This document summarizes a study on assessing the entrepreneurial mindset of young people in the EU. It provides background on declining entrepreneurship in the EU and the aims of the study. The study included a literature review on entrepreneurship and a survey of over 900 European students across 5 countries. The survey found that while perceptions of opportunities are increasing, entrepreneurial intentions and seeing it as a good career choice are decreasing. The conclusions suggest entrepreneurship education needs new approaches like AI to increase confidence and mentorship for young people.

1. Assessment of an Entrepreneurial
Mindset of Young Generation in the EU
Jānis Hermanis
Lecturer
BA School of Business and Finance
Riga, Latvia
Kristaps Lešinskis
Assistant Professor
BA School of Business and Finance
Riga, Latvia
Dr.Inese Mavļutova
Professor
BA School of Business and Finance
Riga, Latvia
The 12-th Annual Scientific Baltic Business Management Conference ASBBMC 2019
“Foreseeing Challenges and Opportunities for Organizations at the Macro and Micro Level”

2. Purpose
Topicality
 Low entrepreneurial activity in the EU
 EU aims at higher participation rates
The Aim
The aim of the research is to analyse trends in entrepreneurial spirits and mindset in the EU

3. Design
Literature review
The role of entrepreneurs
and entrepreneurship in
society and economy
EU Policy review
The Entrepreneurship 2020
Action Plan, Small Business
Act and others
Analysis of statistics
GEM consortium
OECD statistics
Eurostat
Survey
January-February 2019
> 900 European students
20 questions
Latvia Lithuania Italy Portugal Belgium
FOCUS:

4. Entrepreneurial role in economic development
Classical economists view:
 Adam Smith (1776) assigned no significance to entrepreneurial role
 David Ricardo identified three factors of production: machinery, capital, labour
Schumpeter’s view:
Schumpeter (1934) saw the entrepreneur as the key figure in economic development
because of his role in introducing innovations. Concept of «Creative destruction».
Some other views:
 Parson and Smelser (1956) entrepreneurship and increased output of capital two
necessary conditions for economic development
 Sayigh (1962) simply describes entrepreneurship as a necessary dynamic force
 Harbison (1965) includes entrepreneurs among the prime movers of innovations

5. Contemporary role of entrepreneurship
• puts new business ideas into practice
• creates new businesses
• facilitates personal growth
• promotes capital formation
• creates social change
• grows exports trade
• creates jobs
• improves the standard of living
• introduces innovations
• creates wealth and distribution
• promotes regional development
• increases competition

6. https://ec.europa.eu/growth/smes/promoting-entrepreneurship/action-plan_en
EU policy framework

7. The European Commission, file:///C:/Downloads/final-report-pub-cons-entr2020-ap_en.pdf
The European Commission, https://ec.europa.eu/growth/smes/promoting-entrepreneurship_en
EU policy framework

8. Entrepreneurial intensions recently decrease
Source: GEM data base

9. Fear of failure increases
Source: GEM data base

10. Seeing entrepreneurship as a good career choice decreases
Source: GEM data base

11. Yet, perception of opportunities increases
Source: GEM data base

14. https://app.powerbi.com/view?r=eyJrIjoiZTEzMTgzNTctOThmNC00NjUyLWEzNjktNWNmZGQzMzhkZDY2IiwidCI6I
mQ3NTZhN2ViLWJkMDAtNDJkOC1iYmUyLTM5MDBjZGRkNzljNiIsImMiOjh9
Survey
January-February 2019
> 900 European students
20 questions

15. Conclusions and suggestions
• Despite stimulating EU policies, entrepreneurial activity in the EU is decreasing even
when perception of opportunities grow.
• Surveyed students disclose their lack of confidence, in particular, related to availability
of financial sources.
• Surveyed students are looking for evaluation of their business ideas relevance and
creativity as well as mentoring and consulting.
• Our research results disclose necessity for new, modern approaches in entrepreneurial
education, including the use of AI tools, big data collection and processing etc.

16. Bibliography
1. European Commission, 2013. «The Entrepreneurship 2020 Action Plan».
Available at https://ec.europa.eu/growth/smes/promoting-
entrepreneurship/action-plan_en
2. Global Entrepreneurship Monitor. Available at https://www.gemconsortium.org
3. OECD, 2017. «Entrepreneurship at a Glance 2017». Available at
http://www.oecd.org/sdd/business-stats/entrepreneurship-at-a-glance-
22266941.htm
4. Bednarzick, R.W., 2000. “The Role of Entrepreneurship in U.S. and European Job
Growth.” Monthly Labor Review, Vol. 123, No.7,. 3-16.
5. Cooper, 2003. «Entrepreneurship: The Past, The Present, The Future.» In
Handbook of Entrepreneurship Research, 21-36.
6. Dhaliwal, A., 2016. «Role Of Entrepreneurship In Economic Development.»
International Journal of scientific research and management (IJSRM). Vol. 4,
Issue 06, 4262-4269.

17. Thank you!