13 July 2017
San Sebastian Campus
GEM, Global Entrepreneurship Monitor, is an international research project that makes it possible to track and compare the level of entrepreneurship in the Basque Country with that of other countries. Iñaki Peña and José Luis González of Deusto Business School have taken part in this international project which feeds a large database yearly on entrepreneurship. It is the leading international initiative of this type and over 75 countries have worked on it to analyse the evolution of entrepreneurship in different geographic areas and economic cycles. Through SPRI, the Basque Government, together with the three Regional Councils in Biscay, Guipuzcoa and Alava, support this project which is the focus area of research being conducted at the University of the Basque Country, the University of Deusto and the University of Mondragon. The 2016 GEM Basque Country report shows the following results:
- The population of the Basque Country demonstrates awareness and values concerning entrepreneurship similar to those of Spain and Germany. Perception of the capacity to start a business or of existing opportunities that encourage people to open a new business are similar to those registered in the rest of Spain and Germany. In contrast, there is greater optimism concerning both the values and perceptions of entrepreneurship in the United States than in our area.
- As per the intention to set up a business, the Basque population is showing greater interest although the intention is still three times higher in the United States. Over 3% of the Basque adult population materialise their intentions to start new businesses. This figure is slightly lower than Spain and Germany but still 12% lower than in the U.S. It is remarkable that the percentage of people who become entrepreneurs, motivated by business opportunities rather than the need to survive, is higher in the Basque Country than in the rest of Spain and Germany.
- The entrepreneur profile in the Basque Country is a professional with university qualifications and an average age of 40. The retirement rate of business leaders with well established companies is most revealing in the Basque Country.
- A greater number of women are entrepreneurs, now reaching similar figures for both sexes.
- Business ideas for new undertakings mostly fall within the services sector. These are modest initiatives, but the latest report shows higher aspirations for growth.
- The innovation level of newly created Basque firms exceeds the European and Spanish average. Innovation is higher among new businesses than ones which have been operating longer.
- Over 20% of young Basque firms focus on the international market.
- The seed capital needed to set up a firm has dropped to around 15,000 euros. This amount of seed capital is the same as in the rest of Spain. However, informal investment from the Basque adult population to finance new undertakings reflects a 2.5% to 2.8% increase .
- Existing entrepreneurship is mainly based on the entrepreneurs’ financial capacity, as they contribute 74% of the capital needed for new businesses. Entrepreneurs enter the market with their own resources, meaning a minimum amount of these initiatives is financed by banks.
- The opinion on programmes and infrastructures which are in place to boost entrepreneurship in the Basque Country is more favourable than the European and Spanish average. Values education and content on entrepreneurship in primary and secondary education are cited as the weakest area in the Basque entrepreneurial ecosystem, while a decline is also noted in R&D transfer mechanisms
Recommendations in the 2016 Global Entrepreneurship Monitor Report on the Basque Country
- Strengthen the policies on entrepreneurial values awareness among the Basques, supported by better ways to attract Basque youth and adults to create companies. For instance, curriculums that would boost students' entrepreneurial and innovation competences in primary and secondary education could contribute to transforming society's values and capacities for entrepreneurship.
- Facilitate generational replacement resulting from retirement of entrepreneurs, as well as handover and continuity of their businesses.
- Continue to concentrate on improving tools for R&D transfer in universities and technology centres that focus on start-ups, jointly with evaluation of public aid, monitoring the performance of new innovative firms.
- Move forward with the development of more productive and inclusive entrepreneurial activities to achieve a higher level of well-being among the Basque people.
- Emphasise improvement and dignification of the social vision of the value of entrepreneurship through the media.
In general, it is important to highlight that education, training and support form the bases for change in the entrepreneurship phenomenon in the Basque Country.
*The report was presented by the Basque Country GEM team, which forms part of the GEM Spain Network on 13 June 2017.
