Nicosia: A survey has shown that 39.8% of Cypriots believe that there are opportunities to start a business in Cyprus, while 60.5% believe they have the skills to do so, but 53.3% fear failure.
According to Cyprus News Agency, the findings of the 2023/2024 National Entrepreneurship Report for Cyprus were published by the University of Cyprus Entrepreneurship Center. Cyprus is participating for the eighth year in the Global Entrepreneurship Monitor (GEM), which produced the report and is a tool for providing a reliable overview of a country’s entrepreneurial activity.
The presentation of the findings was welcomed by the Minister of Energy, Commerce and Industry, George Papanastasiou, who said that GEM has proven to be a particularly useful tool for the Ministry and the government. Its findings provide guidance on entrepreneurship issues and reinforce efforts to promote Cyprus as an attractive destination for business activity.
In Cyprus, there are approximately 125,000 businesses, employing around 500,000 people. Of these, 119,000 are very small and employ fewer than 10 people, contributing to the employment of around 190,000 people. Additionally, there are 5,400 small businesses employing between 10 and 49 people, providing jobs for around 100,600 people. In the medium-sized enterprise category, which employs between 50 and 249 people, there are 858 companies, employing approximately 82,500 people. Meanwhile, 155 companies in Cyprus employ more than 249 employees and provide jobs for approximately 125,500 people.
Papanastasiou highlighted the growing optimism among Cypriots regarding business opportunities, noting an increase in the percentage of adults who believe there are good opportunities for starting a business, reaching 39.8%. He also mentioned the rise in new business ownership in Cyprus, reaching 4.7% from 3.9% in 2020, positioning Cyprus sixth in Europe in terms of established ownership. This further enhances the positive image of Cyprus’s business environment.
Papanastasiou emphasized the Ministry’s commitment to supporting businesses as they play a decisive role in achieving the government’s objectives regarding the development and strengthening of the competitiveness of the Cypriot economy. He referred to the priority of promoting the 2025-2030 policy document on competitiveness and internationalization of the Cypriot industry, which aims to create a flexible and technologically innovative industrial landscape.
The Ministry is implementing specific actions and policies to support entrepreneurship, including grant schemes to facilitate access to finance and improve the liquidity of businesses. The Ministry’s goal is to provide incentives to the business community to make investments that strengthen the competitiveness of Cypriot businesses, leveraging technology and opportunities arising from the green and digital transition.
The Industry and Technology Service has secured a total of £362 million for the current programming period until 2027, to be allocated through targeted grants. Regarding new entrepreneurship grant schemes, the Ministry has secured £40 million compared to £21.7 million in the previous period. The scheme has been announced for the second time with a total budget of £20 million.
Papanastasiou addressed the fear of failure among Cypriots, stating that those who fail are often either unprepared to take risks or take excessive risks. He emphasized the importance of taking manageable, calculated risks for business success.
The survey in Cyprus was conducted with a representative sample of 2,000 adults aged 18-64 and 36 experts between May and June 2023. The findings were presented by Dr. Ariana Polyviou, Lecturer at Cyprus University of Technology. The percentage of adults who believed in good opportunities to start a business increased significantly to 39.8% from 26.8% in 2022-23. The percentage of those who said they had the skills to start a business rose to 60.5% from 52.7%, well above the European average of 51.8%.
The survey revealed that the fear of failure rose to 53.3% from 51.7% in the previous period, significantly higher than the European average of 45.1%. The percentage of people who said they knew an entrepreneur reached 66.9%, compared to the European average of 52.1%.
The TEA index, which refers to early-stage entrepreneurship, shows that 11% of the population in Cyprus is starting or running a new business, up from 8.3% in 2022-23 and above the European average of 9.2%. Regarding gender equality, men in the early stages of entrepreneurial activity account for 14.5%, while women account for 4.9%, with a ratio of 0.6, below the European average of 0.7.
The University of Cyprus Entrepreneurship Center made recommendations based on the findings, such as incorporating financial literacy into the curriculum, training teachers in entrepreneurial teaching methods, creating programs to guide students in start-up creation and development, and offering short courses to higher education graduates.
Regarding government procedures and policies, it recommends creating regional entrepreneurship councils with active entrepreneurs and providing incentives for synergies between universities and new businesses. It also suggests offering grants and advisory support to women and vulnerable groups.
The Center proposes providing incentives to existing businesses to invest in early-stage businesses, creating tax incentives for global investment funds to participate in business investments in Cyprus, and creating innovation funds linked to public sector needs.
It also suggests creating services offering guidance on digital strategy and access to digital tools, providing grants for technology upgrading, developing physical infrastructure, and creating a national network of mentors with experienced entrepreneurs in key sectors.