DESPITE the fact that Cypriots appear to be among the keenest Europeans on being self-employed, according to a poll made known by the Commission yesterday, they prefer the security of a fixed income and job stability. They do not, however, differ drastically from other Europeans who are much less daring than Americans in setting up their own business.
According to the survey, given a choice 56 per cent of Cypriots want to be self employed (EU average 45%) as opposed to only 32 per cent that prefer being an employee (EU average 50%).
Even so, only 53 per cent want to have their own company, towards the bottom line of the EU average which is 60 per cent and well below Greeks who are number two with 78 per cent.
Cypriots prefer a regular fixed income at 54 per cent (EU average 30%) and 56 per cent cherish stability of employment as opposed to the 24 per cent EU average.
The Eurobarometre, carried out in April 2004 with more than 21,000 people interviewed in Europe and the US, tries to answer the question “Why are EU citizens less keen to start up their own business than in the US?”
Asked how desirable it would be for them to become self-employed within the next five years, 55 per cent of Cypriots replied ‘undesirable’ and 44 per cent found it ‘desirable’. The EU average for undesirable stood at 63 per cent and only 33 per cent found it desirable, as opposed to the Americans with 50 per cent and 46 per cent respectively.
To the question why they would prefer self-employment, 69 per cent of Cypriots and an average 77 per cent in the EU, cited personal independence, self-fulfilment and interesting tasks as their main incentive. The majority of Americans mentioned the chance to create their own working environment (61%) as their main reason.
The poll was published in June 2004 but only made known now in a bid to help both the EU Commission and member states understand citizens concerns and formulate relevant policies. This is especially important in view of the re-launching of the stalled Lisbon agenda, aiming at transforming the European into the most competitive by the year 2010.
Although 45 per cent of Europeans want to set up their own business, they lag far behind Americans, at 61 per cent. An explanation, according to deputy director general of the Commission’s DG Enterprise Heinz Zourek, is the fear of failure.
Once a European tries to set up business and fails the person has is stigmatised, whereas in the US even banks give people a second chance, believing they learnt their lesson. Other obstacles include the fear of bankruptcy and the lack of access to financing and support structures.
The Commission official, who admitted more can be done to encourage entrepreneurship, pointed out there are differences between the EU countries, the north and the south as well as the new members and the old.
