The perceived opportunity to start a business varies around the world, as recently published according to the report of the Global Entrepreneurship Monitor. Yet the number of people who feel it is a good time for entrepreneurs is not directly correlated with the number of people who would actually go ahead and give that entrepreneurial idea of theirs a chance.
According to the survey of 170,000 people in 49 countries and territories, some countries are equipped with intrepid entrepreneurs who are undeterred by the common perception that their home is not a good place for start-ups, while other places have a more timid population. who cite fear of failure as a reason not to start a business despite agreement on ample opportunities.
The tendency to be more or less brutal with regard to entrepreneurship is also not strictly determined by a country’s income level. The parameter affects different levels of corporate ownership and entrepreneurship around the world, as entrepreneurial activity and, to an even greater extent, self-employment is more common in countries with lower income levels. This is because these countries often lack sufficient opportunities for traditional employment, forcing more people to become their own bosses.
For example, levels of perceived business opportunities are similar in Venezuela and the Netherlands, where over 60% of respondents see favorable conditions for starting a business. About a third of these people – or about 20% of the total number of respondents from each country – would still refuse for fear of failure. This is despite the vastly different economic situations of the two countries. The same can be said about the response patterns in Switzerland and Iran, where the two parameters of entrepreneurship are at a similar level despite differing economic realities in the field.
Deep-rooted entrepreneurial spirit?
Saudi Arabia and Indonesia are the countries in the survey where most people saw favorable conditions for starting a business. Yet in Saudi Arabia, more than half of those who spot opportunities would not act on them, while in Indonesia that share was only a third. These differences persist, despite relatively many stocks in both countries saying they found the bureaucratic hurdles of entrepreneurship manageable, had the knowledge to run their own businesses and also knew other people who had recently started businesses.
While US respondents testified to relatively few opportunities, the number of unwilling respondents was also low, in keeping with the country’s entrepreneurial ethos. Again, US response patterns were close to that of another nation – the UK – in terms of bureaucratic ease and perceived opportunity. However, they differed much more with regard to the intention to actually start a business, indicating differences that are more deeply rooted in society. The Global Entrepreneurship Monitor identifies divergent ideas about how “good is perceived collectively in comparison to individual success, and how people and groups balance risk against reward” as factors that can influence individuals’ decisions at a deeper level.
Hesitant response from China and India
Respondents in the rapidly developing economies of China and India behaved rather timidly in a global comparison. This example means that the US still ended up registering more people who saw potential in starting a business while not being afraid than China, which scored much higher on opportunity but also on reluctance.
The lowest hesitation, but also one of the lowest estimates of opportunity, was recorded in South Korea. Finally, in Japan, only 12.7% thought it was a good time for entrepreneurs, and about half of them – a mere 6.2% in total – did not rule out the option of becoming one.
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Mapped by Statistical
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.