Scottish Government

4 Doers

4.1 This section looks at those who own or part-own their own business or are self-employed (including those who run their own business as a sideline to their main employment activities).

Type of Doer

4.2 Almost two-thirds (62 per cent) of Doers describe being self-employed as their main activity, which is consistent with the proportion in 2003 (65 per cent in England). The proportions in England are very similar.

Chart 8: Type of Doer

4.3 In comparison to 2003 there are more Does who describe owning a business as their main activity (up from 9 per cent to 12).

How Doers became entrepreneurs

4.4 The majority of Doers who claim to own businesses have started their business from scratch (78 per cent), as opposed to inheriting it (12 per cent) or buying into an existing business (6 per cent). Similar proportions are seen in England, except that in Scotland a higher proportion inherit their businesses (7 per cent in England).

4.5 Before they acquired their current main business, just 13 per cent of Doers in Scotland had a previous business concern or were self-employed (8 per cent self-employed, 4 per cent owned a business, 1 per cent part-owned a business). The majority of Doers were previously working full-time as an employee (65 per cent - 7 percentage points higher than in England), whilst 8 per cent were in education or training. For 73 per cent, their current business is the first they have ever owned.

Motivations for Doers

4.6 As was the case for Thinkers, Doers were asked to agree or disagree with a number of statements concerning their motivations for becoming entrepreneurs. Firstly, we examine the 'pull' motivations.

'Pull' motivations

Table 11: Pull motivations for Doers

Base = All Scotland Doers (2005 n =228; 2003 n = 217)

4.7 The key pull motivations of Doers have changed very little since 2003; freedom to adopt their own approach, the chance to prove themselves, the desire to be their own boss and wanting to make more money than before remain the most frequently cited motivations. None of the changes amongst Doers have changed significantly since 2003, and the 2005 figures in Scotland are very similar to those in England.

4.8 In comparison to Thinkers, Doers tend to cite fewer motivations for wanting to be in business. In particular they are less likely to say that social or environmental concerns were motivations, but are more likely to state that continuing a family tradition was a motivation.

4.9 Thirty per cent of Doers in Scotland have set up their businesses or become self-employed in the last two years ('Newer Doers'). Among these people the motivations for starting businesses are broadly similar to those who started out longer ago, with some exceptions:

• Newer Doers are less likely to have 'wanted to be my own boss' (67 per cent of Newer Doers agree)
• New Doers are less likely to have 'wanted to continue a family tradition (15 per cent of Newer Doers agree)
• New Doers are more likely to have 'wanted to make an idea or innovation happen' (55 per cent of Newer Doers agree)
• Newer Doers are more likely to have 'wanted to do my line of business better than my previous employer' (42 per cent of Newer Doers agree)

4.10 Newer Doers are no more likely to have been motivated by social or environmental concerns as Older Doers.

'Push' motivations

4.11 Dissatisfaction in a previous job remains a strong 'push' motivation for wanting to start a business, but other economic factors are less prevalent, especially in comparison with the 2003 survey. The one statistically significant change since 2003 is that fewer people claim they are Doers because they had previously been out of work. This suggests that necessity entrepreneurship in Scotland is declining and, indeed, unemployment has been falling over the period between the two surveys.

Table 12: Push motivations for Doers

Base = All England Doers (n=2007). Figures in bold are statistically significant changes

4.12 Among the Newer Doers, however, being unable to obtain regular suitable paid employment was a much greater motivation (29 per cent agreeing) than is the case for Older Doers. Therefore, it seems that whilst unemployment may have been a greater motivation prior to 2003, many of the Newer Doers have not been able to get the jobs they wanted in the meantime.

4.13 As for Thinkers, 'pull' factors appear to be stronger than 'push' factors.

Geographical scope

4.14 Seventy-eight per cent of businesses across Scotland conduct trade within their local area. Just over a third (35 per cent) trade in other parts of the UK, whilst 20 per cent trade internationally. This contrasts with England where fewer business owners work within the local area.

Table 13: Where Doers trade

Base = All Doers. NB: Multiple answers possible

Improving awareness of enterprise

4.15 Doers were asked whether their business has been involved in improving people's awareness of running a company or business in the last 12 months (such as conducting school visits, mentoring or through schemes such as Young Enterprise, The Prince's Trust or Business Dynamics).

4.16 In total, 16 per cent of Doers in Scotland said that their business had been involved in such a scheme, whilst 83 per cent had not (1 per cent were unsure). These figures did not vary significantly by the age of a business. Even amongst businesses that have been trading for less than two years, 19 per cent say that they have been involved in such a scheme.

4.17 Figures do vary, however, according to whether the business is a company, partnership or sole proprietorship. 26 per cent of companies are involved in one of these schemes, compared to just 14 per cent of partnerships and sole proprietors.

4.18 In England there is a similar story with 15 per cent of Doers saying their business has been involved in such a scheme in the last 12 months.