Entrepreneurial spirit alive and well, says study

ADA, Michigan—What country has the highest entrepreneurial spirit? Which characteristics do people associate with entrepreneurs? And how do these manifest across countries and cultures?

The search for the answers led to the issuance of the 2015 Amway Global Entrepreneurship Report (AGER).

Now on its sixth year, this research takes the public pulse of the state of self-employment around the world.

The 2015 AGER delves into the key characteristics of entrepreneurs and the entrepreneurial spirit and introduces the Amway Entrepreneurial Spirit Index (AESI).

The AESI measures entrepreneurial spirit in three dimensions including desirability, feasibility, and stability against social pressure derived from acclaimed psychologist Icek Ajzen’s Theory of Planned Behavior.

Important research

“Entrepreneurs are shaping the global economy,” says Amway President Doug DeVos. “Through AGER, we’re exploring their motivations and mind-set to ultimately create a more supportive world for entrepreneurs to start up, succeed and sustain their own businesses. The AESI adds new depth to this important research.”

The first survey was launched in 2010 as the Amway European Entrepreneurship Report, then expanded worldwide with the 2013 AGER, encompassing 24 countries. The 2015 report spans 44 countries, with personal and telephone interviews conducted with nearly 50,000 men and women aged 14-99.

The latest report shows that the entrepreneurial potential remains high.

Two in five respondents (43 percent) could imagine starting a business. Men (47 percent) were considerably more willing than women (38 percent).

University degree holders and those under 35 years (each 51 percent) showed the most potential.

All this said, however, just 10 percent were currently self-employed, sustaining the entrepreneurial gap of 33 percent from 2014.

Three dimensions

The AESI measures three dimensions that influence a person’s intention to start a business.

The average for all countries was 51, calculated as the mean of the three areas measuring desirability, feasibility and stability against social pressure: 55 percent of the average expressed the desire to become an entrepreneur; 47 percent felt prepared for entrepreneurship; and 49 percent would not allow their social networks to dissuade them.

Men (54) had higher scores than women (47), and those 35 years scored highest among age groups.

Correlated with AGER results, AESI scores revealed that countries with a higher entrepreneurial spirit exhibited more positive attitudes toward entrepreneurship and higher entrepreneurial potential and rates of self-employment.

Respondents believed entrepreneurs “like to learn things” (84 percent), “want to enjoy life” (78 percent) and “like to be in charge and tell others what to do” (75 percent).

They also characterize business owners as people who “look for adventures and like to take risks” (70 percent), “think the safety of their country is very important” (70 percent) and “like to stand out and impress other people” (68 percent). Those under 35 years (73 percent) are more convinced that entrepreneurs like to “impress others” than any other age group.

Independence and ideas are valued above all.

The two most compelling factors for starting a business were “independence from an employer, being my own boss” (48 percent) and “self-fulfillment, possibility to realize own ideas” (44 percent), confirming 2014 results. Respondents under 35 years held the strongest belief in “independence” at 53 percent.

It’s noteworthy that all factors to starting a business were less appealing in countries with greater cultural intolerance for uncertainty. Further, in countries with higher economic output, respondents rate self-fulfillment as a much stronger driver for entrepreneurship.

Echoing 2013 results when AGER first posed this question, the fear of failure remained a significant hurdle (70 percent).

Men and women were equally fearful and, in most countries, younger people were most afraid. “Financial burdens” (41 percent) and “threat of the economic crisis” (29 percent) were the factors feeding this fearfulness most.

Positive attitudes

Affirming 2014 results, 75 percent held positive attitudes toward entrepreneurship.

In 2015, 81 percent of respondents under 35 years were the most optimistic. Men and women shared similar positivity, at 76 and 74 percent respectively.

“The entrepreneurial spirit is clearly and convincingly alive around the world,” adds DeVos. “The desire to start a business is there, and now we must use these insights to gain more cultural awareness and acceptance of the economic and social impacts of business owners provide.”

Amway partner and Chair for Strategy and Organization at Technische Universität München (TUM), Prof. Dr. Isabell M. Welpe, agrees. “The positive attitude and potential for entrepreneurship remains high globally, especially among younger generations. Yet a mere 10 percent of respondents are self-employed. This research sheds new light on how to close this gap of unused entrepreneurial potential.”