EUROPEAN ENTREPRENEURSHIP A survey of Amway Europe November

EUROPEAN ENTREPRENEURSHIP A survey of Amway Europe November 5 th, 2010

EUROPEAN ENTREPRENEURSHIP As an international company with independent business owners in 26 European markets we want to find out more about people’s attitude towards self-employment. The insights we gained in over 12. 000 interviews conducted in eleven countries are now available and give information on reasons for starting-up a business as well as possible obstacles that hinder entrepreneurship. Moreover, we found out which models of self-employment are currently most favored across Europe. Michael Meissner Vice President Corporate Affairs Amway Europe

KEY FINDINGS Entrepreneurial spirit prevails in Europe. Self-employment enjoys a good reputation throughout Europe. More than two thirds of respondents show a positive attitude towards self-employment. Above all, self-employment needs to be easy. For the polled Europeans easy ways of self-employment like “solo selfemployment“ and “self-employment as a secondary occupation” are the most attractive ones by far. Europeans are not lacking business ideas but money and courage. Lack of starting capital and fear to fail are perceived being the biggest hurdles to becoming self-employed. Yet only one out of five respondents sees the lack of a business idea to be an issue.

SURVEY DESIGN In 11 countries over 12. 000 respondents were interviewed on the subject of self-employment. The fieldwork was conducted from August 27 th to October 11 th 2010. The poll was carried out by the “Gesellschaft für Konsumforschung” (Gf. K) in Nuremberg, Germany upon the request of Amway Europe. The survey’s results are representative of the selected countries’ populations. Fieldwork: August to October 2010 Sample: 12. 510 women and men aged 14 and over Countries: Austria, Denmark, France, Germany, Great Britain, Italy, Poland, Russia, Switzerland, Turkey, Ukraine Method: Face-to-face/telephone interviews Institute: Gf. K Nuremberg, Germany Scientific Advisor: Entrepreneurship Center of the University of Munich (LMU)

RESULTS 2010

Question 1: What is your general attitude towards self-employment? Which of the following statements do you agree with? • • In Europe self-employment enjoys a very good reputation. Throughout the 11 countries in which the survey was conducted, two thirds of the respondents (69 percent) show a positive attitude towards self-employment. Attitude towards entrepreneurship is most favorable in Denmark, France and Great Britain, whereas Ukraine, Austria and Germany show lowest approval ratings.

Question 1: What is your general attitude towards self-employment? Which of the following statements do you agree with? • • There is big start-up potential in Europe. In average about half of the respondents with a positive attitude towards self-employment can image to start up their own business. Entrepreneurial spirit is especially widespread in Turkey, Switzerland Italy.

Question 1: What is your general attitude towards self-employment? Which of the following statements do you agree with? Respondents aged 14 -29 years • • • 14 -29 year-old respondents mark a new generation of entrepreneurs. On average 79 percent of those entering the workforce say their general attitude towards selfemployment is positive. Above that, every second respondent under the age of 30 (49 percent) can imagine starting up their own business.

Question 2: Suppose you were starting your own business. Which kind of self-employment model would you prefer? • Self-employment as a secondary occupation is the most favored model of self-employment in Europe. • This model of self-employment is most attractive for respondents in the German-speaking countries as well as Poland.

Question 3: In your opinion, which of the following aspects appeal to you as reasons to start up your own business? • • The polled Europeans name the two non-monetary aspects “independence from an employer” (40 percent) and “self-fulfillment” (35 percent) as the most important reason to start up a business. To one third of the respondents, second income prospects would work as an appeal to turn to self-employment.

Question 3: In your opinion, which of the following aspects appeal to you as reasons to start up your own business? Better compatibility of family, leisure time and career Second income prospects Self-fulfillment, possibility to realize own ideas Return to job market, Independence from an employer, alternative to being my own boss unemployment None of the above Austria 21 33 32 40 12 29 Denmark 28 34 61 51 21 10 France 29 32 38 48 19 11 Germany 28 52 42 49 20 11 Great Britain 19 15 27 38 8 22 Italy 16 26 33 38 12 8 Poland 21 41 33 42 15 15 Russia 17 33 21 30 19 19 Switzerland 31 44 50 54 16 5 Turkey 14 25 24 35 14 14 Ukraine 11 39 27 16 11 22 * Multiple answers possible

Question 4: In your opinion, which of the following aspects are obstacles to becoming self-employed? • • • The polled Europeans perceive lack of starting capital to be the biggest hurdle when it comes to self-employment. Agreement with this factor is the highest throughout all eleven countries. Besides that, in eight countries “fear to fail” is among the three most frequently perceived obstacles to selfemployment. However respondents do not feel like they are short on business ideas. Also lack of public funding or advice (e. g. by public institutions) are perceived to be smaller hurdles to starting-up a business. There is no nation that estimates obstacles to starting-up a business higher than the Germans. In contrast, respondents in Great Britain find themselves least influenced by possible hurdles.

Question 4: In your opinion, which of the following aspects are obstacles to becoming self-employed? * Lack of business idea Lack of starting capital Lack of public funding / public support Lack of advice (e. g. by public institutions) High Lack of administrative economic difficulties know-how None of Fear to fail the above Austria 19 52 21 16 33 30 39 20 Denmark 31 45 21 21 30 28 29 16 France 19 47 19 19 33 24 39 12 Germany 37 71 33 25 49 52 58 6 Great Britain 16 38 14 11 10 16 27 24 Italy 11 58 23 10 32 9 40 6 Poland 29 48 15 16 32 24 41 17 Russia 16 58 13 7 18 26 22 17 Switzerland 22 66 23 18 32 26 49 5 Turkey 10 51 32 3 5 21 12 19 Ukraine 15 61 19 5 19 18 16 18 * Multiple answers possible

Question 5: Suppose you were starting your own business. Which model of self-employment would most likely appeal to you? • • On average 46 percent of polled Europeans favor solo self-employment without employees as an easily applicable way of entrepreneurship. Solo self-employment is most appealing to people in Italy, France, and Germany

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