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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 - 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.

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