By Jonathan Davies
The number of young people and women starting businesses in Wales is falling, according to a report supported by the Welsh government.
The Global Entrepreneurship Monitor (GEM) found that the number of young people starting their own business fell from 7% in 2012 to 5.4% in 2013.
And the number of women starting up on their own was down from 6% in 2012 to 4.2% last year.
There were also significant falls in the number of people who intend to launch their own company in the next three years. In 2012, 8.8% of those surveyed planned to start in within three years. In 2013, that figure fell to just 3.9%.
The report also found that there were increased levels of entrepreneurialism during the recession. And the suggested that the improved economic climate has led to less entrepreneurial activity in Wales.
“It suggests that the decline may in fact be a consequence of improving economic conditions, with the perception of increased availability of jobs no longer necessitating entry into self-employment amongst the young due to lack of employment opportunities," the report said.
“In 2013 there remained a gap in the share of non-entrepreneurial individuals in Wales that thought there were good opportunities for starting a business in their local area in the next six months compared to the UK, however the proportion of the population seeing good opportunities and reporting that the fear of failure would prevent them starting a business has fallen from the peak of around 50% in 2011 to 39% in 2013.
“In Wales fear of failure had risen dramatically during the recession, and the fall back in 2013 also suggests a renewed confidence and degree of optimism amongst the non-entrepreneurial population, factors which may lead to an increase in activity rates in the future.”
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