Reports like the 2002 GEM Global Report have linked national economic prosperity to a country’s level of entrepreneurship. With this correlation in mind, many European Union countries recently formalized their desire to cultivate a higher level of entrepreneurship in a new Green Paper, Entrepreneurship in Europe. The paper looks at the current state of entrepreneurship in Europe and provides strategies to help Europe boost its number and quality of entrepreneurs.

The paper primarily focuses on the entrepreneurial motivations of individuals, citing entrepreneurship as a mindset to be cultivated within a populace. The authors surmise that, on the whole, Europeans do not yet see self-employment through entrepreneurship as a positive goal. According to the European Union, only 45 percent of Europeans would prefer to be self-employed, compared to 67 percent of U.S. citizens. And more than twice as many U.S. citizens as European citizens have started a new business in the last three years.

One reason Europeans do not see entrepreneurship as a viable career option is that most Europeans consider it far too risky, according to the paper. The commission notes that many business ideas never even make it to the market in Europe because entrepreneurs question the ideas’ viability rather than testing them in the market place. According to the paper, 46 percent of Europeans agree that “one should not start a business when there is a risk it might fail,” compared to only 35 percent of U.S. citizens.

The commission suggests that governments in European Union countries must create friendly environments for starting and developing businesses that would help dispel these negative views of entrepreneurship and limit individual risk. It suggests three broad approaches:

• Countries should strive to make individuals aware of the concept of entrepreneurship and portray it as a sufficiently attractive career option. They must also equip individuals with the right skills to turn ambitions into successful ventures. Specifically, governments should work to correct individuals’ assumptions of risk and reward, educate enterprises on growth strategies, and reach out to women and other underrepresented groups as possible entrepreneurs.


• Governments should develop support systems that would allow firms to develop and grow, and not unduly hinder downsizing/closure. Governments should improve access to finances, remove administrative barriers to new business inception, and remove gender biases and barriers for ethic minorities.


• Governments should ensure that citizens value entrepreneurial success and reduce the stigma of failure. “One way of encouraging such positive attitudes is by providing role models through the showcasing of success stories,” the paper says.