A blog from the U.K., called bdaily, reports on a study that once again shows that culture truly contributes to fostering entrepreneurial activity when we look at it from a country level of analysis. The study was conducted by NESTA (National Endowment for Science, Technology and the Arts), which is an endowment devoted to supporting talent, innovation and creativity in the UK. NESTA's mission is to invest in early stage companies, inform innovation policy and encourage a culture that helps innovation to flourish.
Called the "Fear of Failure Report", this study found that 80% of new ideas in the U.K. "never see the light of day." Why?
When asked why, 61% said that they didn't know where to start, 67% claimed not to have sufficient funds and 33% just didn’t have the time....One out of six were worried about losing their home if their business failed and 6% said that the stigma of going bankrupt was affecting their decision not to act on their idea. The research reveals that almost three quarters (74%) said that the fear of bankruptcy was a factor in not going it alone.
The report goes on to conclude:
[O]n the global stage we are lagging behind the US and Canada when it comes to embracing innovation and an entrepreneurial spirit.Jonathan Kestenbaum, NESTA CEO, comments: "The UK's competitive advantage will be directly linked to our capacity for innovation. We simply cannot afford to be complacent and rely on yesterday's solutions. The competition is fierce and we must mobilise business, education and policy around a relentless focus on innovation."
NESTA is on the right track in their efforts to change the outlook of the citizens of the U.K. toward entrepreneurship. Government policy can never be relied upon as the main driver of public attitudes and perceptions. Don't get me wrong -- tax and regulatory reform are critical factors in encouraging entrepreneurial activity. But in a culture where there is a pervasive fear of failure, as this study seems to show, reforming taxes and regulations are just the first step. It will take leadership and vision throughout society to create such a change.
(Thanks to Ben Cunningham for passing this along).
