Entrepreneurship is thriving around the world and entrepreneurs are looked at by society in a positive light.
This was revealed by the 2015 Amway Global Entrepreneurship Report (AGER) inits survey on the state of entrepreneurship and self-employment across the globe.
The 2015 report looks into the key characteristics of entrepreneurs and the entrepreneurial spirit and introduces the Amway Entrepreneurial Spirit Index (AESI). The AESI measures entrepreneurial spirit in three dimensions including desirability, feasibility, and stability against social pressure derived from acclaimed psychologist Icek Ajzen’s Theory of Planned Behavior.
Conducted from April to July, 2015, the survey involved almost 50,000 respondents, aged 14 to 99, in 44 countries who were interviewed in person or by telephone.
The Philippines, however, is not included in the survey.
The study found most entrepreneurs seeking new learning, wanting to enjoy life, and liking to call the shots. On the other hand, they fear failure and sometimes lack confidence in their chances to succeed..
In many countries, organizations and businesses are investing in programs to help entrepreneurs achieve their goals. Attitudes of society towards entrepreneurs are generally positive, with about 40 per cent of respondents expressing willingness to be in business. Leading motivations for going into business is to be one’s own boss and a desire for self-fulfillment.
Entrepreneurial potential remains high.
Two in five respondents (43 percent) could imagine starting a business. Men (47 percent) were considerably more willing than women (38 percent). University degree holders and those under 35 years (each 51 percent) showed the most potential. All this said, however, just 10 percent were currently self-employed, sustaining the entrepreneurial gap of 33 percent from 2014.
The Amway Entrepreneurial Spirit Index measures attitude and potential.
The AESI measures three dimensions that influence a person’s intention to start a business. The average for all countries was 51, calculated as the mean of the three areas measuring desirability, feasibility and stability against social pressure: 55 percent of the average expressed the desire to become an entrepreneur; 47 percent felt prepared for entrepreneurship; and 49 percent would not allow their social networks to dissuade them. Men (54) had higher scores than women (47), and those 35 years scored highest among age groups.
Correlated with AGER results, AESI scores revealed that countries with a higher entrepreneurial spirit exhibited more positive attitudes toward entrepreneurship and higher entrepreneurial potential and rates of self-employment.
Top traits of entrepreneurs: curious, upbeat, in charge.
Respondents believed entrepreneurs “like to learn things” (84 percent), “want to enjoy life” (78 percent) and “like to be in charge and tell others what to do” (75 percent). They also characterize business owners as people who “look for adventures and like to take risks” (70 percent), “think the safety of their country is very important” (70 percent) and “like to stand out and impress other people” (68 percent). Those under 35 years (73 percent) are more convinced that entrepreneurs like to “impress others” than any other age group.
Independence and ideas are valued above all.
The two most compelling factors for starting a business were “independence from an employer, being my own boss” (48 percent) and “self-fulfillment, possibility to realize own ideas” (44 percent), confirming 2014 results. Respondents under 35 years held the strongest belief in “independence” at 53 percent.
It’s noteworthy that all factors to starting a business were less appealing in countries with greater cultural intolerance for uncertainty. Further, in countries with higher economic output, respondents rate self-fulfillment as a much stronger driver for entrepreneurship.
Fear of failure is a continuing obstacle.
Fear of failure was a significant hurdle (70 percent). Men and women were equally fearful and, in most countries, younger people were most afraid. “Financial burdens” (41 percent) and “threat of the economic crisis” (29 percent) were the factors feeding this fearfulness most.
Positivity prevails, again.
75 percent held positive attitudes toward entrepreneurship. In 2015, 81 percent of respondents under 35 years were the most optimistic. Men and women shared similar positivity, at 76 and 74 percent respectively.
“The entrepreneurial spirit is clearly and convincingly alive around the world,” adds DeVos. “The desire to start a business is there, and now we must use these insights to gain more cultural awareness and acceptance of the economic and social impacts of business owners provide.”
Amway partner and Chair for Strategy and Organization at Technische Universität München (TUM) Prof. Dr. Isabell M. Welpe agrees. “The positive attitude and potential for entrepreneurship remains high globally, especially among younger generations. Yet a mere 10 percent of respondents are self-employed. This research sheds new light on how to close this gap of unused entrepreneurial potential.”
The 2015 report was conducted by Amway in collaboration with Chair of Strategy and Organization of the School of Management, TUM in Munich, Germany.
The survey is now on its sixth year.
Amway is the leading direct-selling company in the world.
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