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GEM Scotland 2007 and 2008 Global Entrepreneurship Monitor Scotland 2007/8 Jonathan Levie Colin Mason Contents Page 3 Foreword Sir Tom Hunter 4 Chapter 1 Introduction 7 Chapter 2 Summary Highlights for GEM Scotland 2007 and 2008 8 Chapter 3 Entrepreneurial Business Attitudes, Activity and Aspirations in Scotland: 2007/08 Update 14 Chapter 4 Home-based businesses 20 Chapter 5 The Location of Entrepreneurial Activity in Scotland 25 Chapter 6 Entrepreneurship Training 30 Chapter 7 Scottish Entrepreneurship Policy and Programmes Review 2007 and 2008 31 Chapter 8 GEM and Entrepreneurship Policy in Scotland 32 Appendix 1 Data for this study were provided by the Global Entrepreneurship Research Association. Names of the members of national teams, the global coordination team, and the financial sponsors are published in the Global Entrepreneurship Monitor 2007 and 2008 Reports, which can be downloaded at www.gemconsortium.org. We thank all the researchers and their financial supporters who made this research possible. Whilst this work is based on data collected by the GEM consortium, responsibility for analysis and interpretation of those data is the sole responsibility of the authors. 1 List of Tables and Figures Foreword Table 3.1 (Page 8) not nascent or existing business owner- Figure 3.5 (Page 12) Entrepreneurial attitudes among non-entre- managers) Informal Investment rate in Scotland, UK preneurial individuals in the Scottish, UK and and Arc of Prosperity nations, 2002-2008 Arc of Prosperity adult population samples, Table 6.1 (Page 25) (% of respondents aged 18-64 who invested 2002 to 2008 (% agree with statement) Prevalence of business or enterprise training in someone else’s new business in the last GEM Scotland marks an important point in GEM Scotland delivers a critique of our by training provider and age group, combined three years) Table 3.2 (Page 10) 2006 and 2007 sample (ages 18-44 only) Scotland’s future as we face the results of an entrepreneurial culture, we need to keep pushing Scottish and benchmark TEA rates, 2007 Figure 5.1 (Page 20) unprecedented global economic meltdown. out the boundaries and extending the reach of and 2008 Table 6.2 (Page 26) Total early-stage Entrepreneurial Activity rates Gain in entrepreneurial attitudes from for the four NUTS2 regions of Scotland, 2002 enterprise education as we have said too many Table 3.3 (Page 11) business or enterprise training among non to 2008 combined database At this point the pendulum of financial support times before. Entrepreneurial activity in the Scottish and entrepreneurially-active individuals aged 18- UK adult population samples, 2002 to 2008 44 in Scotland and the UK, combined 2006 Figure 5.2 (Page 20) for entrepreneurs and businesses has not yet (% agree with statement) and 2007 Established business owner-manager rates for stopped its swing. The fear for all of us building Culturally as failure has prevailed around the the four NUTS2 regions of Scotland, 2002 to Table 3.4 (Page 11) Table 6.3 (Page 26) 2008 combined database businesses is that it goes too far and viable globe, the last thing Scotland needs is to take Entrepreneurial aspirations in the Scottish, Gain in entrepreneurial intent and activity businesses and ideas are stopped before they a retrograde step back towards a fear of failure. UK and Arc of Prosperity nations adult among 18-44 year olds from business or Figure 5.3 (Page 21) population samples, 2002 to 2008 (% agree enterprise training in Scotland and the UK, Total early-stage Entrepreneurial Activity are started. with statement) combined 2006 and 2007 (TEA) rate estimates for Scottish local With the exception of a few, we have all suffered authorities, by quintiles, combined 2003 to Given the UK Government owns a substantial in the past couple of years – the only way we Table 4.1 (Page 14) Table 6.4 (Page 27) 2008 database Distribution of early-stage entrepreneurs Percentage of GEM 2008 sample of working portion of our major banks it is important a will move forward is with a positive outlook, and established business owner-managers in age who have taken training in starting a Figure 5.4 (Page 21) reasonable balance of lending is provided to hard graft and the willingness to learn from our Scotland and the UK, by business location (%, business by source of training, for Scotland, Established business owner-manager rate combined 2007 and 2008 GEM sample) UK and four Arc of Prosperity countries estimates for Scottish local authorities, by viable business proposals as they grow in difficult collective mistakes. Together we can and we quintiles, combined 2003 to 2008 database circumstances. will build a strong and vibrant Scottish economy, Table 4.2 (Page 14) Table 6.5 (Page 28) Industry sector distribution across early-stage Effect of compulsory training in starting a Figure 5.5 (Page 22) where opportunity prevails for all. TEA estimates and 95% confidence intervals and established owner-managed businesses in business on entrepreneurial attitudes among At its heart economic recovery will be delivered Scotland and the UK, by business location (%) non-entrepreneurially-active individuals for former Business Gateway Local Enterprise in Scotland, UK and four Arc of Prosperity Company regions, 2003 to 2008 combined by business and small businesses and their Table 4.3 (Page 15) countries database growth has never been so important to Distribution of early-stage entrepreneurs by location and age group Table 6.6 (Page 29) Figure 5.6 (Page 22) Scotland’s economic wellbeing. For that reason, Yours Aye Gain in intention and early-stage Established business owner-manager rate local authorities, now responsible for enterprise Table 4.4 (Page 16) entrepreneurial activity from compulsory estimates and 95% confidence intervals for service delivery, need to step up to supporting Tom Working hours per week of UK early-stage training in starting a business in Scotland, former Business Gateway Local Enterprise entrepreneurs on their businesses, 2007 and UK, and four Arc of Prosperity countries Company regions, 2003 to 2008 combined those business in their area – we’re watching. Sir Tom Hunter 2008, in quartiles database Figure 3.1 (Page 9) Table 4.5 (Page 17) National 2007 TEA rates for 43 sovereign Figure 5.7 (Page 23) Percentage contributed by UK nascent nations and Scotland The spectrum of entrepreneurial intention entrepreneurs to start-up costs by location and activity in former Business Gateway Local and start-up cost category , 2007 and 2008 Figure 3.2 (Page 9) Enterprise Company regions, 2003 to 2008 National 2008 TEA rates for 43 sovereign combined database Table 4.6 (Page 18) nations and Scotland Distribution of new and established business Figure 6.1 (Page 27) owner/managers, new and established Figure 3.3 (Page 10) Prevalence of individuals who received owner/managed businesses, and employ- TEA rates for Scotland and the UK, 2002 to training in starting a business at school by ment in Scotland and the UK, 2007 and 2008 2008, showing 95% confidence intervals and gender and age group in Scotland, UK and sample sizes Arc of Prosperity countries, 2008 Table 5.1 (Page 24) Entrepreneurial attitudes among non- Figure 3.4 (Page 12) Figure 6.2 (Page 28) entrepreneurial respondents by former Scottish Male and Female TEA rates 2002 Prevalence of individuals who received Business Gateway Local Enterprise Company – 2008 training in starting a business after school by regions, 2003 to 2008 combined database gender and age group in Scotland, UK and Arc (% of respondents aged 18-64 who are of Prosperity countries, 2008 2 3 List of Tables and Figures Foreword Table 3.1 (Page 8) not nascent or existing business owner- Figure 3.5 (Page 12) Entrepreneurial attitudes among non-entre- managers) Informal Investment rate in Scotland, UK preneurial individuals in the Scottish, UK and and Arc of Prosperity nations, 2002-2008 Arc of Prosperity adult population samples, Table 6.1 (Page 25) (% of respondents aged 18-64 who invested 2002 to 2008 (% agree with statement) Prevalence of business or enterprise training in someone else’s new business in the last GEM Scotland marks an important point in GEM Scotland delivers a critique of our by training provider and age group, combined three years) Table 3.2 (Page 10) 2006 and 2007 sample (ages 18-44 only) Scotland’s future as we face the results of an entrepreneurial culture, we need to keep pushing Scottish and benchmark TEA rates, 2007 Figure 5.1 (Page 20) unprecedented global economic meltdown. out the boundaries and extending the reach of and 2008 Table 6.2 (Page 26) Total early-stage Entrepreneurial Activity rates Gain in entrepreneurial attitudes from for the four NUTS2 regions of Scotland, 2002 enterprise education as we have said too many Table 3.3 (Page 11) business or enterprise training among non to 2008 combined database At this point the pendulum of financial support times before. Entrepreneurial activity in the Scottish and entrepreneurially-active individuals aged 18- UK adult population samples, 2002 to 2008 44 in Scotland and the UK, combined 2006 Figure 5.2 (Page 20) for entrepreneurs and businesses has not yet (% agree with statement) and 2007 Established business owner-manager rates for stopped its swing. The fear for all of us building Culturally as failure has prevailed around the the four NUTS2 regions of Scotland, 2002 to Table 3.4 (Page 11) Table 6.3 (Page 26) 2008 combined database businesses is that it goes too far and viable globe, the last thing Scotland needs is to take Entrepreneurial aspirations in the Scottish, Gain in entrepreneurial intent and activity businesses and ideas are stopped before they a retrograde step back towards a fear of failure. UK and Arc of Prosperity nations adult among 18-44 year olds from business or Figure 5.3 (Page 21) population samples, 2002 to 2008 (% agree enterprise training in Scotland and the UK, Total early-stage Entrepreneurial Activity are started.
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