Increase in Entrepreneurial Activity in Scotland

Some good news at last! Entrepreneurial activity in Scotland has increased over the past two years, with attitudes towards entrepreneurship among young adults recovered to the levels reached prior to the economic downturn.

According to The Global Entrepreneurship Monitor (GEM) 2012 the Scottish estimate for total early-stage entrepreneurial activity (TEA) has matched the average for 20 innovation-driven economies and exceeded the average for Arc of Prosperity countries (Denmark, Finland, Ireland and Norway) for the first time in the GEM series.

The report’s author, Professor Jonathan Levie of the University’s Hunter Centre for Entrepreneurship, said: “The increase in entrepreneurial activity in Scotland over the last two years is an encouraging sign. However, it is mainly due to a jump in low aspiration start-up activity by graduates and we need a ‘Team Scotland’ approach to both raise and fulfill aspirations.

“As a result of the financial crisis, more highly-qualified people have started businesses. Many of these individuals would not ordinarily have considered this option. The challenge now, as the UK economy recovers, is to encourage them to grow their business and not abandon it for a full-time job outside Scotland.”

The findings highlight the need to take advantage of the growth in activity and turn quantity into quality before highly qualified entrepreneurs abandon small-scale businesses for a full-time job. The report also found that attitudes towards entrepreneurship among young adults have recovered to the levels reached prior to the economic downturn. READ MORE