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This item was published during the term of a previous administration that ended in April 2007

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Entrepreneurship on the up in Scotland

24/02/2004

Scotland's level of entrepreneurial activity is improving, according to a report published today by Strathclyde University.

The Global Entrepreneurship Monitor survey shows:

- Total entrepreneurial activity (TEA) in Scotland has increased from 4.6 per cent in 2002 to 5.5 per cent in 2003.
- Scotland has moved from the bottom TEA band to the middle band, alongside countries such as France, Germany, Spain and Ireland.
- Attitudes to entrepreneurship have improved, with less fear of failure - this has declined from 36 per cent to 30 per cent, and is now slightly below the UK level.
- Scottish universities created 7.2 'spin-out' companies per $100 million dollars of research income (2001 figures), above the UK, US and Canada.

Speaking at a Scottish Chambers of Commerce lunch in Edinburgh, Enterprise and Lifelong Learning Minister Jim Wallace said:

"This is a welcome improvement in entrepreneurial activity, particularly as the rise is mainly due to so-called 'opportunity entrepreneurship' - those who start up businesses to exploit unique market opportunities.

"The report's authors rightly highlight the demographic challenge to the future health of the Scottish economy. Work underway through the Executive's Fresh Talent initiative, which the First Minister will outline tomorrow, is tackling this challenge head-on.

"It is very encouraging to see a big change in attitudes towards entrepreneurship, and a decline in those who cite fear of failure as a reason for not going into business. Scotland's long term economic success depends on fostering a positive, entrepreneurial culture where people are prepared to have a go and take responsible risks.

"On spin-outs, we are up there with the US and Canada for the numbers of companies created and are actually outperforming them based on research income.

"We have now moved into the middle tier for entrepreneurial activity - but creating a Smart, Successful Scotland means we must continue to aim for the top."

The GEM results for Scotland are available from the Hunter Centre for Entrepreneurship, Strathclyde University. The UK TEA rate is 6.4 per cent.

On Attitudes towards Entrepreneurship, the number of people in Scotland who said they knew an entrepreneur has risen from 21 per cent to 30 per cent. Those who expect to start a business in the next three years is 6.7 per cent, below the UK average of 8 per cent.

Page updated: Saturday, July 17, 2004