Europeans' caution can affect enterprise - report
Europeans want the best of both worlds according to the latest report released by Eurobarometer on entrepreneurship - to work for themselves but not to have to take the risk of starting their own business. The conclusion is drawn from the latest Eurobarometer report on entrepreneurial attitudes in Europe and the USA. The report was discussed at the recent informal conference of EU industry ministers in Manchester. One of the key elements pervading the report was the difference in attitude towards risk between Europeans and Americans. Some 45 per cent of Europeans would not start a business if they felt that there was a chance of it failing - the comparable figure for Americans (USA) is just 27 per cent. However, risk aversion is not at the same level across the board in Europe. Respondents in Ireland, younger people and those with a more extensive education were all more prepared to take entrepreneurial risks than the average. One of the reasons that Europeans feel this way is probably linked to their impression of setting up a business. Respondents from every Member State with the exception of Finland felt that it was 'somewhat to very difficult' to set up a business. Europeans see difficulties in obtaining sufficient financing and information to set up a business. The notable exception to both of these responses is the Netherlands, whose respondents generally did not feel that either of these was true. The Netherlands also proved the exception in the case of administrative burdens, which proved to be the only country which felt that these were less burdensome than the USA. Attitude to the general economic climate is also an important factor - generally Europeans had a less favourable impression of this (when asked in autumn 2000) than Americans. Some 60 per cent of Europeans did not feel that there was an economic climate favourable to setting up a business, while the comparable figure from the USA was 40 per cent. However, big differences emerged again, with the attitude being more upbeat in the Netherlands, Ireland, Finland and Austria. Finally, one of the main dividing factors between Europe and the USA, and also between European countries, was the desire to be self-employed. Some 69 per cent of Americans would prefer to be self-employed, while the figure for Europe averages 51 per cent. But the average is made up of stark differences. Those interested in the opposite, dependent employment, range from 68 per cent in Finland to 28 per cent in Greece. In fact all three Scandinavian Member States showed a majority in favour of dependent employment, as well as all three Benelux countries. Germany and the UK respondents were split on the issue and all other Member States were in favour of self-employment.