Oracle Capital Group launches The Global Entrepreneurial Report
• India the most entrepreneurial country globally
• Ireland shrugs off austerity as Europe’s most entrepreneurial country
• UK & Germany lag far behind with lower tolerance for risk
India is the global leader for entrepreneurism according to the Global Entrepreneurial Report published today by Oracle Capital Group, the global independent multi-family office and wealth consultancy. At 7th Ireland is Europe’s most entrepreneurial country, with the UK appearing 28th in the entrepreneurial measure.
The report presents a ranking measure of entrepreneurism in 33 major industrial nations and emerging economies, measuring the opinions, attitudes, experiences and activity that contribute to entrepreneurism, by looking at factors such as “perception of entrepreneurs”, “attitude to risks involved in starting a new venture”, “fear of failure”, “willingness to risk personal finance” and “national levels of entrepreneurial activity”, amongst others.
The findings provide a comparative study of factors driving and discouraging entrepreneurism in these economies versus the impact of these trends on the growth of national economies. The report also provides data on key aspects of wealth development and distribution such as governmental support for entrepreneurship, as well as the attitudes of entrepreneurs to emigrating or remaining in their country of origin.
Key findings include:
• Developing countries rank best for entrepreneurism
• The strong correlation between growth of personal and national wealth in countries where entrepreneurism is high
• A growing number of High Net Worth individuals come from ‘entrepreneurial’ countries
• Higher proportion of entrepreneurial activity in emerging economies, driven by necessity, despite these countries being more difficult to do business in
• More than half of the world’s richest 1,000 individuals come from the top ten entrepreneurial countries
• One of the biggest inhibitors to entrepreneurism is legislation and red tape
• Wealthy individuals from the most entrepreneurial countries tend to remain in their homelands
Headline Performance: The Entrepreneurialism Measure
1st – India tops the list of most Entrepreneurial countries. It scores particularly highly on feasibility, experience, desirability, willingness to self-fund, low failure rates and high early stage business activity.
2nd – Turkey, in common with most of the other developing economies scores well on attitude to risk, low fear of failure, desire, willingness to self-fund and early stage business activity.
3rd – USA is the only large developed economy to appear in the top ten. It scores particularly highly on experience, early stage business activity and (lack of) fear of failure.
7th – Ireland, (Europe’s best performer) scores well for the image of entrepreneurs. It also scores well for prior experience and for early stage business activity.
28th – UK scores towards the lower end of the Entrepreneurism Measure along with Japan and other developed European economies such as Germany and Belgium. In common with these other countries, it scores towards the lower end for attitude to risk, desire and willingness to self-fund.
Commenting on the results Martin Graham, Chairman of Oracle Capital Group, said:
“The report is a valuable insight into the significance of entrepreneurial contribution to the growth of national economies and underscores the importance of businesses receiving support at government level. The striking results for emerging economies are a positive indicator of ongoing market development and growth in these regions.
“Oracle Capital Group, founded by entrepreneurs, has a unique understanding of the motivations and wealth management needs of this developing generation of wealthy entrepreneurs. Our strong and close client relationships importantly extend to ensuring we understand the socio economic backdrop of the regions in which they have created their wealth. These findings match clear trend we are seeing amongst our client base reflecting the significant rise of ‘new’ wealth originating from emerging markets.”
The Global Entrepreneurial Report – Methodology
The measure presented in this report utilises data from the European Commission “Flash Eurobarometer 354: ENTREPRENEURSHIP IN THE EU AND BEYOND” publication and the Global Entrepreneurship Monitor (GEM) programme. These sources gather together data concerning business activity, opinions and attitudes related to entrepreneurism using large-scale surveys of national populations (however, they do not provide a unified comparative measure across countries).
The Entrepreneurism Measure presented here groups the data from these sources under nine themes, representing different aspects of entrepreneurism. Countries are ranked on each theme and the overall Entrepreneurism Score is represented by the sum of the individual theme rankings for each country. More information on the Entrepreneurism themes and how countries score for each theme is available in the appendix to this report.
A full copy of the report can be found here http://orcap.co.uk/the-global-entrepreneurial-report/.