Editor's note

International Internet Magazine. Baltic States news & analytics Friday, 31.05.2024, 00:35

“Knowing entrepreneurship”: challenges for the Baltics’ authorities

Eugene Eteris, BC, Riga/Copnehagen, 16.03.2018.Print version

There at least two main world’s resources for analysing entrepreneurship: the World Bank yearly reports “doing business” and the OECD regional/national analysis. For already eight years the Amway reports are becoming popular as well. These reports make policy makers better understand the ways to assist business.

Amway-Global-18 report is an additional effort to both better understanding general people’s entrepreneurship intentions and governments’ assistance. Among other efforts are, for example, yearly reports by the World Bank (see web-ling below) and the OECD analytical reports. All these global community’s “efforts” are aimed at stimulating public authorities in making better decisions concerning peoples’ intentions to start a business carrier and enter entrepreneurship. More entrepreneurs mean more realised peoples’ opportunities, more economic growth, more prosperity and more happy citizens.


“Business sector” according to Amway-Global report

Amway is an $8.6 billion direct selling business based in State Michigan, USA. Global sales in 2016 made Amway the No. 1 in “direct selling business” in the world.

First Amway’s report was launched in 2010 as the Amway European Entrepreneurship Report, and then expanded worldwide with the 2013 AGER’s report, encompassing 24 countries.

The 2018-report covers 44 countries, with in-person and telephone interviews conducted with nearly 49,000 men and women aged 14-99.  

Amway’s President Doug DeVos, argued that “knowledge of entrepreneurship” can help business and public authorities to make decisions and take actions in order to help more people start their own businesses. More entrepreneurs in any states mean more opportunities, more economic growth, more prosperity and more happy people.  

“Personalised service” still matters

When asked what kind of business people would imagine starting, most of them - 75 percent of respondents - chose “serve customers personally” compared to only 25 percent for “serve customers digitally.” That was a surprising finding in a world where technology and selling via social networks seem to be proliferating every day.

This finding was consistent among even the under-35 demographic group, countering the common perception that modern people prefer virtual interaction over interpersonal and indicating that personalized service is still highly valued around the world.

Besides, the Amway’s results indicate that reducing risk and financial burden and investing in personalized services are those aspects of entrepreneurship that may force public authorities to further investigate “the environment” in which the policymakers, businesses community and individual entrepreneurs are living in.  

Main stumbling blocks: risk of failure and getting finances

Highlights of the Amway-2018 report reveal that the risk of failing and the prospect of raising money are key obstacles for potential entrepreneurs:

The results of the survey conducted among 49 thousand people in 44 countries have shown that:

·         About 47 percent were willing to take the risk of failing when it comes to starting a business;

·         Another 38 percent said that theoretically they knew how to raise money for a business idea (though that did not help them in getting financial support); and

·         Raising money was respondents’ number one choice for what would most help them start a business; this priority outranked such issues as: help in dealing with finances, taxes and regulations; identifying customers and marketing products and services; hiring the right people or setting up a business idea.

When it comes to starting a business, “the fear of failure and the ability to raise funds” are of major concerns for people being involved in entrepreneurship, said Amway Chairman Steve Van Andel. “This may explain the rise of the sharing economy or gig economy, where people are increasingly looking for alternative ways to work and to be their own bosses.

It is critical to the public and private sector working together to remove barriers and making the feeling of entrepreneurship accessible to all, Mr. Andel added.

The complete Amway’s report can be found at: https://www.amwayglobal.com/amway-global-entrepreneurship-report/

Other sources: World Bank’s “doing business” reports at: http://www.doingbusiness.org/data/good-practice.

BC’s publication “Measuring governments’ policy effect on business: World Bank analysis. In: http://www.baltic-course.com/eng/modern_eu/?doc=127565&ins_print;

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