In regards to Luxembourg, the GEM examined the impact of government initiatives such as Nyuko, Fit4Entrepreneurship, Fit4Start, all of which promote the spirit of business, entrepreneurial careers, and offer training and funding.
Such initiatives have certainly born fruit, as the latest GEM report shows that Luxembourg's total early-stage entrepreneurial activity (TEA - proportion of entrepreneurs compared to the total population) is at 9.3% and surpasses the European average of 8.3%.
However, Luxembourg does fall behind other countries like Estonia (19.4%) and Canada (18.8%), which are at the top of the ranking for TEA. Italy (4.3%) and France (3.9%), in comparison, remain at the bottom.
The GEM also examines entrepreneurs by gender, as male entrepreneurs predominantly focused on changing industries and services, whereas female entrepreneurs focused on educational services, health, and more.
The majority of new businesses are smaller in size, with five employees or fewer. The report did highlight a gender disparity in Luxembourg as the share of early-stage entrepreneurs among men (12.5%) was higher than the share of new entrepreneurs among women (5.9%).
The report details that Luxembourgish entrepreneurs are more motivated by the wish to be independent rather than necessity. 41% of the total population estimates that they have the necessary skillset to build a company compared to 43% in Europe.
This proportion is higher amongst men (50%) and educated people (50%) than amongst women (30%) and less-qualified individuals (33%).
The GEM's statistics show that 50% of start-ups are innovative compared to 25% of established businesses. The proportion entrepreneurial youths focusing on innovation is the highest in all of Europe, with an average of 28.7%.
A significantly large majority of entrepreneurs require external funding. Over two thirds of respondents declared the amount they personally contributed: amongst those, 50% contributed less than €10,000, 26% put in between €10,000 and €50,000 and 24% above €50,000. The statistics revealed that family members and friends are a primary source of funding for starting businesses.
As in other EU countries, the main causes of bankruptcy are a lack of profitability, person reasons, and issues linked to finding sufficient founding. A number of entrepreneurs abandoned their companies for another job.
As a result, the proportion of entrepreneurs stopping their business due to the opportunity of selling their business is considerably higher than in Europe (2%) at 11%.
Supporting entrepreneurs: BCEE to collaborate with entrepreneurship accelerator Nyuko
