AMWAY GLOBAL. Encouraging WOMEN to be entrepreneurs Eliminating the fear of failure. A Survey of Amway Europe, March 2014

Transcription

1 AMWAY GLOBAL ENTREPRENEURSHIP REPORT 2013 Encouraging WOMEN to be entrepreneurs Eliminating the fear of failure. A Survey of Amway Europe, March 2014 Candan Corbacioglu Amway Europe Corporate Affairs Area Manager

2 Survey Design Fieldwork: 8 th March 19 th May 2013 Sample: women and men aged 14+ (including women) Countries: 24 countries (Australia, Austria, Colombia, Czech Republic, Denmark, Finland, France, Germany, Great Britain, Greece, Hungary, Italy, Japan, Mexico, Netherlands, Poland, Portugal, Romania, Russia, Spain, Switzerland, Turkey, Ukraine, USA) Method: Face-to-face/telephone interviews Research Institute: GfK Group Scientific Partner: Technical University Munich, School of Management Goal: Point out the economic potential of entrepreneurs in different national economies and to support the activation of potential entrepreneurs. 2

3 AMWAY GLOBAL ENTREPRENEURSHIP REPORT 2013 WOMEN DETAILED RESULTS

4 How do you see entrepreneurship? My attitude towards entrepreneurship is Average Denmark Finland Australia Colombia Netherlands Japan Ukraine Mexico Great Britain France Romania Greece Italy Poland Russia Czech Rep. Switzerland Spain Portugal Germany Turkey USA Austria Hungary positive negative don't know 4

5 How do you see entrepreneurship? Can you imagine starting your own business? Average Colombia Mexico Greece Australia Turkey Romania USA Ukraine Finland Switzerland Poland Netherlands France Italy Great Britain Czech Rep. Portugal Austria Russia Spain Germany Hungary Denmark Japan I can imagine starting my own business I cannot imagine starting my own business don't know 5

6 Entrepreneurial attitude and actual self-employment rate The data for the whole population (men&women) 31 % Entrepreneurial Gap 8 % Selfemployment Rate 39 % Selfemployment Potential 6

7 Entrepreneurial gap For years now, the fear of failure has been among the biggest obstacles to becoming self-employed. The fear to fail has lead to a wide gap between people who can imagine to start a business and people who have actually already put their plans into action. On average, this entrepreneurial gap is at 31 % in 2013 (the data for the whole population [men&women]). 7 Amway Amway Global Global Entrepreneurship Entrepreneurship Report Report

8 Fear of failure as an obstacle to starting a business 16 % threat of unemployment 14 % legal consequences, lawsuits 32 % threat of the economic crisis 5 % not to be given a second chance 42 % financial burdens up to bankruptcy 4 % other 15 % personal disappointment, loss of self-esteem 13 % being forced to take over the responsibility 9 % disappointing or losing my family 6 % reputation loss in front of friends, co-workers, or business partners * Multi-choice question 8

9 How the fear of failure hinders entrepreneurship 71 % The fear of failure is a big obstacle to starting a business. It is composed by: 42 % Financial burdens up to bankruptcy 32 % Threat of the economic crisis 16 % Threat of unemployment Most afraid: Japan 94 % Italy 91 % Czech Rep. 90 % Greece 90 % Portugal 86% 34 % Average self-employment potential 9

10 Fear of failure as an obstacle to starting a business The fear of failure is a big obstacle to starting a business for 71 % of women across the world. Most present: Japan 94 % Italy 91 % Czech Rep. 90 % Greece 90 % Portugal 86% Least present: USA 39 % Netherlands 46% Mexico 46 % Colombia 53 % Australia 56% Portugal, Greece, Italy and Hungary Japan Japan Turkey > 50 % Threat of the economic crisis 69 % Financial burdens up to bankruptcy 47 % Being forced to take over the responsibility > 17 % Traditional values such as personal disappointment losing family/friends, reputation 10

11 What are the most appealing aspects to start up an own business? Independence from an employer, being my own boss 40 Self-fulfillment fulfillment, possibility to realize own ideas 37 Second income prospects 29 Better compatibility of family, leisure time and career 25 Return to job market, alternative to unemployment 19 None of the above 16 11

12 Independence, self-fulfillment, second income Women mentioned being independent from an employer (40 %) and realizing own ideas (37 %) as the dominant motives for starting a business. Income-related aspects such as second income (29 %) or return to the job market (19 %) were less important. Better compatibility of family, leisure time and career is most important to women from USA (54 %), Australia (49%) and Colombia (45%). If Gross Domestic Product (GDP) per capita is low, second income prospects rank high. Crisis-struck countries: Entrepreneurship is considered as a way out of unemployment. 12

13 Encouraging entrepreneurship through education and teaching of business skills Indications in % for Entrepreneurship education and teaching of business skills: % USA 41 % 44 % 45 % 49 % Finland Netherlands Greece 53 % France Denmark 38 % 24 % 24 % Colombia 35 % Romania 33 % Austria * Multi-choice question 32 % Spain 23 % Portugal Russia Switzerland Czech Rep. Poland 22 % Italy 32 % 21 % 16 % Turkey 32 Hungary 32 % 31 % Great Britain Japan 26 % 31 % Germany 27 % Ukraine 30 % Mexico 54 % Australia 13

14 What factors encourage the foundation of business? 42 % Public funding and start-up loans 33 % Entrepreneurship education, teaching of business skills 28 % Backing from family and social networks 27% Low bureaucracy 25 % Mentoring, support through business networks 22% Low-risk business models 14

15 Entrepreneurship-friendliness of society 45 % 46 % friendly unfriendly Denmark 78% USA 72% Australia 65% Finland 65% Great Britain 61% Hungary 76% Portugal 75% Italy 66% Spain 65% Colombia 64% 15

16 ATTITUDES TOWARDS ENTREPRENEURSHIP FOCUS ON ESTONIA 16 Source: Global Entrepreneurship Monitor 2012 & 2013 and other sources

17 Attitudes towards entrepreneurship in Estonia (whole population) Estonia EU average 46% 29% Perceived opportunities 40% 42% Perceived capabilities 39% 40% Fear of failure 19% 14% Entrepreneurial intentions (respondent expects to start a business within three years) 53% 57% Entrepreneurship as a good career choice 17 Amway Source: Global Global Entrepreneurship Entrepreneurship Report 2013 Monitor 2013

18 Attitudes among Estonian women Female Male 10% 19% Total Entrepreneurial Activity (TEA) Rate (% Adult Population) 40% 51% Sees Good Opportunities 35% 52% Has Capabilities to Start 39% 31% Fear of Failure for those Seeing Opportunities 14% 20% Intend to Start In the Next Three Years (Non-Entrepreneurs both 18% Necessity-Motives (% TEA) both 79% Opportunity-Motives (% TEA) 18 Amway Source: Global Global Entrepreneurship Entrepreneurship Report 2013 Monitor 2012

19 Entrepreneurship is perceived as ( whole population): An opportunity to earn income Self-realization Lifestyle 19 Source: Other sources

20 Expectations of Entrepreneurs Toward Entrepreneurship (whole population) Great business management Professional team Required and competitive product Great marketing Wide market Entrepreneurship friendly environment 20 Source: Other sources

21 Reality in Estonia: Entrepreneurs only 9-10% of population There are only 28 enterprises per 1000 citizens 65% prefers salary work instead of being self-employed Only 53% will survive as an entrepreneur 21 Source: Other sources

22 Obstacles to become self-employed in Estonia ( whole population) Lack of good and competitive business idea No glue of the business environment Lack of knowledge, skills and experiences Fair of failure Lack of safety, fair of taking risks 22 Source: Other sources

23 Conclusion Entrepreneurship enjoys a quite high reputation among women all over the world. Women (likewise men) associate entrepreneurship with independence and the freedom to realize own ideas. However, many of the respondents say that they don t live in business- friendly societies. Also, more than two thirds of the respondents say that fear of failure is an obstacle to founding a business. These factors disable entrepreneurial growth. And this can harm national economies. 23

24 Thank you for your attention Candan Corbacioglu Amway Europe Corporate Affairs Area Manager