Feb 15, 2017 - HKBU, HKU, & SZASS with support from Savantas and ... Kevin Au (CUHK), Global Entrepreneurship Monito
GLOBAL ENTREPRENEURSHIP MONITOR 2016/17 HONG KONG & SHENZHEN Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK) February 15, 2017
THE MOST COMPREHENSIVE & RELIABLE ENTREPRENEURSHIP STUDY IN THE WORLD The most influential entrepreneurship study in the World
Partnership between CUHK, HKBU, HKU, & SZASS with support from Savantas and KPMG
First launched in 1999; 6th time run in HK
Data collection Apr-Nov 2016
Rigorous methodology design & data collection
4,000+ Individuals surveyed in Hong Kong and Shenzhen
66 economies participated in GEM this year
4,000
76 Experts interviewed in both cities
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
GEM COVERS 69% OF GLOBAL POPULATION & 85% OF GLOBAL GDP
66 ECONOMIES IN THE STUDY 184,000+ INTERVIEWS x 60+ QUESTIONS
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
TOTAL EARLY STAGE ENTREPRENEURSHIP IS GROWING STRONG SINCE 2009 8.8% 12.6%
-45%
NASCENT + BABY BUSINESS ISRAEL: 11.3%
10.3%
FROM START TO 3.5 YEARS
SHENZHEN +234% 16% HONG KONG 9.4% +159%
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen % of adult population (18-64); provided statistics are estimates and subject to sampling error
OVERALL IMPROVEMENT IN ENTREPRENEURIAL PROCESS 2009 VS 2016 HONG KONG
SHENZHEN
+72%
+27%
+170%
+104%
+206%
3.1%
+284%
+110%
1% 2.4%
+185%
+109%
3.4%
+389%
+118%
3.7%
+89%
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen % of adult population (18-64); provided statistics are estimates and subject to sampling error
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
INTRAPRENEURSHIP COMPLEMENTS THE ENTREPRENEURIAL GROWTH 7%
7%
1.2%
SHENZHEN 4.9%
ENTREPRENEURSHIP IN ESTABLISHED FIRMS ISRAEL: 7.3%
NEW PRODUCTS + SPINOFFS
HONG KONG 4.1%
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
THE ECOSYSTEMS ARE IMPROVING AND ARE HIGHLY COMPLEMENTARY INNOVATION DRIVEN
11 1
SHENZHEN
HONG KONG
Entrepreneurial finance 9.0
Cultural & social norms
Gov policies: support & relevance
8.0 7.0
11
6.0
Physical infrastructure
Gov policies: taxes & bureaucracy
5.0
1
4.0 3.0
2 Internal market burdens or entry regulations
2.0
Gov e-ship programs
1.0
11 Internal market dynamics 1
E-ship education at school stage E-ship education at post school stage 1
Commercial & legal infrastructure R&D transfer
1 = highly insufficient; 9 = highly sufficient
2
2
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
IMPROVED SOCIAL IMAGE OF ENTREPRENEURSHIP: 2009 VS 2016 Perceived Perceived Opportunities
Opportunities
78%
57% Media Attention71%
40%
Fear of Failure Rate
Media 79% Attention
HONG KONG High Status of 63% Successful Founders
SHENZHEN
40% 55%
38%
Fear of Failure Rate
Know Startup Entrepreneur
High Status of Successful Founders
61%
74%
Know Startup Entrepreneur
71% Desirable Career Choice
Desirable Career Choice
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
HONG KONG VS. SHENZHEN – WHAT’S THE DIFFERENCE? “SHENZHEN IS NOW WHAT HONG KONG USED TO BE IN THE 1970s: VIBRANT, DYNAMIC, AND DRIVEN BY THE FIRST GENERATION OF IMMIGRANTS.”
SHENZHEN
HONG KONG
Manufacturing capabilities & supply chain integration
International character: access to global markets, global funding opportunities, international talent
Focus on innovation, long-term planning, and entrepreneurial culture attracting talent and funding
Maturity of the economy: legal environment, IP protection, ease of doing business
Driven by highly skilled & selfselected CREA-PRENEURS of Shenzhen
Driven by market-focused & sustainable DEVELO-PRENEURS of Hong Kong
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
• Leverage natural industry compatibilities between the two cities and build cross-border industry associations • Cooperate in accessing Mainland and international markets • Share cross-border resources, R&D cooperation, talent development • Develop shared cultural understanding of each other: cross-border education, exchange programs • Coordinate government policies for entrepreneurship between the two economies
AREAS FOR COOPERATION
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
TO SUM UP: STRONG & COMPATIBLE GROWTH • Entrepreneurship on the rise and it is a healthy growth, but not yet mature • Business angel culture is getting strong and angels are generous • Fewer start-ups close down because of the lack of funding • Intrapreneurship is picking up, strengthening the appreciation for entrepreneurial mind-set locally • Two different but highly compatible ecosystems; neither of them can succeed alone in building an alternative to other international start-up hubs Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
THANK YOU Q&A SESSION GEM 2016 / 2017 GLOBAL REPORT DOWNLOAD
GEM 2016 / 2017 HK REPORT DOWNLOAD
WWW: ENTREPRENEURSHIP.BSCHOOL.CUHK.EDU.HK/GEM_HK
Russia Kazakhstan India Iran Cameroon Burkina Faso Malaysia Bulgaria Morocco Macedonia South Africa Hungary Jordan Croatia Georgia Slovakia Mexico Jamaica China Poland Saudi Arabia Panama Indonesia Uruguay Latvia El Salvador Egypt Argentina Shenzhen Turkey Thailand Brazil Guatemala Lebanon Chile Peru Colombia Belize Ecuador Italy Germany Spain France United Arab Emirates Greece South Korea Finland Sweden Qatar Slovenia Portugal Switzerland Chinese Taipei United Kingdom Luxembourg Hong Kong Austria Puerto Rico Ireland Netherlands Israel Cyprus USA Australia Estonia Canada
TOTAL EARLY-STAGE ENTREPRENEURSHIP RATES BY ECONOMY
40.00%
35.00%
30.00%
25.00%
20.00%
16.04%
15.00%
10.00%
9.44%
5.00%
0.00%
Factor-driven economies Efficiency-driven economies Innovation-driven economies
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen
Factor-driven economies Efficiency-driven economies Innovation-driven economies
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen Greece
Australia
Switzerland
Netherlands
USA
Austria
Cyprus
Estonia
Taiwan
Finland
Portugal
Germany
Canada
Slovenia
South Korea
Spain
Hong Kong
United Kingdom
7.82%
Italy
Sweden
Ireland
France
Israel
Luxembourg
Qatar
United Arab Emirates
Puerto Rico
Thailand
Lebanon
Brazil
Indonesia
Ecuador
El Salvador
Latvia
Turkey
Guatemala
Colombia
Georgia
Jamaica
Chile
Argentina
Shenzhen
Mexico
10.00%
Morocco
China
Uruguay
Macedonia
Poland
Bulgaria
Egypt
Slovakia
Peru
Hungary
Belize
Malaysia
Panama
Croatia
Jordan
South Africa
Saudi Arabia
Burkina Faso
Cameroon
Iran
Russia
India
Kazakhstan
ESTABLISHED BUSINESS (3.5YRS+) PREVALENCE RATES
30.00%
25.00%
20.00%
15.00%
6.12%
5.00%
0.00%
Burkina Faso Kazakhstan Russia Cameroon Iran India Panama Malaysia Georgia Morocco Indonesia Jamaica Ecuador South Africa Peru Bulgaria El Salvador Thailand Colombia China Macedonia Brazil Jordan Guatemala Egypt Slovakia Lebanon Uruguay Hungary Argentina Turkey Latvia Saudi Arabia Mexico Szhenzhen Poland Croatia Chile Belize Greece Puerto Rico Italy United Arab Emirates South Korea Portugal Spain France Hong Kong Slovenia Germany Finland Cyprus Chinese Taipei Canada Sweden Switzerland Ireland Estonia Qatar United Kingdom USA Luxembourg Israel Austria Netherlands Australia
INTRAPRENEURSHIP RATES BY ECONOMY 10.00
9.00
8.00
7.00
6.00
5.00
4.86
Factor-driven economies Efficiency-driven economies
4.11
4.00
3.00
2.00
1.00
0.00
Innovation-driven economies
Dr. Marta Dowejko (HKBU) & Prof. Kevin Au (CUHK), Global Entrepreneurship Monitor 2016/17 Hong Kong & Shenzhen