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GEM Scotland Report 07/08 Launch
Professor Sara Carter OBE
Head of Department
Hunter Centre for Entrepreneurship
University of Strathclyde Business School
23 September 2009
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Hunter Centre for Entrepreneurship
Mission
To provide excellent teaching that motivates and equips students to engage in entrepreneurial behaviours and to be influential in the development of best practices in entrepreneurship education
To produce research of high academic quality that is influential and relevant to policy and practice
To engage in useful knowledge exchange with enterprises whereby best practices can be both shared with and informed by industry partners
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p Global Entrepreneurship Monitor Scotland 2007/08
Jonathan LevieHunter Centre for Entrepreneurship
University of Strathclyde
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p Total Early-stage Entrepreneurial Activity (TEA):How Scotland Compared in 2008
0%
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Per
cen
tag
e o
f ad
ult
po
pu
lati
on
b
etw
een
18-
64 y
ears
Scotland
United Kingdom
Ireland
United States
Factor-driveneconomies
Efficiency-driveneconomies
Innovation-driveneconomies
Source: GEM 2008 adult population surveys
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TEA%
change
Scottish TEA as a % of other TEA rates
2007 2008 2007 2008
Scotland 4.6 4.4 -4% n/a n/a
UK 5.5 5.6 +2% 84% 79%
High income/innovation-driven nations 6.2 6.7 +9% 74% 66%Arc of Prosperity nations 7.9 7.6 -3% 58% 58%
TEA rates in Scotland & benchmark countries
Source: GEM 2007 and 2008 adult population surveys
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“I know someone who has started a business in the last two years”
2002 2003 2004 2005 2006 2007 20080
10
20
30
40
50
60
Scot UK AOP
% o
f n
on
-en
tre
pre
ne
uri
all
y-a
cti
ve
p
eo
ple
ag
ed
18
-64
wh
o a
gre
ed
Source: GEM 2002 to 2008 adult population surveys
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p “There are good opportunities for starting a
business in my local area in the next 6 months”
2002 2003 2004 2005 2006 2007 20080
10
20
30
40
50
60
Scot UK AOP%
of
no
n-e
ntr
ep
ren
eu
ria
lly
-ac
tiv
e
pe
op
le a
ge
d 1
8-6
4 w
ho
ag
ree
d
Source: GEM 2002 to 2008 adult population surveys
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p Scottish Male and Female TEA rates
2002 – 2008
0%
2%
4%
6%
8%
10%
2002 2003 2004 2005 2006 2007 2008
males females
Source: GEM 2002 to 2008 adult population surveys
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Informal Investment rate in Scotland, UK and Arc of Prosperity nations, 2002-2008
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
2002 2003 2004 2005 2006 2007 2008
Scotland UK AOP nations
(% of respondents aged 18064 who invested in someone else’s new business in the last three years)
Source: GEM 2002 to 2008 adult population surveys
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p Distribution of early-stage entrepreneurs and established business owner-managers in Scotland and the UK, by business location
Early-stage Established
Scotland UK Scotland UK
% Home based 58 58 60 59
% Separate premises 36 33 35 35
% Mobile service 6 9 5 7
Total 100 100 100 100
No. entrepreneurs in sample 153 3039 167 3232
Source: GEM UK 2007 and 2008 adult population survey
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TEA rate and EBO rate estimates for Scottish local authorities, by quintiles, 2003-2008
SC lads: tearate by quintile
tearate
0 to 3.253.25 to 4.274.27 to 5.005.00 to 5.605.60 to 8.40
SC lads: ebo rate by quintile
eborate
0 to 3.103.10 to 4.254.25 to 5.605.60 to 7.007.00 to 10.40
Source: GEM UK 2003 to 2008 adult population surveys
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p Gain in intention and activity from business or
enterprise training, by source of training
SchoolCollege or university
Work placement Gov. agency
Scot UK Scot UK Scot UK Scot UK
Intend to start a business in three years time (non-
entrepreneurs only)
No training4.5% 6.1% 3.6% 5.7% 3.8% 5.1% 4.5% 6.3%
Compulsory training
5.3% 9.7% 14.6% 11.8% 7.8% 7.7% 3.8% 10.3%
Gain from training (times)
1.2 1.6 4.1 2.1 2.1 1.5 0.8 1.6
Corrected gain
0.6 1.0 2.2 1.7 1.2 1.4 1.1 1.6
TEA rate
No training4.8% 6.5% 3.5% 5.7% 4.4% 6.7% 4.1% 5.9%
Compulsory training
3.1% 7.2% 9.2% 8.0% 3.5% 5.3% 7.9% 5.7%
Gain from training (times)
0.6 1.1 2.7 1.4 0.8 0.8 2.0 1.0
Corrected gain
0.6 1.0 2.6 1.4 0.7 0.8 1.8 1.2
Source: GEM UK 2006 and 2007 adult population surveys
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Scotland UK Denmark Ireland Iceland Finland
Expect to start a business in the
next 3 years (non-
entrepreneurs only)
No training 2.5% 3.8% 4.3% 4.3% 8.6% 2.4%
Compulsory training 8.6% 11.3% 8.3% 13.3% 14.7% 7.2%
Gain from training (times) 3.43 2.97 1.94 3.08 1.71 2.95
TEA rate
No training 3.7% 4.2% 4.2% 5.5% 7.4% 4.4%
Compulsory training 7.4% 10.4% 4.9% 9.1% 16.4% 6.3%
Gain from training (times) 2.01 2.49 1.2 1.7 2.2 1.4
Gain in intention and activity from training in starting a business, by source of training
Source: GEM UK 2008 adult population survey
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Some Implications for Policy
Home-based business the Model Revised Scottish Secure Tenancy
Agreement states: “You and anyone living with you must not run any kind of business from the house. However, if you ask us, we may give permission... If we give permission, we may also increase your rent.”
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Some Implications for Policy
Entrepreneurship training E-ship training can double the rate of
startup of graduates from further and higher education, even if it isn’t voluntary
Should we make this an integral part of courses at third level?
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p “Fear of failure would prevent me starting a business”
(among those who see opportunities)
2002 2003 2004 2005 2006 2007 20080
5
10
15
20
25
30
35
40
45
Scot UK AOP%
of
no
n-e
ntr
epre
neu
rial
ly a
ctiv
e p
eop
le a
ged
18-
64 w
ho
ag
reed
Source: GEM 2002 to 2008 adult population surveys
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p “I have the knowledge, skills and
experience needed to start a business”
2002 2003 2004 2005 2006 2007 20080
5
10
15
20
25
30
35
40
45
50Scot UK AOP
% o
f n
on
en
trep
ren
euri
ally
-act
ive
peo
ple
ag
ed 1
8-64
wh
o a
gre
ed
Source: GEM 2002 to 2008 adult population surveys
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p TEA rates for Scotland and the UK, 2002 to 2008, showing 95% confidence intervals and sample sizes
0%
1%
2%
3%
4%
5%
6%
7%
8%
UK 2002
(11902)
UK 2003
(18315)
UK 2004
(17583)
UK 2005
(24513)
UK 2006
(30643)
UK 2007
(34818)
UK 2008
(21995)