Entrepreneurs speak out - European Union Focus
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8 Februarie 2012 |
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ERNST & YOUNG S.R.L. |
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The perception barometer
This study focuses on the entrepreneurship environment of G20 countries through the lens of five fundamental enablers: entrepreneurship culture; education and training; access to funding; regulation and taxation; and coordinated support.
Through these enablers, we explore the climate for entrepreneurs in the G20 countries and the likely direction things will take.
Our original approach is based on:
- Quantitative economic indicators
- The opinions of entrepreneurs on the progress and impact of specific enablers
Our perception barometer sums up progress as evaluated by morethan 1,000 entrepreneurs during the last five years, using fourscore ranges.
The analysis of these indicators and opinions also highlights how entrepreneurs’ perceptions may differ from the latest economic figures; a divergence that may be due to cultural bias, derivative ideas or lack of information. Red tape can also present challenges when it comes to accessing sources of funding.
These gaps in perception raise a call to action for governments to tackle these specific issues.
EU - Still some cultural barriers to tackle
Overall, European Union (EU) respondents have signaled that they are satisfied with their conditions. Indeed, one-third of them rated the EU as the best place for entrepreneurship in the G20. Satisfaction at this level is only matched by that of Canada, the United States and Japan.
The enthusiasm of EU entrepreneurs for their background environment, combined with their negative sentiment regarding recent years’ progress in funding channels and regulation, suggests a divide among EU members. Conditions for higher-income members have plateaued at a very high level. Unlike the average G20 respondent, EU respondents are almost uniformly negative about funding channels and regulatory changes. They are under-supported and under-coordinated compared with their mature market G20 peers. Interestingly, they also report a lower incidence of supportive cultures for entrepreneurship.
What is really impressive in these figures, though, are the performance indicators for the EU as a whole, reflecting the experience of new and old members alike. The data here shows dramatic improvements, whether in business regulations or labor flexibility. This is a welcome result for those who have advocated EU membership as a modernization tool, and for those who see the EU as a force for reforms and overall policy improvements.
As the EU has expanded to welcome new members, the European Commission has become even more consensus-driven in its legislative proposals, and this trend is likely to continue as new members join. However, the increasing complexity of issues under negotiation — particularly in the spheres of finance and security — could see the pace of EU decision-making slow. Paradoxically, this could prompt Member States and EU institutions to innovate to find new ways of achieving consensus faster and with greater effectiveness. While this makes for some uncertainty in terms of how the environment for entrepreneurs will develop, the pace of further positive change may take some by surprise.(1)
(1) The EU entrepreneurs’ perception survey is a composite of nine EU countries (10 interviews each in Spain, Luxembourg, Belgium, the Netherlands and Portugal together with 50 interviews conducted in each of Germany, France, Italy and the UK). Unless otherwise noted, other EU-level data in this report presents sums and averages for the EU’s 27 members, minus Malta. Because the data includes several new entrants to the Union, there is a big div ergence between key performance indicators for the EU (which reflect averages of all 27 members) and the perceptions (which reflect only the high-income EU members).
(2) Unweighted average of 27 EU members.
