Entrepreneurship in the UK and the Netherlands

Entrepreneurshipin the UK and the Netherlands

Utrecht University Alumni Meeting London, 2016

Prof Dr Erik Stam

EshipRules

Is the UK a better place forentrepreneurship than the Netherlands?

Rule Britannia

or

Oranje Boven?

UK vs NL

• Self-employment

• Start-ups

Self-employment 1972-2011

Self-employment 1972-2011

1979-1990

TEA Rate 2003-2012 (GEM)

Self-employment & New firms NL 1987-2013

?

Self-employment & New firms NL 1987-2013

Solo self-employed & employer firms 1996-2011

Entrepreneurship Paradox

• Amazing growth of entrepreneurship in the Netherlands, 1987-2012

• Miracle: no country in which entrepreneurship has grown as much as in the Netherlands over the period 2003-2012

• Paradox: increasingly a matter of growingnumber of solo self-employed, and low/mediocre rates of growth-oriented entrepreneurship

UK vs NL

• Scale-ups • Self-employment

• Start-ups

0

1

2

3

4

5

6

7

8

9

10

11

12

Belgium Germany Netherlands Sweden UK Israel US

Job growth expectations start-ups (2013)

20 or more jobs 5-19 0-5

Shar

e o

f th

e ad

ult

po

pu

lati

on

Ambitious Entrepreneurship

High-growth firms (2002-2005)

Formal institutions

Framework conditions

Systemicconditions

CulturePhysical

infrastructureDemand

Aggregate Value CreationOutcomes

Outputs Entrepreneurial Activity

Entrepreneurial Ecosystem Elements

Networks Leadership Finance Talent KnowledgeSupport services / intermediaries

Formal institutions

Framework conditions

Systemicconditions

Culture

Networks Leadership Finance Talent

Physical infrastructure

Demand

New knowledge

Support services / intermediaries

Entrepreneurial Ecosystem Elements

Hermann Hauser - Cambridgeshire

1978

19

Hermann Hauser

Source: Garnsey & Heffernan 2005

Formal institutions

Framework conditions

Systemicconditions

Culture

Networks Leadership Finance Talent

Physical infrastructure

Demand

New knowledge

Support services / intermediaries

Entrepreneurial Ecosystem Elements

Hermann Hauser - Cambridgeshire

19981997

Formal institutions

Framework conditions

Systemicconditions

Culture

Networks Leadership Finance Talent

Physical infrastructure

Demand

New knowledge

Support services / intermediaries

Entrepreneurial Ecosystem Elements

Hermann Hauser - Cambridgeshire

Two types of people: leaders (entrepreneurs) and feeders (people who support startups, such as government agencies, funders, service providers). While the "feeders" are the very fabric of the community, the entrepreneurs must be in the lead.

Brad Feld (2012)

UK vs NL

• Scale-ups • Self-employment

• Start-ups

• Intrapreneurship

Arthur Fry

Ken Kutaragi

Jef Raskin (#31)

Paul Buchheit (#23)

Intrapreneurship: employees developing new business activities for their employer

e.g. establishing a new outlet or subsidiaryand launching new products

or new product-market combinations

US

RU

ZA

GR

NL

BE

FR

ES

HU

ROSW

UK

DK

SE

PL

DE

PEMX

AR

BR

CL

CO

MY

AU

SG

TH

JPKR

CN

TR

PKIR

DZ BB

PT

IE

FI

LT

LV

HR

SI

BA

CZ SK

PAVE

UY

TTJM

BD

TW

AE

0

2

4

6

8

10

12

14

16

0 5 10 15 20 25 30

% o

f 1

8-6

4 p

op

ula

tio

n in

vo

lve

d i

n E

mp

loye

e E

ntr

ep

ren

eu

ria

l A

cti

vit

y

% of 18-64 population involved in Total early-stage independent Entrepreneurial Activity

Algeria DZ Hungary HU Russia RU

Argentina AR Iran IR Singapore SG

Australia AU Ireland IE Slovakia SK

Bangladesh BD Jamaica JM Slovenia SI

Barbados BB Japan JP South Africa ZA

Belgium BE Korea KR Spain ES

Bosnia & Herz. BA Latvia LV Sweden SE

Brazil BR Lithuania LT Switzerland SW

Chile CL Malaysia MY Taiwan TW

China CN Mexico MX Thailand TH

Croatia HR Netherlands NL Trinidad & Tobago TT

Czech Republic CZ Pakistan PK Turkey TR

Denmark DK Panama PA United Arab Emir. UE

Finland FI Peru PE United Kingdom UK

France FR Poland PL United States US

Germany DE Portugal PT Uruguay UY

Greece GR Romania RO Venezuela VE

UK vs NL

• Scale-ups

• Social entrepreneurship

• Self-employment

• Start-ups

• Intrapreneurship

Social entrepreneurship

Social entrepreneurship (2009)

UK vs NL

• Scale-ups

• Social entrepreneurship

• Self-employment

• Start-ups

• Intrapreneurship

The UK is a different place forentrepreneurship than the Netherlands

Formal institutions

Framework conditions

Systemicconditions

CulturePhysical

infrastructureDemand

Aggregate Value CreationOutcomes

Outputs Entrepreneurial Activity

Entrepreneurial Ecosystem Elements

Networks Leadership Finance Talent KnowledgeSupport services / intermediaries

UK <-> NL:- Less employment protection: + scale-ups / - intrapreneurship- Weaker welfare state: + social entrepreneurship- Entrepreneurship culture:

- Entrepreneurship as a good career choice (58% - 79%)- High status to successful entrepreneurs (79% - 64%)

- Need for achievement: + scale-ups- Entrepreneurial finance infrastructure (business angels, AIM): + scale-ups

The UK is a different place forentrepreneurship than the Netherlands

Oranje Boven

and

Rule Britannia

Entrepreneurship in the UK and the Netherlands

Utrecht University Alumni Meeting London, 2016

Prof Dr Erik Stam

EshipRules