Global Entrepreneurship Monitor 2007 Wales Executive Summary Report
18th Mar 2008
This report details the results of the 2007 Global Entrepreneurship Monitor (GEM) survey for Wales
This year’s report is the most comprehensive study ever of entrepreneurship in Wales, and includes a number of special sections on informal investment, enterprise and the welsh language, enterprise education, home-based entrepreneurship, family businesses in Wales, serial and portfolio entrepreneurship, business closures and entrepreneurship within the deprived areas of Wales.
According to one of the authors, Professor Steve Hill of the University of Glamorgan Business School, whilst there has been little change in overall entrepreneurial activity in Wales over the last four years, the study demonstrates that there is still much to be done to support enterprise within Wales.
“The GEM study shows that entrepreneurial activity has levelled off in Wales since 2003, although this masks the considerable differences within certain groups within the Welsh adult population.
“For example, entrepreneurial activity amongst men is twice that for women in 2007, and represents a slight decline since 2006 and further widens the gap between male and female enterprise rates in Wales.
“If more focused programmes could increase female entrepreneurship rates to that of the highest regional rates for the UK, then this would imply an additional 11,000 female entrepreneurs per annum involved in starting and managing a new business in Wales”.
Professor Dylan Jones-Evans of the Centre for Advanced Studies at Cardiff University added “GEM studies have consistently shown that those with lower household incomes and low qualifications are less likely to be involved in early stage entrepreneurial activity. This year’s study also examined whether there is a link between the level of deprivation across Wales and the level of entrepreneurial activity.
“The study shows that the most deprived areas of Wales not only have much lower levels of entrepreneurial activity than more prosperous areas, but that there is a long term trend of lower levels of business ownership in these communities. This suggests that enterprise policies have, to date, not acted as a catalyst to regenerate the poorer areas of Wales”.
The GEM report shows that one the key reasons for this is the negative attitudes towards entrepreneurship by adults in these areas. This is due to lower levels of social contact with entrepreneurs, perception of good start-up opportunities and, most importantly, perception of possessing start-up skills.
To address this enterprise deficit, a dedicated programme of training, advice and support should be available to help increase the entrepreneurial intention and activity rates in the more deprived areas of Wales. Such interventions could, if it brought the most deprived areas up to the current Welsh average for entrepreneurial activity, create around 4,000 new firms every year in the poorest communities.
