Entrepreneurship in Sweden is declining and only 6% of the population are currently entrepreneurs. However, a new report produced by Froda shows that the entrepreneurial potential is great. More than half of all Swedes want to start a business and among young people, two-thirds dream of becoming an entrepreneur.
The report Driv is a survey of Swedish entrepreneurship and Swedes' attitudes towards entrepreneurship, their driving forces and perceived obstacles. The report is based on data from Statistics Sweden and over 6500 interviews with Swedes through a survey with Norstat. The report shows that the entrepreneurial spirit in Sweden is high and that there are over 4 million potential entrepreneurs in Sweden.
- In the report, we see that there is a big gap between wanting and doing, which shows that Sweden is missing out on great potential and needs to do more to promote entrepreneurship," says Olle Lundin, CEO of Froda.
The main drivers are linked to self-determination. Two thirds want to work on what they want, half want to plan their own time and four out of ten want to be their own boss. At the same time, fear of financial impact, failure and lack of knowledge are seen as the main obstacles. Women are more likely than men to say they are hampered by confidence, knowledge and finance, while men cite time and family situation as the main obstacles.
- Sweden must take advantage of the great interest that exists in running a business, especially now that we see that bankruptcies are increasing and new businesses are declining. The negative spiral needs to be broken. The fact that the influence of the economy is one of the biggest obstacles to taking the step and becoming an entrepreneur also shows that entrepreneurship is still to some extent a class issue," says Olle Lundin, CEO of Froda.
Entrepreneurship in Sweden is still dominated by men, the elderly and high-income earners. 68% of entrepreneurs are men, seven out of ten entrepreneurs have a higher disposable household income than the average Swede and 32% are aged 65 or over. The share of female entrepreneurs in Sweden is lower than the EU average and the trend does not seem to be reversed. The report shows that not only are fewer women than men running businesses today, but also that women are less likely to want to start a business.
At the same time, the report shows that there is a high level of entrepreneurship among foreign-born people in Sweden. A full 5 percent of all foreign-born people in Sweden are entrepreneurs, which is just below the national average of 6 percent. Foreign-born women stand out and are more entrepreneurial than native-born women with two native-born parents.
- "Unfortunately, there is still a challenge with diversity and inclusion in the business world. Therefore, it is particularly gratifying to see that there is a high level of entrepreneurship among foreign-born people," says Olle Lundin, CEO of Froda.
The report shows that economic conditions, a unique business idea and more knowledge about entrepreneurship would make more Swedes dare to take the step to start a business.
Read the report at: https://froda.se/rapporten-dri...
Facts from the report:
- 52% of the population have considered starting a business.
- 6% of the population runs a business. Of which 8% of men and 4% of women in Sweden are entrepreneurs.
- The main drivers are being able to work on what I want (63%), planning my own time (50%) and being my own boss (43%).
- Continued challenge related to gender equality where women are less likely than men to say they have considered starting a business and are also under-represented when it comes to being an entrepreneur. Two-thirds of all entrepreneurs are men.
- Women and younger entrepreneurs are held back by a lack of finance and confidence.
- The most common concern for entrepreneurs and non-entrepreneurs was how their personal finances and income would be affected. More than four out of ten would start a business if money were not an issue.
- The share of those who have considered starting their own business increases with household income. Among those with the lowest household income, 47% have considered starting their own business. Among those with the highest household income, the corresponding figure is 57%.
- Immigration is crucial for increasing the number of entrepreneurs. Just over one in six entrepreneurs in Sweden is foreign-born. There is a higher proportion of women among foreign-born entrepreneurs compared to domestic-born entrepreneurs with two domestic-born parents (35% vs. 31%).
- Among those born outside Europe, half highlight access to finance as one of the main obstacles.
- A quarter of Sweden's entrepreneurs are located in Stockholm and more than half are active in the three metropolitan counties. However, the proportion of entrepreneurs is highest in Gotland and Jämtland, where one in ten inhabitants is an entrepreneur (10%). Fewer are found in Blekinge, Södermanland, Västmanland, Örebro and Östergötland, where only five percent of the population are entrepreneurs.
What is the state of Swedish entrepreneurship?
Six percent of the Swedish population are entrepreneurs, of which 8 percent of men and 4 percent of women are entrepreneurs. This means that two out of three entrepreneurs in Sweden are men.
A quarter of Sweden's entrepreneurs are in Stockholm and more than half are active in the three metropolitan counties. However, the proportion of entrepreneurs is highest in Gotland and Jämtland, where every tenth inhabitant is an entrepreneur. On the opposite side of the spectrum, Blekinge, Södermanland, Västmanland, Örebro and Östergötland have half as many entrepreneurs and only five percent of the population are entrepreneurs. Women and people with a foreign background are underrepresented when it comes to being entrepreneurs. Two thirds of all entrepreneurs are men and three out of four entrepreneurs are native-born with two native-born parents.
How the report is made:
The Driv report is published by Froda, and is based on Statistics Sweden's register-based labor market statistics (RAMS) in 2021 and a survey via Norstat's nationally representative web panel that includes 6,511 respondents. The survey was conducted in February 2023.
Entrepreneurship is an important part of Swedish society and the report aims to provide a deeper understanding of what drives entrepreneurs to start businesses and what barriers prevent others from doing the same.
Posted
June 19, 2023
