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hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

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Page 1: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

hunter centre for entrepreneurship @ strathclyde

Global Entrepreneurship MonitorScotland 2004

Jonathan LevieSara Carter

Catherine A.C. Currie

Page 2: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

GEM Research Questions

• Does the level of entrepreneurial activity vary between countries? By how much?

• What makes a country entrepreneurial?• What are appropriate policies for enhancing

entrepreneurial activity?

Page 3: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

GEM Scotland Aims

• How Scotland compares to the UK and other small high income nations?

• Which factors account for Scotland's level of entrepreneurial activity?

• What are the implications for public policy?

Page 4: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

GEM2004 Method & Measures

• Representative sample: 2000+ adults per nation

• Standardised cross-national data: 34 nations

% of adults actively starting a business

(nascent entrepreneurship rate)

Total Entrepreneurial Activity

(TEA)

% of adults running a new business (owner/managers of businesses < 3½ yrs old)

+ =

Page 5: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

2004 - Summary Highlights

• Scottish TEA rate stable at 5.1% (2003: 5.5%)• Attitudes have improved over 2000 – 2004,

particularly among women• Scottish and UK female TEA rates now equal • In-migrants and immigrants 4 times more likely

to start new businesses than life-long residents• Remote regions have relatively high TEA rates• Scottish informal investment rate matched the

UK rate (1.3%) but still less than half the rate for small high income nations

• Launch of Fresh Talent initiative and the Social Entrepreneurs Fund

Page 6: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

-5

1015202530354045

Japa

nS

love

nia

Hon

g K

ong

Bel

gium

Sw

eden

Cro

atia

Por

tuga

lH

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ryIta

lyF

inla

ndG

erm

any

Net

herla

nds

SC

OT

LAN

DS

pain

Den

mar

kS

outh

Afr

ica

Sin

gapo

reG

reec

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ranc

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rael

Nor

way

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and

Pol

and

Can

ada

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ted

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alia

Bra

zil

Icel

and

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Zea

land

Jord

anE

cuad

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AV

ER

AG

E

TE

A r

ate

(%

)How Scotland Compares

TEA rates for 34 sovereign nations and Scotland

FinlandDenmark Norway

Ireland

NewZealand

United KingdomScotland

Israel

Page 7: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Entrepreneurship by Gender

Male TEA rate is twice female TEA rateand more volatile from year to year.

0

1

2

3

4

5

6

7

8

9

2000 2001 2002 2003 2004

Year

TE

A r

ate

(%)

Males

Females

Overall trend is upward but slow

Page 8: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Attitudes to entrepreneurship by gender

Entrepreneurial capacity (i.e. perceived knowledge, skills and experience) has improved…

Male

Female

0

10

20

30

40

50

60

70

2001

2001

2002

2002

2003

2003

2004

2004

% s

ayin

g Y

es

…although significantly fewer females agreed with the statement

Page 9: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Origin and entrepreneurship in Scotland

In-migrants and immigrants delivered double the expected number of entrepreneurs…

GEM 2004 sample Scots Born Non Scots Born

Type of respondentLife-long residents

Internal migrants In-migrants Immigrants

TEA rate 2.6 4.7 13.1 7.5

% of all entrepreneurs 19 36 37 8

% of respondents 37 42 16 4

…while life-long residents delivered half the expected number of entrepreneurs

Page 10: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Location of entrepreneurshipSignificant gender difference in TEA rates in urban areas…

… but no gender difference in TEA rates in remote areas

Page 11: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Origin and location of entrepreneurship

People born outside Scotland had a significantly higher TEA rate in urban and remote areas

Page 12: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Informal Investment Rate

Scottish informal investment rate same as UK rate (1.3%) but half that of small high income nations

0

1

2

3

4

5

2000 2001 2002 2003 2004

Year

Info

rma

l in

ve

stm

en

t ra

te (

%)

Scotland UK Small high income nations

Page 13: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Investment in new business

Informal investment versus venture capital

0

100

200

300

400

500

600

2000 2001 2002 2003

Year

£ m

illi

on

New business informal investment

Early stage equity risk capital*

Early stage investment BVCA members*

*Source: Harrison & Don, 2004

Page 14: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Policy Implications

• In-migrants make a major contribution to new business activity: scope for increasing TEA rate through Fresh Talent Initiative

• Reduced capitalisation and increased self-funding of new businesses suggests a capital gap remains

• Widen Business Start-up Scheme to over 30s• Social Entrepreneurs Fund should help to

spur “thinkers” into “doers”• Scottish Enterprise assists one third of new

businesses: is this sufficient?

Page 15: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie
Page 16: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Attitudes to entrepreneurship by gender

Perception of opportunity to start a business in the next 6 months has increased…

Male

Female

0

10

20

30

40

50

20

00

20

00

20

01

20

01

20

02

20

02

20

03

20

03

20

04

20

04

% s

ay

ing

Ye

s

…with female levels recovering to 2000 rates

Page 17: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

In-migrants and TEAIn-migrants deliver twice the rate of TEA given their proportion of the sample across urban, accessible and remote

URBAN              

    Scots born Non Scots born    

Type of response   Lifelong residents Internal migrants In-migrants Immigrants   Total

TEA rate   3 4 13 8   5

% of all entrepreneurs   26 32 34 9   100

% of all respondents   44 38 12 5   100

ACCESSIBLE              

    Scots born Non Scots born    

Type of response   Lifelong residents Internal migrants In-migrants Immigrants   Total

TEA rate   2 5 7 0   4

% of all entrepreneurs   14 57 29 0   100

% of all respondents   33 44 18 4   100

REMOTE              

    Scots born Non Scots born    

Type of response   Lifelong residents Internal migrants In-migrants Immigrants   Total

TEA rate   6 7 15 40   9

% of all entrepreneurs   21 36 29 14   100

% of all respondents   35 45 17 3   100

Page 18: Hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland 2004 Jonathan Levie Sara Carter Catherine A.C. Currie

Types of business being started by gender

Steady rise in the number of women entering business services

0

10

20

30

40

50

60

70

Consumer Services Business Services TransformingBusinesses

ExtractiveBusinesses

Pro

po

rtio

n o

f to

tal (

%)

2001 Males 2001 Females 2004 Males 2004 Females