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Global Entrepreneurship Report 2016

by Administrator, on Jul 29
In this report Global Entrepreneurship Monitor tracks rates of entrepreneurship across multiple phases and assesses the characteristics, motivations and ambitions of entrepreneurs, and the attitudes societies have toward this activity in 2015/2016
Gem 2016 global report

The 2015 Global Entrepreneurship Monitor (GEM) survey represents the 17th year that GEM has tracked rates of entrepreneurship across multiple phases and assessed the characteristics, motivations and ambitions of entrepreneurs, and the attitudes societies have toward this activity. This report covers results based on 60 economies completing the Adult Population Survey (APS) and 62 economies completing the National Expert Survey (NES). Part 2 of this report features a page of results on each economy, with numbers and rankings on key GEM indicators from the APS, as well as an assessment of ecosystem factors from the NES.

The aim of this report is to inform academics, educators, policy makers and practitioners about the multidimensional nature of entrepreneurship around the world. Improvements and stability in GEM measures from year to year can demonstrate the value of long-term commitments by policy makers and public and private stakeholders in effecting changes and providing needed resources for building more supportive entrepreneurship ecosystems. It is GEM’s goal to advance knowledge about entrepreneurship and guide decisions that can lead to the conditions that allow entrepreneurship to thrive.

Let's overview the few of the major findings from the report:

SOCIETAL VALUES ABOUT ENTREPRENEURSHIP

Development Group Averages for Societal Values about EntrepreneurshipAcross 60 economies around the world, 68% of working-age adults, on average, perceive high status for entrepreneurs in their societies, and 61% believe they receive positive media attention.

In the factor-driven and efficiency-driven economies, two-thirds of adults, on average, think entrepreneurship is a good career choice. In the innovation driven economies, 53% have this belief. Three countries from the Asia region (Kazakhstan, Philippines and Indonesia) exhibit high levels on all three indicators, with threefourths or more of people stating that entrepreneurs receive high status and are represented positively in the media, and that entrepreneurship is a good career choice.

PHASES/TYPES OF ENTREPRENEURIAL ACTIVITY

Average TEA rates tend to be highest in the factor-driven group, decreasing with higher levels of economic development (21% for factor-driven, 15% for efficiency-driven and 8% for innovation-driven). Established business ownership is also highest in the factor-driven group (13% for factordriven, 8% for efficiency-driven and 7% for innovation-driven), although the proportion of established business owners relative to TEA is smaller than in the innovation-driven economies. High rates of both TEA and established business ownership are exhibited in Senegal and Ecuador, where over one-third of the population is starting or running a new business and over onesixth is running a mature one.

Model of Business Phases and Entrepreneurship Characteristics Represented in GEM

Entrepreneurial Employee Activity (EEA) is highest in the innovation-driven economies (1% for factor-driven, 2% for efficiency-driven and 5% for innovation driven). Norway, Australia and the United Kingdom report the highest EEA rates, at 8% or more of their adult populations. Discontinuance is highest in the factor driven economies (8% for factor-driven, 5% for efficiency-driven and 3% for innovation driven). A lack of profits or finance explain half or more of the exits in the factordriven and efficiency-driven economies.

The innovation-driven group shows equal proportions of exits due to unprofitability compared to the other two development stages, but these economies are less than half as likely to name financial problems as a reason for business exits. Both the efficiency-driven and innovation-driven economies show four times the proportion of exits due to bureaucracy compared to the factor-driven group.

MOTIVATION FOR EARLYSTAGE ENTREPRENEURIAL ACTIVITY

Most entrepreneurs around the world are opportunity-motivated. In the factorand efficiency-driven economies, 69% of entrepreneurs stated they chose to pursue an opportunity as a basis for their entrepreneurial motivations, rather than starting out of necessity. The innovation-driven economies show a higher proportion of opportunitymotivated entrepreneurs, at 78%. 

Among entrepreneurs with opportunitydriven motives, a portion of these seek to improve their situation, either through increased independence or through increased income (versus maintaining their income). GEM calls these improvement-driven opportunity (IDO) entrepreneurs.

To assess the relative prevalence of improvementdriven opportunity entrepreneurs versus those motivated by necessity, GEM has created the Motivational Index. This index reveals that there are one and a half times as many IDO entrepreneurs as necessity-driven ones, on average, in the factor-driven economies, and twice as many in the efficiency-driven economies. In the innovation-driven economies, there are 3.4 times as many IDO entrepreneurs as necessity-motivated entrepreneurs.

GENDER AND AGE DISTRIBUTION OF EARLY STAGE ENTREPRENEURIAL ACTIVITY

Among development levels, the factordriven economies have the highest average female TEA rates and the highest rate relative to men. Among those entrepreneurs, however, women are nearly one-third more likely to start businesses out of necessity than men. In six economies (Vietnam, Philippines, Thailand, Malaysia, Peru and Indonesia), women show equal or higher entrepreneurship rates than men. The overall age pattern for entrepreneurship shows the highest participation rates among the 25–34 and 35–44 year olds, people in their early and mid-careers.

INNOVATION

Average innovation levels increase with development level (21% for factor-driven, 24% for efficiency-driven and 31% for innovation-driven). Within the individual economies, the highest levels can be seen in Chile and India, where over half of the entrepreneurs in these economies state they have innovative products or services.

INTERNATIONALIZATION

The innovation-driven phase of development reveals the highest average level of internationalization (6% for factor-driven, 13% for efficiency-driven and 20% for innovation-driven).

Panama and four European economies (Luxembourg, Switzerland, Croatia and Slovenia) each contain over one-third of entrepreneurs with substantial international sales. Canada also shows a high rate of internationalization, which boosts North America’s average.

Download the full version of the report here

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The survey and report were conducted by the Global Entrepreneurship Monitor (GEM) and published on InnMind with the permission. 

 

Note: Full or partial copy of the publication is allowed only with the direct active link to InnMind platform.

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