Self-employment of older people in eastern EU countries dr Łukasz Sienkiewicz Social Situation Monitor Seminar on Self-employment Brussels 21 May 2015
Introductory remarks Relatively weak evidence base on self-employment of older people in eastern EU countries, Different patterns/paths of self-employment of (currently) older people in eastern EU countries as compared to EU15, Social/cultural/contextual differences of individual entrepreneurship / self-employment, Diversification of self-employment issues/problems in NMS.
Self-employed in eastern EU countries
Scale and structure of self-employment (and micro-enterprises) in eastern EU countries Business demography, size clas: zero (from 2004 onwards, NACE Rev. 2) EU28 total 2012: 14 240 398 1,400,000 1,200,000 1,000,000 800,000 600,000 2008 2009 2010 2011 2012 400,000 200,000 0 Bulgaria Czech Republic Estonia Latvia Lithuania Hungary Poland Romania Slovenia Slovakia Source: EUROSTAT 19.05.2015
Scale and structure of self-employment (and micro-enterprises) in eastern EU countries Business demography, size clas: from 1 to 4 employees (from 2004 onwards, NACE Rev. 2). EU28 total 2012: 8 275 279 600,000 500,000 400,000 300,000 200,000 2008 2009 2010 2011 2012 100,000 0 Bulgaria Czech Republic Estonia Latvia Lithuania Hungary Poland Romania Slovenia Slovakia Source: EUROSTAT 19.05.2015
Scale and structure of self-employment (and micro-enterprises) in eastern EU countries Business demography, size clas: from 5 to 9 employees (from 2004 onwards, NACE Rev. 2). EU28 total 2012: 1 593 315 140,000 120,000 100,000 80,000 60,000 2008 2009 2010 2011 2012 40,000 20,000 0 Bulgaria Czech Republic Estonia Latvia Lithuania Hungary Poland Romania Slovenia Slovakia Source: EUROSTAT 19.05.2015
Scale and structure of self-employment (and micro-enterprises) in eastern EU countries Business demography, size clas: 10 or more employees(from 2004 onwards, NACE Rev. 2). EU28 total 2012: 1 533 471 120,000 100,000 80,000 60,000 40,000 2008 2009 2010 2011 2012 20,000 0 Bulgaria Czech Republic Estonia Latvia Lithuania Hungary Poland Romania Slovenia Slovakia Source: EUROSTAT 19.05.2015
Motivations for starting own economics activity/ becoming self-employed in eastern EU countries
Motivation for early-stage entrepreneurial activity in the GEM economies in 2014, by region Source: Global Entrepreneurship Monitor 2014
Perception of social values toward entrepreneurship in the GEM economies in 2014, by geographic region (% of population aged 18-64). Source: Global Entrepreneurship Monitor 2014
Individual attributes in the GEM economies in 2014, by geographic region (% of population aged 18-64). Source: Global Entrepreneurship Monitor 2014
Percentage of 18-64 population, new business ownership rate, Eastern EU countries, 2004, 2008-2014. Source: Global Entrepreneurship Monitor, http://www.gemconsortium.org 19.05.2015
Percentage of 18-64 population, entrepreneurial intention (intention to start a business within three years), Eastern EU countries, 2004, 2008-2014. Source: Global Entrepreneurship Monitor, http://www.gemconsortium.org 19.05.2015
Percentage of 18-64 population, perceived opportunities (good conditions to start a firm in the area where they live), Eastern EU countries, 2004, 2008-2014. Source: Global Entrepreneurship Monitor, http://www.gemconsortium.org 19.05.2015
Change in real employer businesses, total economy (NACE Rev.2 Sections A to U), Q4-2008 to Q4-2011 (1) (%) Source: Entrepreneurship determinants: culture and capabilities, 2012
Necessity vs opportunity driven entrepreneurship In Poland: entrepreneurship widely regarded as a career choice relatively high share of Poles declaring to start a business in the following years 2014-2017, 17.3% vs 13.5% in the EU on average more necessity-driven entrepreneurship (selfemployment, artificial boost of entrepreneurial intentions indicator) relatively weak incidence of opportunity-driven entrepreneurship 32.7% vs 47% in the EU
Level of opportunity- and necessity-driven entrepreneurship in Poland in 2011-2013 (%) Source: Global Entrepreneurship Monitor Poland 2013
Entrepreneurship in Poland, 2013 Source: 2014 SBA Fact Sheet POLAND
Quality of self-employment The relationship between quality of life and the age of novice entrepreneurs in Poland Likert scale: 1 strongly disagree.. 5 strongly agree *Stress the higher the variable the lower the stress level Source: Global Entrepreneurship Monitor Poland 2013
Quality of self-employment The number of taxpayers, who gain income only from one sources of revenue increased in 2013 in relation to civil-law contracts (by 57.8 thousand as compared to 2012) and self-employment (by 8.8 thousand as compared to 2012) see table below.
Support to start-up/selfemployment in eastern EU countries
While there is a growing evidence of self-employment support measures for the youth (especially under Youth Guarantee) no specific support offered to those 50+ in eastern EU countries Source: EEPO Review: Start-up incentives, September 2014
Source: EEPO Review: Start-up incentives, September 2014
Source: EEPO Review: Start-up incentives, September 2014
Contact: lukasz.sienkiewicz@iarp.edu.pl Institute for Labour Market Analyses 10/5 Bagatela Str 00-585 Warsaw Poland biuro@iarp.edu.pl iarp.edu.pl