Unlike the G20 average, less than 50% of respondents in the UK, US, Australia and Canada think that students need tofollowspecifictrainingtobecomeentrepreneurs.

60% 40%of respondents think that students do not needtofollowspecifictrainingtobecomeentrepreneurs

ofrespondentsseespecificprogramsatuniversitiesandbusinessschoolsasakeyprioritytoimprovestudentperception of entrepreneurship as a career option

5. G20 average based on 11 countries for which data is available 2005-08.

Doyouthinkthatstudentsneedtofollowspecifictraining to become entrepreneurs?


Yes

40%

No

60%Mature markets: 59%Rapid-growth markets: 80%

Source: The Nice Côte d’Azur 2011 Entrepreneurship Barometer by Ernst & Young

0

5

10

15

20

25

30

35

40

G20

United Kingdom

Mature markets

Coaching programsfor entrepreneurs

Dedicated entrepreneurshipchairs in universities andbusiness schools

Entrepreneurshipconferences and seminars

Specific programs at universitiesand business schools

Training period at school

Improvementsoverthelastfiveyearsinentrepreneurshipeducationandtraining

United Kingdom G20 average

2008 Change 2005-08

2008 Change 2005-08

Public spending on education, total (% of GDP) 2005-07 5.5 0 4.8 +0.3 p.p.

School enrolment, secondary (% gross) 82 +2.8 p.p. 95.9 +1.6 p.p.

School enrolment, tertiary (% gross) 57.4 -2 p.p. 53.5 +1 p.p.

Tertiary-type A and advanced research programs (Number of graduates)5 536,723 +8% n.a. 8%

n.a.: data not availablep.p.: percentage points


Seventy-two percent of UK entrepreneurs interviewed found it difficult for young entrepreneurs to access to funding, sharing this perception with entrepreneurs from other mature market G20 countries. They blame it partly on the economic downturn. Indeed, the credit contraction following the financial crisis has had a persistent negative impact on UK bank lending to SMEs. In response, the Government has introduced measures such as the Enterprise Finance Guarantee (EFG) scheme. This loan guarantee scheme aims to facilitate additional bank lending to viable SMEs with insufficient or no security for a normal commercial loan. However, lending has remained tight, a big source of concern as more than half of our respondents viewed bank loans as a high-impact funding instrument.

However, while the UK Government should continue to support bank lending for entrepreneurs, the latter may benefit from turning to other sources of funding for the start-up phase of enterprise development and onward.

Funding from venture capital (VC), for instance, has increased by 62% in terms of the sum of equity invested by VCs over the period 2005–10. Interestingly, entrepreneurs we talked to were evenly split on perceptions of whether access to VC funding has improved or deteriorated. This indicates that it is a funding instrument with strong potential to be better leveraged by UK entrepreneurs. Business angel investment is also important for the start-up phase, and twice as many thought it had improved as thought it had deteriorated — a positive sign for start-ups.

When UK start-ups want to expand at the later stages of development, they have great opportunity to do so on the London Stock Exchange’s Alternative Investment Market (AIM). However, overall activity in this market is down, with a 65% lower value of SME share trading reported in 2010 than five years earlier, and the number of deals has also decreased. The perception of entrepreneurs confirms this state of affairs, with 40% seeing access to funding from the stock market as having deteriorated compared with 22% seeing improvement.

United KingdomPerception barometer 2005–106

G20 averagePerception barometer 2005–102010 Change

2005–102010 Change

2005–10

Business angels (number of networks)7 48 +37% + n.a +48% +

Venture capital (US$m) 2,150 +62% - n.a +17% +

SME bank loans (% of GDP) n.a. n.a. - 14.1% n.a. +

Private equity (US$m) 32,832 -12% - n.a -22% +

SME stock markets (number of listed companies) 1195 -14.6% - n.a +32% +

IPOs in main stock market (number of deals) 18 -54% - n.a +12% +

IPOs in SMEs stock market (number of deals) 40 -75% n.a -33%

72% 84%

Accesstofundingappearstobeasignificantchallengeforyoungentrepreneurs in the United Kingdom.

Access to funding AbigchallengedespiteGovernmentmeasures

ofourrespondentsfindaccesstofundingforyoungentrepreneursdifficult

of entrepreneurs think the Government shouldfacilitateaccesstofundingforyoung entrepreneurs

Access to funding after the downturnVenture finance has recovered, while SME share trading remains depressed

Source: Thomson ONE; World Federation of Exchanges.

0,00

20,00

40,00

60,00

80,00

100,00

120,00

0

0,5

1

1,5

2

2,5

3

2005 2006 2007 2008 2009 2010

Amount of VC invested (billions of dollars, right scale)

Value of SME share trading (billions of dollars, left scale)

n.a.: data not available

6. The Nice Côte d’Azur 2011 Entrepreneurship Barometer by Ernst & Young.7. G20 average based on the seven countries for which data is available through European Business Angel Network.


Start-up costs in the UK are among the lowest of the G20 countries, as is the time it takes to start a business. The number of procedures required for a business start-up in the UK is around the average for mature market G20 countries, although the allotted time is higher. Entrepreneurs noticed no time reductions over the period, though they are low to start with. While more than half of respondents find the regulation efficient for starting up a new business, half of the interviewees report that this regulatory environment has deteriorated over the last five years.

Around half of the UK entrepreneurs we talked to told us the environment for innovation incentives has improved, and

the UK Government certainly has encouraged innovation through the Research and Development Tax Credit, launched in 2011, which provides financial support and incentives to companies carrying out R&D. However, the number of patents registered has been in steady decline in each of the past five years, which suggests innovation policy could be an area that needs greater focus for regulation. Indeed, two-thirds of UK entrepreneurs told us that encouraging innovation is a top priority for regulatory policy.

Less time is spent on tax issues than in other mature markets, with 110 hours per year compared with the mature market average of 197 hours per year in 2011

— although the trend shows a slight increase in the period under review. However, two-thirds of respondents thought there were not enough tax incentives for starting up a new business, and 82% viewed increased tax incentives as a measure that would have a high impact on long-term growth over the next three years.

United Kingdom G20 United Kingdom G20 average

Perception barometer 2005–10

2010 Change 2005–10

2010 Change 2005–10

Innovation incentives + + Tax subsidy rate for US$1 of R&D, SMEs — 20088 0.179 n.a. 0.148 n.a.

Tax incentives + + Start-up incentives (% of GDP) 2005–08 0 0 n.a n.a

Ease of starting a business

– + Number of procedures to start a business 6 0 7.7 -1.4

Time to start a business (days) 13 0 22.3 -18.1

Cost to start a business (% income per capita) 0.7 0 10.6 -9.8 p.p.

IP protection + + Number of patents 2005–079 22,465 -19.7% 126,375 +9.6%

Businessregulation – + Time spent on tax issues (hours per year) 110 5 367.1 -72.4

Labor market rigidity + + Cost of hiring 0.35 n.a. 0.3 n.a.

Notice period 5.3 n.a. 5 n.a.

Severance cost 2.6 n.a. 12.2 n.a.

n.a.: data not availablep.p.: percentage points

8. G20 average based on the 17 countries for which data is available for 2008.9.G20averagebasedon12countriesandEuropeanPatentOfficeforwhichdataisavailablein2005and2009.

Entrepreneurs in the UK face relatively few major regulatory obstacles when they want to start a business.

Regulation and taxation Lowstart-upcostsandefficientregulation

0.7% 110the cost of starting a business in the UK, as a percentage of per capita income, is the second lowestintheG20afterCanada

hours per year spent on tax issues intheUKmakesitthethirdlowestintheG20


Coordinated support Improved support but coordination on standby

Entrepreneurs’ clubs, associations and mentoring programs will have the highest impact in improving the entrepreneurship environment.

Improvement to the support provided to entrepreneurs by entrepreneurs’ clubs, associations and mentoring programs is undeniable in the UK, according to our respondents. These enablers are also perceived as the leading way to increase the level of help provided to entrepreneurs over the next three years. However, UK entrepreneurs told us that collaboration and coordination between different organizations has stagnated over the past

five years (44%), and that support for long-term growth is poorly coordinated (60%). In the meantime, several new initiatives launched in the last few months should contribute to support entrepreneurs. The Growth Review, launched in November 2010, calls on business and industry to challenge government departments on the measures they are taking to allow the private sector to flourish.

48% 60%ofrespondentshighlightthat youngentrepreneursbenefitfrom tailoredsupport

underlinethepoorcoordinationbetweenthe different support programs

Coordinated support — entrepreneurs’ perception of progress and future impact


Howwouldyouevaluatethecoordinationbetween governments, associations and education systems in your country?


Well coordinated 38%

Poorly coordinated

60%

Can't say 2% Mature markets: 41%

Rapid-growth markets: 51%

Chambers of commerce

Entrepreneurs’ clubs and associations

Government agencies Incubators Mentoring program

20.0

40.0

60.0

- 20.0 - 10.0 0 10.0 20.0 30.0

Impa

ct o

f nex

t thr

ee y

ears

Progress of last five years


Launch date Mainapplicationarea

Enterprise Investment Scheme (EIS) The EIS was introduced by the UK Government to encourage inward investment in SMEs. There are various tax reliefs available to potential investors, designed to encourage investment into these types of opportunities, which otherwise may struggle to secure funding.

1994 (regular follow-up amendments)

Access to funding

Entrepreneurs’ReliefforCapitalGainsTaxEntrepreneurs’ Relief reduces the amount of the Capital Gains Tax on the disposal of qualifying business assets on or after 6 April 2008, as long as you have met the qualifying conditions throughout a one-year qualifying period, either up to the date of disposal or the date the business ceased.

April 2008 (regular follow-up amendments)

Regulation and taxation

NewEnterpriseAllowance(NEA)The NEA provides extra help to unemployed people who want to start their own business. Participants get access to a volunteer business mentor who provides guidance and support as they develop their business plan and through the early months of trading. Once a customer can demonstrate they have a viable business proposition with the potential forgrowthinthefuture,theyareabletoaccessfinancialsupport.

January 2011 Access to funding, coordinated support, entrepreneurial culture

StartUp BritainStartUp Britain is a new campaign by entrepreneurs for entrepreneurs to support small businesses in the UK. The program is designed to celebrate, inspire and accelerate enterprise in the UK.

March 2011 Entrepreneurial culture

The Enterprise Finance Guarantee (EFG)TheEFGisaloanguaranteeschemeintendedtofacilitateadditionalbanklendingtoviableSMEswithinsufficientornosecurity with which to secure a normal commercial loan, with a Government-backed guarantee for 75% of the loan value. The EFG was launched in January 2009 to help viable SMEs obtain the working capital and investment that they needduringatimeofunprecedentedlytightenedcreditconditions.ItnowaimstohelpsuchSMEsseekingfinanceforinvestment and growth as the economy recovers.

January 2009 Access to funding

Innovation Launch Pad (ILP)The ILP invites SMEs to pitch their business proposals for products and services to deliver better value for money for government. It is part of the coalition Government’s ongoing commitment to increase its level of spend with SMEs. The Prime Minister strongly supports this entrepreneurial initiative, not only because it saves taxpayers money, but because it creates employment and inward investment in British SMEs.

2011 Coordinated support

The Growth ReviewThe Growth Review calls on business and industry to challenge government departments on the measures they are takingtoallowtheprivatesectortoflourish.TheGrowthReviewhasfocusedonhowtohelptheprivatesectortorecover and create jobs with the aim of improving the conditions for business growth.

November 2010 Coordinated support

TheNationalCouncilforGraduateEntrepreneurship(NCGE)The NCGE is developing its University Enterprise Networks, which bring together universities, private sector businesses and regional agencies in projects to promote entrepreneurship to students and postgraduates. The NCGE hastheaimofraisingtheprofileofentrepreneurshipandtheoptionofstartingyourownbusinessasacareerchoiceamong students and graduates. The NCGE is the national focal point for graduate entrepreneurship and collaborates with bodies across the UK and internationally.

2004 Entrepreneurial culture, education and training

The R&D Tax CreditLegislation was introduced in 2011 to increase the additional deduction for qualifying R&D expenditure given to SMEsincomputingbusinessprofitsorlossesforcorporationtaxpurposes.ThetargetsareSMEsthatclaimR&Dtax relief. The policy objective is to improve the overall competitiveness of the UK tax system for R&D companies by increasing the incentive for SMEs to carry out R&D, increasing R&D and innovation in the UK.

2011 Regulation and taxation

UK Innovation Investment Fund (UKIIF)The UKIIF has been established to drive economic growth and create highly skilled jobs by investing in businesses wheretherearesignificantglobalopportunities.Thefundinvestsintechnology-basedbusinesseswithhighgrowthpotential. The UKIIF focuses on investing in growing small businesses, start-ups and spinouts, in digital and life sciences, clean technology and advanced manufacturing.

June 2009 Access to funding

VentureCapitalTrusts(VCT)A VCT is a company, broadly similar to an investment trust, which has been approved by HMRC and which subscribes for shares in, or lends money to, small unquoted companies. Under the VCT scheme, VCTs and their investors enjoy certain tax reliefs.

1995(regular follow-up amendments)

Access to funding, coordinated support, regulation and taxation

Corporate Venturing Scheme (CVS)The CVS is aimed at companies considering direct investment, in the form of a minority shareholding, in small independent higher-risk trading companies or groups of such companies. It provides tax incentives for corporate equity investment in the same types of companies as those qualifying under the EIS and VCT schemes. The aims of the CVS are to increase the availability of venture capital to small higher-risk trading companies from corporate investors and, through this, foster wider corporate venturing relationships between otherwise unconnected companies.

2000–10 Access to funding, coordinated support, regulation and taxation, entrepreneurial culture

EnterpriseCapitalFunds(ECFs)ECFsaddressamarketweaknessintheprovisionofequityfinancetoSMEsbyusinggovernmentfundingalongsideprivate sector investment to establish funds that operate within the "equity gap". Capital for Enterprise Limited (CfEL) is responsible for the management of ECFs.

2006 Access to funding, coordinated support

New entrepreneur visaThe UK entrepreneur visa service is a UK immigration service, which grants access to people who wish to start a business in the UK, and is aimed at attracting investor-backed business people who wish to immigrate to the UK to start high-tech companies. UK business visas of this type enable their holder to live and work in the UK without the need for a UK work permit. The goal is to better position London as a location for start-ups.

November 2010 Coordinated support

Selectionofgovernmentleadingpractices


Methodology

For this first edition of the Entrepreneurship Barometer, our analysis of the G20 country environment is articulated around the five enablers (access to funding, regulation and taxation, education and training, entrepreneurship culture, coordinated support) defined by the G20 Young Entrepreneurs’ Alliance (YEA) in Toronto, Canada (20–22 June 2010). Our analysis is based on four building blocks: macroeconomic indicators, a perception survey conducted across the G20 countries, qualitative interviews of emblematic entrepreneurs and an analysis of G20 governments’ leading practices.

Throughout this report, we have used the following definitions:

• Young entrepreneurs are young women and men aged between 18 and 40

• The split of country groupings between mature markets (MMs) and rapid-growth markets (RGMs) is based on the definition provided by the International Monetary Fund (IMF)

• As no single definition is shared across all the G20 countries for small and medium enterprises (SMEs), we have adopted each country’s respective definition

We conducted a perception survey with an international panel of 1,001 entrepreneurs across the G20 countries (50 interviews per country). The field research was conducted by CSA Institute between 27 May and 7 July 2011. The perception barometer was calculated using a weighted average of country performance scores.

Our quantitative analysis is based on the following economic indicators:

Access to Funding

Businessangels• Number of business angel networks [EBAN]Venturecapital(VC)fund-raising• Equity invested (US$m) [TO]SMElending• Loan value (% of GDP) [WB]

Private equity (PE)• Deal value (US$m) [DL]

SME stock markets• Value of shares trading (US$m) [WFE]• Number of listed companies [WFE]Broadpublicstockmarket• Value of shares trading (US$m) [WFE]• Number of listed companies [WFE] Initialpublicoffering(IPO)broadandjuniormarket activity• IPO number of deals [DL]• IPO capital raised [DL]

Entrepreneurshipculture

Innovative environment • Research and development expenditure (% of GDP) [WB]• Scientific and technical journal articles (per million of population) [WB]• Researchers in R&D (per million of population) [WB]

RegulationandTaxation

Tax subsidy rate for US$1 of R&D SMEs [OECD]Start-up incentives (% of GDP) [OECD]

Starting a business• Number of procedures [WB]• Time (days) [WB]• Cost (% income per capital) [WB]• Minimum capital (% income per capital) [WB]

Number of patents [WIPO]Time spent on tax issues (hours/year) [WB]Cost of hiring, severance cost and notice period [WB]

Education and Training

Public spending on education, total (% of GDP) [WB]School enrollment, secondary (% growth) [WB]School enrollment, tertiary (% growth) [WB] Tertiary-type A and advanced research program (number of graduates) [OECD]

Sources: Dealogic (DL), World Bank (WB), European Business Angel Association (EBAN), World Federation of Exchanges (WFE), World Intellectual Property Organization (WIPO), Capital IQ data (CIQ), Organization for Economic Cooperation and Development (OECD), ThomsonOne (TO).

Further details can be found in the methodology section of The Nice Côte d’Azur 2011 Entrepreneurship Barometer by Ernst & Young.

1 Throughfivekeyenablers,theEntrepreneurshipBarometeranalyzesentrepreneurs’ perception as well as government leading practices in

order to provide key recommendations to governments and entrepreneurs.

2 Thecountryprofilesexplorethenationalspecificitiesofentrepreneurshipenvironment to provide a better understanding to entrepreneurs

considering international expansion.

3 Highlighting the main conclusions of the report, the Barometer website provides further government leading practices and entrepreneurs’

success stories. • www.ey.com/entrepreneurship-barometer

Entrepreneurs speak outA call to action for G20 governments

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© 2011 EYGM Limited. All Rights Reserved.

EYG No. CY0205

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Contact

Bob ForsythUK Strategic Growth Markets LeaderTel: + 44 1223 557027 Email: [email protected]

Catherine MastersUK Strategic Growth Markets Marketing LeaderTel: + 44 20 7951 6734Email: [email protected]

Growing Beyond

In these challenging economic times, opportunities still exist for growth. In Growing Beyond, we’re exploring how companies can best exploit these opportunities — by expanding into new markets, finding new ways to innovate and taking new approaches to talent. You’ll gain practical insights into what you need to do to grow. Join the debate at www.ey.com/growingbeyond.

This report has been produced in collaboration with Oxford Analytica (www.oxan.com), an independent consultancy that has for over 35 years provided authoritative analysis of the macro environment.

Documents

Entrepreneurs speak outEntrepreneurs speak out A call to action for G20 governments The Nice Côte d’Azur 2011 Entrepreneurship Barometer Produced for the G20 Young Entrepreneur