Entrepreneurship Exchange News Updates
EE: Creating a simple, visible, and connected youth entrepreneurship ecosystem for Wales
October 2022 - December 2022
The start of October saw the launch of the Global Entrepreneurship Monitor Wales Report 2021 report that presents a summary of the headline results and key themes arising from the GEM survey in 2021 as well as an analysis of the nineteen years of GEM data (2002-21) There is a wealth of interesting statistics doted throughout the report for those wanting evidence to support their practices.
Key highlights of the report:
- Rate of total early-stage entrepreneurship (TEA) in Wales in 2021 was 10.3%: significantly higher than the 2020 rate of 6.5%
- 70% early-stage entrepreneurs in Wales most strongly motivated by entrepreneurship to earn a living as jobs are scarce
- Across age groups in Wales, the TEA rate of those aged 55-64 was significantly lower than those aged up to 35-44 years old.
- 43.0%)of non-entrepreneurs’ state that they have the skills, knowledge and experience to start a business
- 45.2% know an entrepreneur that has started a business within the past two years.
- Fear of failure rates are similar in 2021 than in 2020 - 55.5% of those in Wales that identified start-up opportunities stated that fear of failure would prevent them from starting a business
- Despite the increase in the share of non-entrepreneurs viewing good opportunities for start-up compared to 2020, the main difference between Wales and the UK in 2021 is the significantly lower share of those in Wales who believe there are good start-up opportunities in their area in the next six months, 40.8% in Wales versus 47.7% UK.
- Continuing the trend of recent years male and female TEA rates are not significantly different in Wales, need to see a longer run of data before we can celebrate the closing of the gap.
- At 9.8% the female TEA rate in Wales in 2021 was not significantly different to the male rate of 10.7%. Both rates were the highest on record for Wales
- The female TEA rate in Wales has fluctuated over time, previously reaching a record high of 7.0% in 2019 which was well above its long run average of around 4.0% between 2002 and 2010. In 2021 the rate reached a new peak of 9.8%
Overall, the report gives a nod to the rise in entrepreneurship activity across Wales and while there may be lower rates of those believing there are good start up opportunities in comparison to the rest of the UK, Wales is still cited as being the ideal framework for Entrepreneurship Support according to The All Party Parliamentary Group for Entrepreneurship Research — APPG for Entrepreneurship
In May 2022 NatWest partnered with the Centre for Research in Ethnic Minority Entrepreneurship (CREME) at Aston University to for the Time to Change report which sets out ten evidence-based recommendations to promote greater success and inclusion of Ethnic Minority businesses (EMBs) in finance and business support in the UK. The report sets out a blueprint for advancing the growth potential of Ethnic Minority businesses (EMBs) in the UK.
Highlights from the report
- Contribution of ethnic minority businesses (EMBs) to the UK economy could increase four-fold from £25bn to £100bn if the support is provided to start-up and scale EMB businesses
- Ethnic minorities in the UK are consistently more entrepreneurial than the White population, but less likely to be involved in running older, established firms that generate a stable income over time.
- Non-White groups, entrepreneurial activity doesn’t necessarily result in income generation for owners.
- More than two-thirds (67%) of all White business owners are running established firms of over 42 months old, while the equivalent figure in the Black community is 43%.
- Most Black business owners are running start-ups or fragile young firms that are prone to failure due to various barriers faced
- Total Entrepreneurial Activity (TEA) rate by UK regions and ethnic group shows Southeast, East and London had the highest rate in the UK and some of the strongest results for all the main ethnic subgroups.
- Barriers to EMB: discouragement, racism, lack of skills, language barriers, business jargon, lower income to start, co-ethnic community racial barriers, lack of financial support, difficulty in navigating/complying with regulations and admin procedures
You can read the full report here:
How does it affect you?
- Having an awareness of some of the challenges that ethnic minority students may face can help you to have a conversation their entrepreneurship ambitions.
- Many of EMB start-ups may be facing discouragement form their families and friends as well as the wider network and you may need to become their champions.
- They may have also not be able to complete applications and forms as confidently as some of their white counterparts and may need help with grant, start-up funding applications and navigating support
- More importantly, the findings of the CRÈME report is the link to the Wales Anti-Racism Policy, with Wales being the only nation in the UK to have a policy and action plan tackling this issue. From a Higher and Further Education perspective, the action plan outlines specific actions on page 45 which state “We will also expect all HE institutions to achieve a race equality charter mark within three years, as a condition of funding. This will help to embed anti-racism policies at all levels within the sector.”
On Tuesday 4th October, Princes Trust Cymru held discussions on how to support young women in employment, enterprise, and education. Research carried out by the Princes Trust in their Class of Covid report revealed almost half of young people in the UK (49%) feel anxious about their future on a daily basis, with 59% agreeing it feels frightening for their generation and 45% agreeing anxiety around recent political and economic events affects them daily. The report comes as the charity launches ‘Class of Covid’ campaign. The video supporting the campaign is very impactful and unquestionably worth sharing.
Highlights from the report
- More than half of young women (55%) feel anxious about their future on a daily basis compared to 43% of young men
- 56% of young women agreed the expected recession in the UK makes them more concerned than ever for their job security compared to 47% of men
- 48% of young women agreeing the uncertainty of their future career is a daily worry compared to 41% of men
- Women face higher levels of low confidence and self-esteem and face hidden barriers that were discussed at the breakfast briefing.
You can read the full report here:
New research from The Prince’s Trust reveals almost half of young people in the UK feel anxious about their future on a daily basis | News and views | About The Trust | The Prince's Trust (princes-trust.org.uk)
How does it affect you?
- Females are more likely to suffer self-esteem issues and but data from Princes Trust reveals that there was a significant increase of enterprise programme engagement since Covid. This maybe because women are seeing entrepreneurship as a more viable career option then before the pandemic.
- Support should be provided through development of soft skills, confidence building, role models and mentorship (also mentioned in the Alison Rose Report 2019, 2022)
Living through a pandemic has been devastating for young people – crippling their self-confidence and robbing them of their futures. It has impacted their education, social lives and options for work, with those already facing disadvantage being left even further behind. They have sacrificed so much, now it’s our turn to help them get back.
In October 2022, the National Black History Wales Youth and Community Awards were held at the Senedd in partnership with Race Council Cymru (RCC) | Promotion of equality Community Cohesion, and diversity by the elimination of discrimination on the grounds of race, gender, disability, sexual orientation or religion. A very inspiring evening that acknowledged the challenges young Black people face. The evening highlighted and recognised the amazing black talent across Wales.
October also saw the launch of the new Tramshed Tech offices in Newport. The evening showcased the alumni of the Start Up Academy and their experiences of raising their first round. If anyone is interested in joining the incubator programme, registrations can be made directly from the website
Start-up Academy. The Start-up Academy is a 12-week incubator programme for pre-start and early-stage businesses in the tech, digital and creative industries.
From Crisis to Opportunity
Report highlights several compelling findings from GEM 2021/22 data, from gender composition of high-potential start-ups to pandemic impacts and national expert ratings of the enabling environment for women entrepreneurs. Report found that women tend to be somewhat less active globally than men when it comes to start-up activity (on average, 10.4% of women surveyed versus 13.6% of men). In other words, women represent two out of every five early-stage entrepreneurs that are active globally. However, women represent about one in three high-growth entrepreneurs and one in three innovation entrepreneurs that are focused on national and international markets.
Other key highlights
- Women entrepreneurs in upper–middle-income countries represent some of the most innovative, high-growth entrepreneurs globally, and are at parity with men in regard to international market focus.
- As a result of the COVID-19 pandemic, women experienced similar declines to men in entrepreneurial intentions (to start a business) but sharper declines in startup rates in 2020. However, this was not the case in upper–middle-income countries, where both startup intentions and rates for women actually rose, by 4% and 11%, respectively, from 2019 to 2021.
- Overall, business exit rates for women rose from 2.9% to 3.6% over the two-year pandemic period, in contrast to the higher rates for men (3.5% to 4.4%). Women in upper–middle-income countries showed the largest pandemic impact on business exit with a 74% increase from 2019 to 2021, compared to only 34% for men.
Recommendations and Practical tips
- Consider how to Support high-potential women entrepreneurs across all sectors and levels of income. Women are starting high-growth businesses in all sectors and all economies across the world. However, their efforts are hindered by negative stereotypes reinforced by the narrative that women entrepreneurs are less capable and more disadvantaged by poverty, low education, and younger age.
- Find partner organisations to work with who have programmes in place that support female entrepreneurship
- Address structural barriers by debunking gender norms in entrepreneurship by using positive female role models
- Celebrate successful women founders as important role models that show younger women what is possible by sharing stories on Social media and other marketing media outlets.
- Refer to the framework provided by Welsh Government Supporting entrepreneurial women in Wales: an approach for Wales | GOV.WALES
Did you know that Enterprise Educators UK have a dedicated policy page that provides recommended readings, publications, and articles as well as consultation updates? If you are new to Entrepreneurship Education, want to refresh your knowledge or interested in consulting on recent EE developments, head over to the EEUK policy page to stay informed
In October, Youth Business International released their report Tomorrow’s Entrepreneurs which highlights the difference between young entrepreneurs compared to those aged over 35. Report highlights attitudes towards entrepreneurship have shifted over the years. Increasingly, young people see entrepreneurship as a way of changing the world instead of simply a way of making money.
Young entrepreneurs compared to those over 35 are:
- Twice as likely to say their business’s primary aim is to solve a social or environmental problem (39% to 18%),
- More likely to choose suppliers which do good for society, even if they cost more or they have to compromise in some other way (51% vs 36%)
- More likely to say their business focuses on promoting diversity and social good, even if that comes at the expense of profit (41% to 25%)
- Twice as likely to say “I have an important role in helping employees live fulfilling lives outside of work, even if that comes at the expense of their work life” (37% to 20%).
The survey also revealed that younger entrepreneurs run their businesses differently to older entrepreneurs. Younger entrepreneurs (aged 18 to 35) are:
- more likely to do business online (entirely: 31% vs 27% and mostly: 35% vs 27%),
- more likely to seek out external sources of information about running a business such as podcasts (35% vs 19%), social media (68% vs 34%), and accelerators/incubators (12% vs 7%),
- more likely to attend business networking events (71% vs 46%) and are more likely to have mentors, though entrepreneurs aged 36-45 had mentors at similar rates.
Unfortunately, the report shows that access to entrepreneurship isn’t universal.
- Young entrepreneurs more likely than older entrepreneurs to come from a privileged background.
- Younger entrepreneurs (aged 18 to 35) more than three times more likely to have attended a private school compared to the general public (20% vs 6.5%)
- more likely to say they had help through personal connections to get their business running than older entrepreneurs (45% vs 38%)
- more likely to raise finance from family and friends than older entrepreneurs
- less likely to have attended a comprehensive school than older entrepreneurs (49% vs 63%).
- As a group, Black, Asian or other ethnic minority entrepreneurs were more likely to say their businesses primary aim was to address a social or environmental problem, to focus on diversity even at the expense of profit, and to choose suppliers based on the social good rather than value for money.
Recommendations from the report:
- Broader use of Challenge Prizes and Advanced Market Commitments to give young people, who are trying to innovate solutions to big problems,
- More certainty that their work will become profitable and attract more investors to pro-social companies,
- Bring back the Enterprise Allowance Scheme, and ensure the amount is returned to a level that is more than unemployment benefit to help young entrepreneurs start their own businesses
- Support systems for young entrepreneurs should work to open doors for them; providing them with information about how to set up and run a business, linking them up with mentors, and ensuring they have opportunities to network with people who could support their businesses, especially potential investors.
To read the full report or find out more about the work Youth Business International is doing, visit the site Youth Business International - Youth Business International
An insight report into the UK's Graduate Entrepreneurs By: Jorge Velez Ospina & Marcos Rodriguez 6 October 2022
- According to our econometric estimates, after accounting for regional differences, the likelihood of graduates becoming entrepreneurs are: 10% in the Southwest, 9% in the West Midlands, 8% in London, Wales, and Yorkshire and the Humber. The lowest likelihood of R&D graduate entrepreneurship is observed in Northern Ireland (5%) and the Northeast of England (6%)
- The Southwest, East of England, South East and Wales see entrepreneurial rates above 7.5%, above the regional average of 7%. Entrepreneurial rates below the average are found in Northern Ireland (5.2%), Northeast (6.1%), Yorkshire and the Humber (6.4%) and Scotland (6.5%)
- 70% of graduate entrepreneurs operate in knowledge-intensive business services (KIBS), 10F 11 including information and communications technology (ICT) and professional and scientific activities (30%), and other knowledge-intensive services (40%).
- Of all graduate entrepreneurs, 58% studied Arts and Humanities subjects, 21% studied STEM subjects, and 15% studied Business and Management subjects. These results are in line with other studies, which find a strong relationship between having a background in an Arts and Humanities discipline and being an entrepreneur in the UK (Jones, et al., 2011), and other countries, including the US (Paulsen, et al., 2021).
- The relatively low representation of graduate entrepreneurs with a Business and Management background is consistent with wider evidence, which suggests that those who undertake a Business and Management course are “not prone to consider graduate self-employment” in the UK (Jones, et al., 2011).
Hazlewoods analysis of 5.9 million company directors currently registered in the UK shows that 171,000 members of Generation Z – those currently aged between 18 and 25 – are already directors of businesses in the UK
Gen Z directors in the UK include:
- 14,800 online retailers
- 12,400 bricks-and-mortar shops
- 4,100 property investment businesses
- 3,400 food stands and mobile food trucks
- 1,300 restaurants
- 1,100 recruitment agencies
- 900 estate agencies
- 700 pubs and bars
The ease with which people can now open retail businesses using social media platforms meant that numerous Gen Z members turned to ‘side hustles’ in online sales of goods
While the number of Generation Z directors is growing quickly, they make up only 3% of company directors. This places this youngest group a long way behind leaders Generation X – currently aged between 42 and 57 – who make up 41% of all directors in the UK.