The document discusses entrepreneurship trends in Europe based on data from the Global Entrepreneurship Monitor (GEM) project. It finds that early-stage entrepreneurial activity decreased in Western Europe during the 2008-2009 recession while necessity entrepreneurship increased. Entrepreneurial activity also varies significantly across European regions and countries. The document then focuses on entrepreneurship trends specifically in Spain, noting a decline in early-stage activity but a rise in necessity entrepreneurship during the economic crisis. It also discusses differences in industries and sizes of startups in Spain in recent years.

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

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

30. Increase in necessity entrepreneurship as % of TEA in 39% of innovation-driven countries, decrease in 11%

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?

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

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."