ENTREPRENEURSHIP IN THE EU AND BEYOND
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1 Flash Eurobarometer 354 ENTREPRENEURSHIP IN THE EU AND BEYOND COUNTRY REPORT JAPAN Fieldwork: July 2012 This survey has been requested by the European Commission, Directorate-General Enterprise and Industry and co-ordinated by Directorate-General for Communication. This document does not represent the point of view of the European Commission. The interpretations and opinions contained in it are solely those of the authors. Flash Eurobarometer TNS Political & Social
2 Flash Eurobarometer 354 Entrepreneurship in the EU and beyond Conducted by TNS Opinion & Social at the request of the European Commission, Directorate-General Enterprise and Industry Survey co-ordinated by the European Commission, Directorate-General for Communication (DG COMM Research and Speechwriting Unit)
3 TABLE OF CONTENTS 1. SELF-EMPLOYMENT VS. EMPLOYEE STATUS Preference of status Reasons for wanting to be self-employed PERCEPTIONS OF ENTREPRENEURSHIP Feasibility of becoming self-employed Reasons for unfeasibility Desire to become self-employed Fears when setting up a business EXPERIENCE OF STARTING UP A BUSINESS PERCEPTIONS OF ENTREPRENEURS AND THE ROLE OF EDUCATION Perceptions of entrepreneurs The role of education in entrepreneurship activity
4 1. SELF-EMPLOYMENT VS. EMPLOYEE STATUS 1.1. Preference of status -- While a majority of people in Japan still prefer to work as company employees, there has been a big jump in the number of respondents who say they would prefer not to work at all - Just under a quarter (23%) of respondents in Japan say that if they could choose between different kinds of jobs, they would prefer to be self-employed rather than be employed by a company. This is relatively low compared with the 37% of people who express a preference for self-employment in the EU. A majority (56%) of respondents in Japan say that they would prefer to be an employee a result that more in line with the 58% of people who give this answer at EU level. A fifth of respondents in Japan (20%) say spontaneously that they would prefer not to do either kind of work. Only 2% of people in the EU say this. Since 2009, the data show that more people in the EU now prefer to work as employees (+9 points), with fewer preferring to be self-employed (-8 points). However, the trend is quite different in Japan, where there has been a large decline in the number of people who prefer self-employment (-16 points) and also a small decline in the number who would rather work as company employees (-3 points). Meanwhile, there was a large increase in the number of people who say they would prefer not to do any kind of job (+18 points). 2
5 1.2. Reasons for wanting to be self-employed -- More people in Japan than in the EU say that they favour selfemployment because they would like the freedom to choose the time and place of their work Respondents who previously said that they would prefer to be self-employed than work as an employee were now asked why they would rather be self-employed. Multiple answers were permitted. Over four out of 10 respondents in Japan (45%) say they want the personal independence or self-fulfilment that comes with self-employment. However, this is somewhat lower than the 62% of people who say this at EU level. A third of 10 respondents in Japan (34%) say they would like the freedom to choose the place and time of their work, which is a little higher than the 30% of people who give this answer in the EU. However, only 5% of people in Japan (vs. 16% at EU level) say they are attracted to the idea of self-employment by better income prospects. Relatively small numbers of respondents give other reasons for preferring selfemployment, including the desire to exploit a business opportunity (2% vs. 4%), avoiding the uncertainties of paid employment (1% vs. 3% at EU level), the lack of attractive employment opportunities (4% vs. 2%), wanting to contribute to society (1% vs. 2%), the favourable economic climate (0% vs. 2%), or the fact that friends or family members are self-employed (4% vs. 1%). Just 6% of respondents in Japan (18%) give other reasons for favouring selfemployment, as do 15% of people at EU level. Base: those who said they would prefer to be self-employed (EU27=10082 / JP= 228) 3
6 2. PERCEPTIONS OF ENTREPRENEURSHIP 2.1. Feasibility of becoming self-employed -- Less than a fifth people in Japan think that self-employment is feasible, compared with only three out of 10 people in the EU Respondents were asked whether it would be feasible for them to become selfemployed within the next five years, regardless of whether they would like to be. In Japan less than a fifth of respondents (18%) say that this would be feasible, with 4% saying it would be very feasible and 14% saying it would be fairly feasible. This is relatively low compared with the 30% of people in the EU who think that it would be feasible for them to become self-employed (10% regard it as very feasible, and 20% as fairly feasible). Base: those who are not self-employed (EU27= / JP= 882) Four fifths (79%) of people in Japan feel that self-employment is unfeasible, with 37% considering self-employment not very feasible and 42% regarding it as not feasible at all. At EU level 67% of respondents think it would not be feasible (22% say it is not very feasible, while 45% consider it to be not feasible at all). Compared with 2009, the EU-level results have remained broadly unchanged. However, in Japan, despite the relatively low numbers of people who see selfemployment as feasible, there has been an increase in the proportion of respondents who say this, both in terms of those who consider it to be very feasible (+2 points) and also fairly feasible (+4 points). There was also an increase in the 4
7 number of respondents who regard self-employment as not very feasible (+13 points), with a decline only in not at all feasible category (-20 points) Reasons for unfeasibility -- A fifth of respondents in Japan feel that they lack the necessary resources to become self-employed -- Respondents who said they did not regard self-employment as feasible for them within the next five years were then asked why they did not consider it feasible. Multiple answers were permitted. Roughly a fifth of respondents in Japan (22%) say they do not view selfemployment as a feasible alternative on the grounds that they do not have enough capital or financial resources, which is very much in line with the 21% of people who give this answer in the EU. However, only a tiny minority of people in Japan (1%) feel that the current economic climate is not good for a start-up, which is somewhat lower than the 12% of Europeans who mention this as a factor. However, more respondents in Japan say that they lack the skills to be selfemployed (12% vs. 8% in the EU). Relatively few people in Japan give other reasons for not regarding self-employment as a feasible alternative. Less than one person in 10 says that they have no business idea (4% vs. 7 in the EU), that they would have difficulty reconciling self-employment with family commitments (3% vs. 6%), that they fear the risk of failure and its consequences (1% vs. 5%), and that they are deterred by the burden of red tape (0% vs. 4%). Nearly two-thirds (64%) of the respondents in Japan which is somewhat higher than the EU result (55%) say that they have "other reasons" for not seeing selfemployment as a feasible option. Base: those who said they did not regard self-employment as feasible for them within the next five years (EU27= / JP= 695) 5
8 2.3. Desire to become self-employed -- People in Japan are much less likely than those in the EU to regard selfemployment as a desirable option Respondents were then asked how desirable it was for them to become selfemployed within the next five years. Around a fifth of people in Japan (22%) think that self-employment is desirable, with 5% regarding it as very desirable and 17% seeing it as being fairly desirable. This is relatively low compared with the 32% of respondents in the EU who view self-employment as desirable (11% think it is very desirable, and 21% fairly desirable). Three quarters (75%) of respondents in Japan say that self-employment is not desirable, with 31% seeing it as not very desirable and 44% feeling that it is not at all desirable. 65% of respondents say the same thing at EU level (22% think selfemployment is not very desirable, and 43% say it is not at all desirable). Base: those who are not self-employed (EU27= / JP= 882) 6
9 2.4. Fears when setting up a business -- The lack of guaranteed income is of more concern to people in Japan than to those in the EU when it comes to starting a business Respondents were asked to say which two risks they would be afraid of most if they were to set up a business today. Over three out of 10 respondents in Japan (31%) say they would be most afraid of the risk of going bankrupt if they were to set up a business today, which is lower than the EU result (43%). Only 24% of people in Japan as opposed to 37% of those in the EU say that the risk of losing their property/home would concern them the most. However, more people in Japan than in the EU (42% vs. 33%) say that the prospect of irregular income would make them afraid of setting up a business. Over a fifth (22%) of individuals in Japan (vs. 19% in the EU) also say that they would be wary of the lack of job security. The possibility of suffering a personal failure concerns 16% of people in Japan, and 15% of those in the EU. Roughly one respondent in six in Japan (18%) say they would be afraid of the need to devote too much energy or time to the business (vs. 13% in the EU). 7
10 3. EXPERIENCE OF STARTING UP A BUSINESS -- Less than a fifth of respondents in Japan have started a business or are planning to start one, which is quite low by EU standards Respondents were asked whether they had ever started or taken over a business, or whether they were taking steps to start a business. Less than a fifth of respondents in Japan (17%) say that they have started a business or are making plans to do so. This is somewhat lower than the 23% of people in the EU who give this answer. 79% say that they have never done any of these things, as do 77% of EU respondents. Compared with 2009, there has again been very little change in the EU on this point. However, in Japan there has been a slight decline of 4 points in the number of people who say that they have started a business or are making plans to do so. 8
11 4. PERCEPTIONS OF ENTREPRENEURS AND THE ROLE OF EDUCATION 4.1. Perceptions of entrepreneurs -- People in Japan are less likely than those in the EU to recognise both the positive and the negative aspects of entrepreneurship Respondents were asked whether they agree with a series of statements about entrepreneurship. They were first asked to say whether they agree that entrepreneurs are job creators. Over two-thirds of people in Japan (69%, compared with 87% at EU level) agree that entrepreneurs are job creators. A sixth of respondents (16% vs. 11% at EU level) disagree with this statement. There was no change at EU level between 2009 and 2012 on this question. However, in Japan the level of agreement with the idea that entrepreneurs are job creators declined (-6 points). It is important to note that the level of disagreement also declined (-4 points), with the proportion of respondents who say they don t know increasing substantially (15%, +10 points). Around half of respondents in Japan (53%, compared with 79% at EU level) agree that entrepreneurs create new products and services that benefit all of us. Three out of 10 respondents (30% vs. 18% at EU level) disagree with this statement. There has again been little change at EU level on this point since In Japan the level of agreement fell substantially (-22 points), while the proportion of people who disagree increased (+11 points) and the number who don t know also increased (17%, +11 points). Four out of 10 respondents in Japan (39%, as opposed to 57% of people in the EU, agree that entrepreneurs take advantage of other people s work. Nearly half (46%, vs. 39% across the EU) do not agree that this is the case. The proportion of respondents agreeing with this statement increased substantially in the EU (+8 9
12 points), while declining significantly in Japan (-20 points). Meanwhile, the proportion of people who disagree with the idea that entrepreneurs take advantage of other people s work increased (+15 points), as did the number of respondents who say they don t know (15%, +5 points). Finally, a third of the respondents in Japan (35%, vs. 52% in the EU) agree that entrepreneurs only think about their own pockets. A majority of people in Japan disagree (51% vs. 45% at EU level). The level of agreement on this point declined slightly in the EU (-2 points), while falling substantially in Japan (-8 points). The number of people who do not agree remained constant, though there was again an increase in the number of people who say that they don t know (14%, +7 points) The role of education in entrepreneurship activity -- Respondents in Japan are much less likely to have taken an entrepreneurship course than the average EU respondent Respondents were asked whether they have ever taken part in any course or activity about entrepreneurship, which is defined as turning ideas into action and developing one s own projects. Less than a tenth (9%) of respondents in Japan say that they have taken part in this type of course, which is relatively low compared with the 23% of people who give this response at EU level. 88% say that they have never taken an entrepreneurship course, whereas 76% say this across the EU. 10
13 TECHNICAL SPECIFICATIONS Between the 15 June and the 8 August 2012, TNS Political & Social, a consortium created between TNS political & social, TNS UK and TNS opinion, carried out the survey FLASH EUROBAROMETER 354 about Entrepreneurship. This survey has been requested by the EUROPEAN COMMISSION, Directorate-General Enterprise and Industry. It is a general public survey co-ordinated by the Directorate-General for Communication ( Research and Speechwriting Unit). The FLASH EUROBAROMETER 354 covers the population of the respective nationalities of the European Union Member States, resident in each of the 27 Member States and aged 15 years and over. It has also been conducted in Croatia, Turkey, Iceland, Norway, Switzerland, Israel, Russia, China, Japan, South Korea, India, Brazil and the United States. All interviews were carried using the TNS e-call center (our centralized CATI system), except in Israel, China, India, Japan, South Korea and Brazil. In every country respondents were called both on fixed lines and mobile phones (except in India were the interviews were conducted face-to-face). The basic sample design applied in all states is multi-stage random (probability). In each household, the respondent was drawn at random following the "last birthday rule". TNS has developed its own RDD sample generation capabilities based on using contact telephone numbers from responders to random probability or random location face to face surveys, such as Eurobarometer, as seed numbers. The approach works because the seed number identifies a working block of telephone numbers and reduces the volume of numbers generated that will be ineffective. The seed numbers are stratified by NUTS2 region and urbanisation to approximate a geographically representative sample. From each seed number the required sample of numbers are generated by randomly replacing the last two digits. The sample is then screened against business databases in order to exclude as many of these numbers as possible before going into field. This approach is consistent across all countries. For each country a comparison between the sample and the universe was carried out. The Universe description was derived from Eurostat population data or from national statistics offices. For all countries surveyed, a national weighting procedure, using marginal and intercellular weighting, was carried out based on this Universe description. In all countries, gender, age, region and size of locality were introduced in the iteration procedure. For international weighting (i.e. EU averages), TNS Political & Social applies the official population figures as provided by EUROSTAT or national statistic offices. The total population figures for input in this post-weighting procedure are listed above. TS1
14 Readers are reminded that survey results are estimations, the accuracy of which, everything being equal, rests upon the sample size and upon the observed percentage. With samples of about 1,000 interviews, the real percentages vary within the following confidence limits: Statistical Margins due to the sampling process (at the 95% level of confidence) various sample sizes are in rows various observed results are in columns 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% N=50 6,0 8,3 9,9 11,1 12,0 12,7 13,2 13,6 13,8 13,9 N=50 N=500 1,9 2,6 3,1 3,5 3,8 4,0 4,2 4,3 4,4 4,4 N=500 N=1000 1,4 1,9 2,2 2,5 2,7 2,8 3,0 3,0 3,1 3,1 N=1000 N=1500 1,1 1,5 1,8 2,0 2,2 2,3 2,4 2,5 2,5 2,5 N=1500 N=2000 1,0 1,3 1,6 1,8 1,9 2,0 2,1 2,1 2,2 2,2 N=2000 N=3000 0,8 1,1 1,3 1,4 1,5 1,6 1,7 1,8 1,8 1,8 N=3000 N=4000 0,7 0,9 1,1 1,2 1,3 1,4 1,5 1,5 1,5 1,5 N=4000 N=5000 0,6 0,8 1,0 1,1 1,2 1,3 1,3 1,4 1,4 1,4 N=5000 N=6000 0,6 0,8 0,9 1,0 1,1 1,2 1,2 1,2 1,3 1,3 N=6000 N=7000 0,5 0,7 0,8 0,9 1,0 1,1 1,1 1,1 1,2 1,2 N=7000 N=7500 0,5 0,7 0,8 0,9 1,0 1,0 1,1 1,1 1,1 1,1 N=7500 N=8000 0,5 0,7 0,8 0,9 0,9 1,0 1,0 1,1 1,1 1,1 N=8000 N=9000 0,5 0,6 0,7 0,8 0,9 0,9 1,0 1,0 1,0 1,0 N=9000 N= ,4 0,6 0,7 0,8 0,8 0,9 0,9 1,0 1,0 1,0 N=10000 N= ,4 0,6 0,7 0,7 0,8 0,9 0,9 0,9 0,9 0,9 N=11000 N= ,4 0,5 0,6 0,7 0,8 0,8 0,9 0,9 0,9 0,9 N=12000 N= ,4 0,5 0,6 0,7 0,7 0,8 0,8 0,8 0,9 0,9 N=13000 N= ,4 0,5 0,6 0,7 0,7 0,8 0,8 0,8 0,8 0,8 N=14000 N= ,3 0,5 0,6 0,6 0,7 0,7 0,8 0,8 0,8 0,8 N= % 10% 15% 20% 25% 30% 35% 40% 45% 50% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% TS2
15 ABBR. COUNTRIES INSTITUTES N INTERVIEWS FIELDWORK DATES POPULATION 15+ BE Belgium TNS Dimarso /06/ /06/ BG Bulgaria TNS BBSS /06/ /06/ CZ Czech Rep. TNS Aisa s.r.o /06/ /06/ DK Denmark TNS Gallup A/S /06/ /06/ DE Germany TNS Infratest /06/ /06/ EE Estonia TNS Emor /06/ /06/ EL Greece TNS ICAP /06/ /06/ ES Spain TNS Demoscopia S.A /06/ /06/ FR France TNS Sofres /06/ /06/ IE Ireland IMS Millward Brown /06/ /06/ IT Italy TNS Infratest /06/ /06/ CY Rep. of Cyprus CYMAR /06/ /06/ LV Latvia TNS Latvia /06/ /06/ LT Lithuania TNS LT /06/ /06/ LU Luxembourg TNS Dimarso /06/ /06/ HU Hungary TNS Hoffmann Kft /06/ /06/ MT Malta MISCO International /06/ /06/2012 Ltd NL Netherlands TNS NIPO /06/ /06/ AT Austria TNS Austria /06/ /06/ PL Poland TNS OBOP /06/ /06/ PT Portugal TNS EUROTESTE /06/ /06/ RO Romania TNS CSOP /06/ /06/ SI Slovenia RM PLUS /06/ /06/ SK Slovakia TNS AISA Slovakia /06/ /06/ FI Finland TNS Gallup Oy /06/ /06/ SE Sweden TNS SIFO /06/ /06/ UK United Kingdom TNS UK /06/ /06/ TOTAL EU /06/ /06/ HR Croatia HENDAL /06/ /06/ TR Turkey TNS PIAR /06/ /07/ IS Iceland Capacent ehf /06/ /06/ NO Norway TNS Gallup AS /06/ /06/ CH Switzerland Isopublic /06/ /06/ IL Israel TNS Teleseker /06/ /07/ RU Russia TNS MIC /07/ /07/ US United States TNS Custom Research /06/ /07/ BR Brazil TNS Brazil /07/ /08/ IN India TNS India /07/ /07/ CN China TNS China /06/ /07/ KR South Korea TNS Korea /06/ /07/ JP Japan Research Freeway /07/ /07/ TOTAL /06/ /08/ TS3
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