Europe in the GlobalEntrepreneurship Scene<br />by Professor Ignacio de la Vega<br />Monday, February 22, 2010<br />Europe...
GEM 1999 Countries<br />
GEM 2000 Countries<br />
GEM 2001 Countries<br />
GEM 2002 Countries<br />
GEM 2003 Countries<br />
GEM 2004 Countries<br />
GEM 2005 Countries<br />
GEM 2006 Countries<br />
GEM 2007 Countries<br />
GEM 2008 Countries<br />
GEM 2009 Countries<br />
54 countries surveyed in 2009: A record!<br />Factor-Driven Economies<br />Algeria*, Guatemala*, Jamaica*, Lebanon*, Moroc...
Measuring Entrepreneurial Activity<br />GEM identifies different phases in the entrepreneurial process<br />Discontinuatio...
Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South Amer...
Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South Amer...
Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South Amer...
Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South Amer...
Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South Amer...
Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South Amer...
Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South Amer...
Why people discontinue businesses<br />
High Expectation Entrepreneurship and Employment Protection Regulations<br />
Entrepreneurship and the 2008-2009 recession<br />Comparing 2006-2007 with 2008-2009:<br /><ul><li>Opportunity perception ...
Decrease in opportunity perception in 50% of innovation-driven countries, increase in none of them
Decrease in opportunity perception in 56% of other countries, increase in 13% of them
Fear of failure rose in almost 40% of countries:
Increase in fear of failure in 33% of innovation-driven countries, decrease in none
Decrease in fear of failure in 44% of other countries, increase in one (6%)</li></li></ul><li>Entrepreneurship and the 200...
Increase in necessity entrepreneurship as % of TEA in 39% of innovation-driven countries, decrease in 11%
Decrease in necessity entrepreneurship as % of TEA in 31% of other countries, increase in 25%</li></li></ul><li>Entreprene...
What the Entrepreneurs think<br />Comparing 2008 with 2009, more than half of entrepreneurs found that starting a business...
Informal Investment (with thanks to Bill Bygrave)<br />Investment by individuals in other peoples’ businesses declined in ...
Special Topic: Social Entrepreneurial Activity (with thanks to Rachida Justo, Jan Lepoutre and Siri Terjesen) <br />
Who Becomes a Social Entrepreneur?<br />
Our Thanks to...<br /><ul><li>The contributors to the GEM 2009 Global Report
William D. Bygrave, Rachida Justo, Jan Lepoutre and SiriTerjesen
The GEM coordination team
Alicia Coduras, Marcia Cole, Mick Hancock, Yana Litovsky and Jeff Seaman
The GEM 2009 national teams
Babson College, Universidad del Desarrollo, Reykjavik University</li></li></ul><li>Europe’s Position in a Global Perspecti...
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Europe in the Global Entrepreneurship Scene - Ignacio De La Vega - GEM and Instituto De Empresa - Stanford - Feb 22 2010

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"Europe in the Global Entrepreneurship Scene". Presentation by Prof. Ignacio de la Vega, Chairman, GEM and Professor at Instituto de Empresa, Madrid, at Stanford Engineering School, February 22 2010.

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Europe in the Global Entrepreneurship Scene - Ignacio De La Vega - GEM and Instituto De Empresa - Stanford - Feb 22 2010

  1. 1. Europe in the GlobalEntrepreneurship Scene<br />by Professor Ignacio de la Vega<br />Monday, February 22, 2010<br />European Entrepreneurship & Innovation (ME421)<br />Entrepreneurship Week<br />Stanford University, School of Engineering<br />Palo Alto, USA<br />
  2. 2. GEM 1999 Countries<br />
  3. 3. GEM 2000 Countries<br />
  4. 4. GEM 2001 Countries<br />
  5. 5. GEM 2002 Countries<br />
  6. 6. GEM 2003 Countries<br />
  7. 7. GEM 2004 Countries<br />
  8. 8. GEM 2005 Countries<br />
  9. 9. GEM 2006 Countries<br />
  10. 10. GEM 2007 Countries<br />
  11. 11. GEM 2008 Countries<br />
  12. 12. GEM 2009 Countries<br />
  13. 13. 54 countries surveyed in 2009: A record!<br />Factor-Driven Economies<br />Algeria*, Guatemala*, Jamaica*, Lebanon*, Morocco*, Saudi Arabia*, Syria*, Tonga, Uganda, Venezuela*, West Bank & Gaza Strip, Yemen<br />Efficiency-Driven Economies<br />Argentina, Bosnia and Herzegovina, Brazil, Chile*, China, Colombia, Croatia*, Dominican Republic, Ecuador, Hungary*, Iran, Jordan, Latvia*, Malaysia, Panama, Peru, Romania*, Russia*, Serbia, South Africa, Tunisia, Uruguay* <br />Innovation-Driven Economies<br />Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, Israel, Italy, Japan, Republic of Korea, Netherlands, Norway, Slovenia, Spain, Switzerland, United Kingdom, United Arab Emirates, United States<br />
  14. 14. Measuring Entrepreneurial Activity<br />GEM identifies different phases in the entrepreneurial process<br />Discontinuation of Business<br />Total Early-StageEntrepreneurial Activity (TEA)<br />Owner-Manager of an Established Business (more than 3.5 years old)<br />Potential Entrepreneur:<br />Opportunities, Knowledge, and Skills<br />Nascent Entrepreneur:<br />Involved in Setting Up a Business<br />Owner-Manager of a New Business (up to 3.5 years old)<br />Conception<br />Firm Birth<br />Persistence<br />
  15. 15. Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South America<br />Eastern Europe<br />Western Europe (EU)<br />Africa<br />US, Non-EU Europe<br />
  16. 16. Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South America<br />Eastern Europe<br />Western Europe (EU)<br />Africa<br />US, Non-EU Europe<br />
  17. 17. Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South America<br />Eastern Europe<br />Western Europe (EU)<br />Africa<br />US, Non-EU Europe<br />
  18. 18. Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South America<br />Eastern Europe<br />Western Europe (EU)<br />Africa<br />US, Non-EU Europe<br />IL<br />
  19. 19. Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South America<br />Eastern Europe<br />Western Europe (EU)<br />Africa<br />US, Non-EU Europe<br />
  20. 20. Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South America<br />Eastern Europe<br />Western Europe (EU)<br />Africa<br />US, Non-EU Europe<br />
  21. 21. Total Early-Stage Entrepreneurial Activity in 2009<br />Middle East/North Africa<br />Asia/Pacific<br />Central/South America<br />Eastern Europe<br />Western Europe<br />Africa<br />US, Non-EU W. Europe<br />
  22. 22. Why people discontinue businesses<br />
  23. 23. High Expectation Entrepreneurship and Employment Protection Regulations<br />
  24. 24. Entrepreneurship and the 2008-2009 recession<br />Comparing 2006-2007 with 2008-2009:<br /><ul><li>Opportunity perception fell in half of all countries
  25. 25. Decrease in opportunity perception in 50% of innovation-driven countries, increase in none of them
  26. 26. Decrease in opportunity perception in 56% of other countries, increase in 13% of them
  27. 27. Fear of failure rose in almost 40% of countries:
  28. 28. Increase in fear of failure in 33% of innovation-driven countries, decrease in none
  29. 29. Decrease in fear of failure in 44% of other countries, increase in one (6%)</li></li></ul><li>Entrepreneurship and the 2008-2009 recession<br />Comparing 2006-2007 with 2008-2009:<br /><ul><li>Necessity entrepreneurship increased as % of TEA in many innovation-driven countries:
  30. 30. Increase in necessity entrepreneurship as % of TEA in 39% of innovation-driven countries, decrease in 11%
  31. 31. Decrease in necessity entrepreneurship as % of TEA in 31% of other countries, increase in 25%</li></li></ul><li>Entrepreneurship and the 2008-2009 recession<br />Comparing 2006-2007 with 2008-2009:<br />Business start-up attempts in large innovation-driven economies most affected<br />New business activity held up well<br />Reduction in business start-up attempts in 50% of innovation-driven countries, increase in 25%<br />Reduction in business start-up attempts in 31% of other countries, increase in 25%<br />Reduction in new business activity in 11% of innovation-driven countries, increase in 39%<br />Reduction in new business activity in 31% of other countries, increase in 38%<br />
  32. 32. What the Entrepreneurs think<br />Comparing 2008 with 2009, more than half of entrepreneurs found that starting a business was more difficult, but around 20% found that it was less difficult. <br />Entrepreneurs were evenly divided on the effect on their prospects for growth.<br />Young, well-educated entrepreneurs who expected to create relatively high numbers of jobs were more likely to see more opportunities for their business as a result of the global slowdown.<br />The more established the entrepreneur, the more pessimistic they were likely to be<br />
  33. 33. Informal Investment (with thanks to Bill Bygrave)<br />Investment by individuals in other peoples’ businesses declined in most G7 economies between 2008 and 2009<br />Elsewhere, the pattern is mixed: lower in 19 countries and higher in 16 countries<br />Great variation in informal investment:<br />Investment at least once in the past 3 years: 1 in 5 Ugandans, 1 in 10 Chileans,<br /> 1 in 100 British, 1 in 200 Brazilians!<br />
  34. 34. Special Topic: Social Entrepreneurial Activity (with thanks to Rachida Justo, Jan Lepoutre and Siri Terjesen) <br />
  35. 35. Who Becomes a Social Entrepreneur?<br />
  36. 36. Our Thanks to...<br /><ul><li>The contributors to the GEM 2009 Global Report
  37. 37. William D. Bygrave, Rachida Justo, Jan Lepoutre and SiriTerjesen
  38. 38. The GEM coordination team
  39. 39. Alicia Coduras, Marcia Cole, Mick Hancock, Yana Litovsky and Jeff Seaman
  40. 40. The GEM 2009 national teams
  41. 41. Babson College, Universidad del Desarrollo, Reykjavik University</li></li></ul><li>Europe’s Position in a Global Perspective (I)Early-stage Entrepreneurial activity (TEA) and GDP per Capita<br />Source: GEM 2009 Global report<br />
  42. 42. Europe’s Position in a Global Perspective (II)High Expectation Entrepreneurship and Employment Protection Regulations<br />Source: GEM 2009 Global report<br />
  43. 43. Entrepreneurship in Europe (I)<br />Differences between countries<br />North / South divide<br />West /East divide<br />North-West Europe: low-medium participation in early-stage entrepreneurship, many other alternatives for income (and employees more protected, see previous slide). Results in 2009 quite stable compared to previous years<br />Southern Europe: higher participation in entrepreneurship, but less ambitious. Increase in necessity entrepreneurship in Greece. Decrease in early-stage entrepreneurial activity in Spain. <br />Eastern Europe: less stable due to big changes in past decades. Increase in necessity entrepreneurship following the economic crisis, especially in Latvia and Hungary<br />
  44. 44. Entrepreneurship in Europe (II)<br />Next slides map entrepreneurship across European regions using 2001-2006 data (based on over 140,000 data points)<br />Differences at national and regional levels <br />Differences in balance between perceptions and activity<br />Differences in growth ambitions<br />Low rates of early-stage entrepreneurial activity not necessarily ‘a bad thing’ if accompanied with good (employment) alternatives, for instance through intrapreneurship (see Global Report, page 31). <br />
  45. 45. Perceivedopportunities to <br />start a business (2001-2006)<br />TEA: Early-stage entrepreneurial <br />activity (2001-2006)<br />Source: Bosma (2009), The Geography of Entrepreneurial Activity and Regional Economic Development. Multilevel analyses <br />for Dutch and European Regions. Ph.D. Dissertation Utrecht University, Utrecht, The Netherlands<br />
  46. 46. Early-stage Entrepreneurial Activity: Low growth oriented (2001-2006)<br />Early-stage Entrepreneurial Activity: High growth oriented (2001-2006)<br />Source: Bosma (2009), The Geography of Entrepreneurial Activity and Regional Economic Development. Multilevel analyses <br />for Dutch and European Regions. Ph.D. Dissertation Utrecht University, Utrecht, The Netherlands<br />
  47. 47. Entrepreneurship in Spain<br />Spain, from the “European Economic Miracle” to a member of the PIGS (FT dixit…..c´..on)<br />Tough times ahead, 20% unemployment, growing deficit, more necessity entrepreneurship coming?<br />Spanish TEA dropped 8% in 2008 and 27,1 % in 2009.<br />Crisis hitting Death Rate: increases a huge 53% percent over previous year. 25 % of that is not a closure but a sale.<br />Women participation also hit by crisis.<br />
  48. 48. Entrepreneurship in Spain<br />Necessity Entrepreneurship grows a 6,7%.<br />Services, Industrial and Technology start ups grow. Decrease in real state and construction related ventures.<br />Smaller start-ups, larger “growth stage” ventures. Dimension as a protection against markets.<br />More “high growth-high potential industries” profiles.<br />Surprising growth of informal investment, more money into the system, cheaper valuations.<br />
  49. 49. Entrepreneurship in Spain<br />Less immigrants starting up.<br />Experts identify more opps that in 2008.<br />More money than deals into market, huge available funding from VC´s and B.angels in 2009-2010.<br />Government interest and investment into training and financing for innovative start-up. “Sustainable Economy” Government Plan.<br />
  50. 50. Entrepreneurship in Spain<br />Growth of necessity entrepreneurship forecasted in Spain and some European nations for the coming years:<br /> "So, what made you decide to go into business for yourself?" "It was something my last boss said." <br /> "Really, what was that?" <br /> "You're fired."<br />
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