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EU Entrepreneurs

DW staff (sms)October 9, 2007

Citizens of the 10 countries which joined the European Union in 2004 are closer to the United States than "Old Europe" in their attitudes to entrepreneurship, according to figures released on Monday, Oct. 8.

A person jumping into a pool with no one else in it
People living in the newer EU member states are more willing to take the new business plungeImage: PA/dpa

People in the older EU member states seem to find working for the man preferable to being the man as just 28 percent of them said it's desirable to become self-employed.

Some 40 percent of citizens in new member states, however, find the idea attractive, compared with 42 percent of US citizens, the poll by EU's Eurobarometer polling agency found.

Among young people, citizens of the new member states are even keener than their US counterparts to start a business, with 62 percent of "new" Europeans in favor of the idea, against 57 percent in the US and 51 percent within the EU as a whole.

In 2004, the EU enlarged to take in 10 new members, eight of them in central and eastern Europe. The bloc grew again at the beginning of 2007 to include Bulgaria and Romania, which were not included in the survey.

Aversion to risk

Oficials promise less bureaucracy than ever before for EU entrepreneursImage: Bilderbox

Citizens of older EU states, particularly Germany, have long eschewed starting their own businesses, which many deem a risky venture, in favor of a regular monthly paycheck and the benefits of job security, which is guaranteed to many civil servants and long-time employees.

While those living in newer EU member countries are less wealthy than long-standing EU members, most have been marked since their accession by red-hot economic growth, falling unemployment and growing consumption levels.

That enthusiasm for the free market is clearly shown in the Eurobarometer report, with the new member states more pro-entrepreneurship and less risk-averse than the older ones.

Cheaper than ever

However, the "old" Europe's distaste for launching a new business could soon find itself sweetened, according to another report released by the European Commission, the EU executive body, on Monday.

According to the report, the average cost of setting up a new company in the 15 states which joined the EU before 2004 fell from 813 euros ($1,150) to 554 euros between 2002 and 2007.

The administrative procedures required to register a company were cut from 24 days to 12 days over the same period, the report said.

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