lisbon, july 13th, 2005 global entrepreneurship monitor portugal 2004
TRANSCRIPT
Lisbon, July 13th, 2005
Global Entrepreneurship Monitor
Portugal 2004
GEM 2004 Portugal
Agenda
GEM 2004 Portugal
1. Introduction to Global Entrepreneurship Monitor (GEM)
2. GEM Methodology
3. Key Results and Issues
4. Entrepreneurship Dynamics: 2001 to 2004
GEM 2004 Portugal
Background
1. Introduction to GEM
- Initiated by Babson College (US) and London Business School
(UK)
- GEM is unique
- No other benchmark exists that can be used for reliable
international comparisons
- Number of countries has grown from 10 in 1997 to 34 in 2004
- GEM Portugal performed in 2001 and 2004
- Analysis of entrepreneurship dynamics in Portugal
GEM 2004 Portugal
Portugal Team
1. Introduction to GEM
- Funded by The Operational Programme of Employment,
Training and Social Development (POEFDS)
- Project provided by Nova Forum and Sociedade Portuguesa
de Inovação (SPI)
- 2001 GEM Portugal also provided by Nova Forum and SPI
GEM 2004 Portugal
Objective of Study
1. Introduction to GEM
ENTREPRENEURSHIPIN PORTUGAL
Number of entrepreneurs Characteristics of entrepreneurs
Key drivers of entrepreneurship
GEM 2004 Portugal
Main Data Sources
2. GEM Methodology
- Adult population survey, randomly sampling 1,000 adults
- Interviews performed with standard questionnaire used in all
GEM countries
- Implemented by the independent research firm METRIS
- Data for all GEM countries centralized by London Business
School
- Structured interviews and expert survey with 36 national
entrepreneurship specialists
GEM 2004 Portugal
Definition of Entrepreneurship
2. GEM Methodology
- “Any attempt at new business or new venture creation, such
as self-employment, a new business organization, or the
expansion of an existing business, by an individual, teams of
individuals, or established businesses”
NascentEntrepreneurs
Baby-BusinessEntrepreneurs
Adults who have takensome action to create a
new businesses of under 3 months old
Adults that areowner/managers offirms who have paid
wages for 3 – 42 months
GEM 2004 Portugal
Number of Entrepreneurs in Portugal
3. Key Results and Issues
- Portugal has a low rate of entrepreneurial activity
- Only 4 entrepreneurs for every 100 adults
- Reduction from 7 entrepreneurs for every 100 adults in 2001
- Ranked 28th of the 34 countries in GEM 2004
- Ranked 13th of the 16 EU countries in GEM 2004
EU Countries in GEM 2004
Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Poland, Portugal,
Slovenia, Spain, Sweden, United Kingdom
GEM 2004 Portugal
3. Key Results and Issues
-
5
10
15
20
25
30
35
40
45
Ja
pa
nS
lov
en
iaH
on
g K
on
gB
elg
ium
Sw
ed
enC
roa
tia
PO
RT
UG
AL
Hu
ng
ary
Ita
lyF
inla
nd
Ge
rman
yN
eth
erl
an
ds
Sp
ain
De
nm
ark
So
uth
Afr
ica
Sin
ga
po
reG
ree
ce
Fra
nc
eU
KIs
rae
lN
orw
ay
Ire
lan
dP
ola
nd
Ca
na
da
US
AA
rge
nti
na
Au
str
ali
aB
razi
lIc
ela
nd
N.
Ze
ala
nd
Jo
rda
nE
cu
ad
or
Ug
an
da
Pe
ru
AV
ER
AG
E
En
tre
pre
ne
urs
/ 1
00 A
du
lts
,
[95
% C
on
fid
en
ce I
nte
rva
l]
Number of Entrepreneurs in Global GEM
GEM 2004 Portugal
3. Key Results and Issues
-
5
10
15
20
25
30
35
40
45
Ja
pa
nS
lov
en
iaH
on
g K
on
gB
elg
ium
Sw
ed
enC
roa
tia
PO
RT
UG
AL
Hu
ng
ary
Ita
lyF
inla
nd
Ge
rman
yN
eth
erl
an
ds
Sp
ain
De
nm
ark
So
uth
Afr
ica
Sin
ga
po
reG
ree
ce
Fra
nc
eU
KIs
rae
lN
orw
ay
Ire
lan
dP
ola
nd
Ca
na
da
US
AA
rge
nti
na
Au
str
ali
aB
razi
lIc
ela
nd
N.
Ze
ala
nd
Jo
rda
nE
cu
ad
or
Ug
an
da
Pe
ru
AV
ER
AG
E
En
tre
pre
ne
urs
/ 1
00 A
du
lts
,
[95
% C
on
fid
en
ce I
nte
rva
l]
Number of Entrepreneurs in EU Countries
GEM 2004 Portugal
Characteristics of Portuguese Entrepreneurs
3. Key Results and Issues
- More nascent entrepreneurs than baby-business
entrepreneurs
- Near gender equality between entrepreneurs
- Most entrepreneurs focus on the consumer oriented sector
- Entrepreneurs more often motivated by the desire to take
advantage of a business opportunity
- Rather than acting out of necessity due to the absence of other
work opportunities
GEM 2004 Portugal
3. Key Results and Issues
Key Drivers of Entrepreneurship in Portugal
KEY DRIVERS OFENTREPRENEURSHIP
Financial Support
Government Policies and Programmes
Education and Training
Internal Market Openness
Commercial, Professional and PhysicalInfrastructure
Cultural and Social Norms
R&D Transfer
Key drivers discussed with the36 national entrepreneurship
specialists
GEM 2004 Portugal
Key Drivers of Entrepreneurship in Portugal (2)
3. Key Results and Issues
(i) Financial Support
- Insufficient overall financial support for entrepreneurship
- Government financial support more adequate
- But could be applied more effectively
(ii) Government Policies and Programmes
- High level of government awareness
- But time-consuming bureaucracy and inefficient
interactions between agencies and entrepreneurs
GEM 2004 Portugal
Key Drivers of Entrepreneurship in Portugal (3)
3. Key Results and Issues
(iii) Education and Training
- Education system does not foster the needs of
entrepreneurship
- Does not prepare students to take advantage of new
business opportunities
- Does not promote creative or innovative thinking
- Recent increase in university level courses which include
entrepreneurial studies
GEM 2004 Portugal
Key Drivers of Entrepreneurship in Portugal (4)
3. Key Results and Issues
(iv) R&D Transfer
- Good R&D being performed
- But weak links between R&D organizations and those
wanting to commercially implement the developments
(v) Internal Market Openness
- Portuguese market is open to new and growing firms
- But costs in entering new markets may be beyond the
capabilities of new and growing firms
GEM 2004 Portugal
Key Drivers of Entrepreneurship in Portugal (5)
3. Key Results and Issues
(vi) Commercial, Professional and Physical Infrastructure
- Excellent science parks and business incubators
- Increasing entrepreneurship and the likelihood of new
firms succeeding
- Facilities should be spread evenly over the country
- Good commercial and professional infrastructure
- But cost of access can be beyond new firms
GEM 2004 Portugal
Key Drivers of Entrepreneurship in Portugal (6)
3. Key Results and Issues
(vii) Cultural and Social Norms
- Entrepreneurship in Portugal is limited by the national
culture
- Population is reluctant to take risks
- Once entrepreneurs have failed once, they will not be
offered another opportunity
- In contrast to United States, where failure is seen as a
learning experience
GEM 2004 Portugal
Number and Characteristics of Entrepreneurs
4. Entrepreneurship Dynamics: 2001 to 2004
- Number of entrepreneurs decreased from 7 per 100 adults to 4
per 100 adults
- Mirrors international reduction in number of entrepreneurs
- Move from twice as many male than women entrepreneurs in
2001 to near gender equality in 2004
- More nascent entrepreneurs than baby-business
entrepreneurs in both 2001 and 2004
- Entrepreneurs more often taking advantage of an opportunity
rather acting than out of necessity in both 2001 and 2004
GEM 2004 Portugal
4. Entrepeneurship Dynamics: 2001 to 2004
Change in Key Drivers 2001 - 2004
-15%
-10%
-5%
0%
5%
10%
15%
20%
FinancialSupport
GovernmentPolicies andProgrammes
Educationand Training
R&D Transfer InternalMarket
Openness
Commercial,Professionaland PhysicalInfrastructure
Cultural &Social Norms
Ch
an
ge
in
Av
era
ge
Sa
tis
fac
tio
n S
co
re (
20
01
- 2
00
4)
Improvement(2001 - 2004)
Deterioration(2001 - 2004)
Change in Key Drivers 2001 - 2004
E.g. National experts’ average “satisfaction score”for Government Policies and Programmes
is 15% higher in 2004 than 2001
GEM 2004 Portugal
Contact Details
GEM 2004 Portugal
Sociedade Portuguesa de Inovação
Rua Júlio Dinis, no. 242, 208 – 4050-
318 Porto
Tel: 22 607 64 00
Fax: 22 609 91 64
Rua Marquês de Fronteira 20
1099-038 Lisboa
Tel: 21 382 80 20
Fax: 21 386 57 54
[email protected]/html/home.php
Nova Forum