It can be daunting to take the leap and start a business for anyone. This fear of failure is more pronounced in Luxembourg than any other European country, according to the latest GEM Luxembourg 2018/2019 Report. Just over half – 51% – of respondents note that fear of failure prevents them from starting a firm.
Fear of failure is more common among women (56%) than men (46%) and among people with lower education (54%) than highly educated people (48%). On a positive note, 55% of respondents perceive Luxembourg as a favorable environment for starting a business.
“Targeted programs to promote entrepreneurship must respond to the motivations, fears and individual characteristics of entrepreneurs,” said Dr. Cesare A. F. Riillo, Team Leader of GEM Luxembourg and an author of the report.
In the following Q and A, Riillo and Chiara Peroni provide other key findings and offer related analysis.
Do you have any insights to share about family entrepreneurship in Luxembourg?
The special GEM topic for 2018 focused on family businesses and family entrepreneurship. Luxembourg entrepreneurs rely heavily on family members to start a business. One in three new entrepreneurs involve family members in society, according to the new GEM 2018/2019 Luxembourg National Report.
Are entrepreneurs in Luxembourg content?
In 2018, 62% of new entrepreneurs are satisfied with their lives compared to 75% of the other respondents. The proportion of satisfied entrepreneurs is nevertheless higher among women than among men (65% and 60%, respectively). Entrepreneurs in Luxembourg are primarily motivated by the desire for independence or higher income, rather than by necessity.
Speaking of the higher percentage of satisfaction among female entrepreneurs, what is the breakdown of entrepreneurs by gender in Luxembourg?
In previous years, the GEM report highlighted a persistent gender gap. In 2018, the proportion of young entrepreneurs among men (12.7%) continued to be higher than the proportion of new entrepreneurs among women (8.7%). However, this gap has narrowed. In 2017, 12.5% of new entrepreneurs were men and 5.9% were women. There are also differences in terms of age and education.
How do immigrants fit into the country’s entrepreneurial ecosystem?
Immigrants continue to play a major role in the ecosystem of entrepreneurship. The proportion of entrepreneurs among first generation immigrants (those who were not born in Luxembourg) is always higher (13.0%) than that of immigrants born in the country (8.8%) and among those of the second generation (9.4%).
How are government initiatives to promote entrepreneurship faring?
This year, the GEM report delivered the first results of government programs that promote entrepreneurship. Recent policy initiatives have focused on education for entrepreneurship, support and finance for entrepreneurs and administrative simplification. These actions aim to raise public awareness on this subject and to ease the burden of business creators.
According to survey results, training programs are popular with entrepreneurs. One-third say they are engaged in entrepreneurship training at the high school level, and almost half after graduation. These figures are higher for entrepreneurs than for non-entrepreneurs, which suggests a positive link between entrepreneurship training and starting a new business. Another important point of the program: while businesses are often created using online procedures, entrepreneurs' satisfaction with online services is mixed: 40% of new entrepreneurs say they are somewhat or very satisfied, while more than 30% are dissatisfied.
Access the full report.