Entrepreneurs Are Made…Not Born

From Albania to Morocco to Zimbabwe and every country in between, individuals have become empowered to say goodbye to their bosses and strike out on their own. According to the Kaufman Index of Entrepreneurial Activity, the entrepreneurial rate in the US is well above the dot.com bubble of 15 years ago. Although the US has slipped a bit this year from the high point of 320 new entrepreneurs out of 100,000 adults in 2011, it still adds up to over 20 million non-employer businesses out there today, with more starting every day, according to Kaufman.

Which all begs the questions: Are entrepreneurs born or made? And what drives them to start their own businesses? Both questions were posed by the 2014 Amway Global Entrepreneurship Report (AGER), an annual survey that takes the public pulse on the state of self-employment around the world. This year's report explored entrepreneurship education.

“Entrepreneurs play an important role in growing economies,” said Amway Chairman Steve Van Andel. “They create jobs, encourage competition and help communities grow and flourish. As the business environment has changed through the years, so have the reasons people decide to venture out on their own. We hope this report advances the discussion on entrepreneurship and leads to a deeper understanding of what can be done to encourage and better prepare more people around the world to start businesses of their own.”

The AGER fosters global discussion on entrepreneurship and raises awareness of the significant role entrepreneurs play in modern economies. The first survey launched in 2010 as the Amway European Entrepreneurship Report, then expanded worldwide with the 2013 AGER, encompassing 24 countries. This year's report spans a record 38 markets, with face-to-face and telephone interviews conducted with 43,902 men and women aged 14-99.

Below are some key findings from the AGER study:

Entrepreneurs can be made.
At 63%, the majority of global respondents said entrepreneurship can be taught. Those under age 35 held the strongest beliefs (70%), while men and women were virtually of the same opinion, at 64% and 63% respectively.

Education is everything.
Respondents rated the most crucial aspect of entrepreneurship education as “basic business skills” (42%), followed by “leadership and management skills” and “entrepreneurship in practice,” at 37% each. “Schools and secondary education” were their classrooms of choice (36%), with “special start-up programs” and “universities, higher education” second and third, at 33% and 32%, respectively. Yet just four in ten (43%) found their educational options satisfactory.

Positivity prevails.
On average, 75% of respondents have positive attitudes toward entrepreneurship, an increase of 4%,  with those under 35 years the most optimistic, at 80%. Entrepreneurial potential remained high as well, with two out of five respondents (42%) saying they can imagine starting a business. Findings showed a correlation between these two factors: In countries where people were more positive about entrepreneurship, a higher percentage can also imagine starting a business. However, only 9% of global respondents are currently self-employed, creating an entrepreneurial gap of 33%.

Freedom and fulfillment ring.
When ranking the reasons to choose entrepreneurship, 46% said “independence from an employer, being my own boss,” while 43% identified “self-fulfillment, possibility to realize own ideas.” As with the 2013 AGER report, these two factors clearly were preferred over income-related aspects, and respondents aged 14-34 years had even stronger beliefs, at 50% each. However, the lower a country's economic output per capita, the less important independence becomes as a driver for entrepreneurship.

“Younger generations are most optimistic about entrepreneurship,” added Amway President Doug DeVos. “The report points to their great potential. We must use this key insight to continue fostering the entrepreneurial spirit and create a global culture that unleashes the capabilities of younger people.”

Amway partner and Chair for Strategy and Organization at Technische Universitat Munchen (TUM) Dr. Isabell M. Welpe agrees. “Promoting entrepreneurship supports the development of national economies – entrepreneurs advance ideas that enrich our society and our lives. Policymakers should seize this chance by initiating entrepreneurship education targeted at younger generations.”