euroweek 2016 - aging society & entrepreneurship

Euroweek „Facing megatrends“Aging Europe: Who will be the next generation of Entrepreuneurs

TEAM: Kamila BerdikulovaBirgit EberhardAlexandre FerreiraValentin GauthierMilana Kan Annelies Rainer

Academic: Kristaps Lesinskis

Date: Wednesday, April 20. 13:30 pm Room 2F10

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LATVIAMilana & KamilaLATVIA/UZBEKISTAN

Milana & Kamila

AUSTRIAAnnelies & Birgit

FRANCEValentin & Alexandre

WHAT DO THESE PEOPLE HAVE IN COMMON?

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AND THESE…….

Who will be the next generation of entrepreneurs?

AGING SOCIETY…

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Aging Europe & Consequences

Entrepreneurial Activities

Country Specific Analysis Survey Analysis

1 2 3 4

Future Outlook

5

AGENDA

• New venture creation involves a high level of uncertainty.

• Proportion of people aged above 64 is increasing requirements for retirement homes, health, social and wellnessservices will rise

• Percentage of young entrepreneurs will rising

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INITIAL SITUATION

• Entrepreneurs in Latvia, Austria and Uzbekistan are becoming younger.

• Increasing life expectancy results in venture creation involving health, wellness and social services.

• Lack of starting capital is the main obstacle for young entrepreneurs.

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WORKING HYPOTHESIS

• Goals– Define how the aging megatrend influences on the entrepreneurial activities in

the countries.– Define most attractive business sectors for young entrepreneurs.– Create suggestions for encouragement of entrepreneurial activity of young

people.

• Methods– Desk research – Field research – Online survey

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GOALS/METHODS

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Aging Europe & Consequences

Entrepreneurial Activities

Country Specific Analysis Survey Analysis

1 2 3 4

Future Outlook

5

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• One in three children born after 2011 has a chance to survive their 100th birthday

• Life expectancy in EU-28 was 80,9 years in 2014 – increased by 7 % from 2005

1. DEMOGRAFIC TREND

2014 2020 2040 2080

15.6 15.6 14.6 15.1

65.9 64.1 58.5 56.2

13.4 14.617.9 16.4

5.1 5.8 9 12.3

0-14 years 15-64 years 65-79 years 80+ years

Population structure in EU

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• Older population structure• Problem: Keeping older people healthy, independent and fulfilled• Solution: New opportunities

1. CONSEQUENCES

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Aging Europe & Consequences

Entrepreneurial Activities

Country Specific Analysis Survey Analysis

1 2 3 4

Future Outlook

5

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2. ENTREPRENEURSHIP

What are the characteristics of a successful entrepreneur?

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• Entrepreneur – person who starts a new business • Entrepreneurship is a key to economic development

• Requirements and challenges– Invaluable skill personality – Social capital: mentors and other business owners– Special support from state – Fast-adaptive, creative and flexible persons – Administrative barriers and work-life balance

2. CHARACTERISTICS

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• Push factors• Own boss• Relize own ideas• Better work-life balance• Unemployment• Higher Income prospects (Uzbekistan)

• Pull factors• Financial support programs• Acccess to free education and trainings• Tax incentives• Ease of administrative barriers• General information

2. PUSH AND PULL FACTORS

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• IT• Accounting services• Business consulting• Technical research• (Home) Health care• Social Services

2. ATTRACTIVE BUSINESS SECTORS

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Aging Europe & Consequences

Entrepreneurial Activities

Country Specific Analysis Survey Analysis

1 2 3 4

Future Outlook

5

Austria

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Life expectancy is 81 and retirement age is 62.

3. AUSTRIA – Aging Society

France

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Life expectancy is 82 and retirement age is 65.

3. FRANCE – Aging Society

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• Reduction of kindergartens and schools• Increasing requirements of elder people care and elder houses

• Support programs:– Regional Promotion – low interest loans, grants, guarantees– Technology Promotion– Environmental support programs

– Free education - no university tuitions/ scholarships– Expert talks, networks and etc.

3. AUSTRIA/FRANCE Consequences for Entrepreneurs

Latvia

Life expectancy is 74 and retirement age is 62.

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3. LATVIA – Aging Society

• High level of migration of young people• Improvement of the health care services for adults• Business people used to live on a short budget

• Support programs:– Investment and Development Agency – couchings– European Information Centers – network within the EU– Business and Innovation Centres – support industrial entreprises– Gate2Growth Initiative – Financial support programs for EU– Governmental scholarships

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3. LATVIA – Consequences for Entrepreneurship

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UZBEKISTAN

UZBEKISTAN

Life expectancy is 68 and retirement age is 60.

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3. UZBEKISTAN – Aging Society

• No aging of society within next decade.• Lack of study places in higher educational institutions and job

opportunities• Expansion of private business has contributed a lot to a country‘s

economy

• Support programs:– Associations for each business sectors to support entrepreneurial

activity– Business forums– Chamber of Commodity– Business Women Association– Governmental scholarships– Tax reliefs, private investors and etc.

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3. UZBEKISTAN – Consequences for Entrepreneurship

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Aging Europe & Consequences

Entrepreneurial Activities

Country Specific Analysis Survey Analysis

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Future Outlook

5

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• Quantitative online survey • Students between 18 to 30 in Austria, France, Latvia and

Uzbekistan• 48 answered questionairs

• Aim: General attitude of students towards entrepreneurship

4. ONLINE QUESTIONNAIR

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• “Entrepreneurs in Austria, Latvia are becoming younger”

4. WORKING HYPOTHESIS

18 to 34 years44.3%

others55.7%

2014

18 to 34 years26.6%

others73.4%

2007

18 to 34 years59.0%

others41.0%

2013

18 to 34 years57.0%

others43.0%

2010

Austria

Latvia

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• “Increasing life expectancy results in venture creation involving health, wellness, social services.”

4. WORKING HYPOTHESIS

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• Lack of starting capital is the main obstacle for young entrepreneurs.

4. WORKING HYPOTHESIS

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Aging Europe & Consequences

Entrepreneural Activities

Country Specific Analysis Survey Analysis

1 2 3 4

Future Outlook

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Inhabitants (in mln) GDP per capita (in USD)

Pension age (years)

Life expectancy (years)

Austria 8.6 49,670 62 81

France 66.21 42,960 65 82

Latvia 2.2 15,280 62 74

Uzbekistan 30.6 2,090 60 68

5. SUMMARY

• Aging of society and entrepreneurship1. Risk avoidance vs. risk taking

• Country analysis1. Three types of countries2. Different conditions, different problems

• General characteristics of entrepreneur1. Younger age2. 0-5 years working experience3. Government support is required4. More digitalized generation

5. SUMMARY

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• Young population is decreasing Entrepreneurs are decreasing

• Old population is increasing Target market is changing

• Change of timeDifferent lifestyle

5. FUTURE Predictions

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Austria France Uzbekistan

Austria 13 22 4

France 21 12 6

Uzbekistan 5 5 29

5. Quiz Monday, April 18 Project shopping

39 Participants

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Austria France Uzbekistan

Austria 13 22 4

France 21 12 6

Uzbekistan 5 5 29

5. Quiz Monday, April 18 Project shopping

39 Participants

11 right answers

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• Sources for Statistics:• World bank• WKO• european commissions• eurostat• Forbes• central statistical of latvia• Asian devellopement Bank• Wrike inc.

• Books and Papers• Chand; Smriti, Entrepreneurship: Characteristics, Importance, Types, and Functions of Entrepreneurship, in Your

Articel Library• Gregoire, Waylae; New Report Reveals Fascinating Statistics About Entrepreneurs, • Schmalzer; Wenzel; Mahajan; Penz; Report Austria, GME, Global Entrepreneurship Monitor• The Entrepreneur and Entrepreneurship: Operational definitions of their role in society. Robert B. Carton, Charles

W. Hofer, Michael D. • Defining entrepreneurship. Barton Cunningham and Joe Lischeron.• Swenson, Barbara; Entrepreneurs Are Starting Out Younger Than Ever, and Heres Why, in Starting a Business,

all Business, 2016

Sources

QUESTIONS