Are many Swedes tricked into becoming entrepreneurs when they lack the skills and drive?
Thursday, 13 September 2012
As the Swedish unemployment continues to rise and the government
lacking skills on how to stem the persistent joblessness of some
sections of the workforce, business start up has been sold as one of
the ways to improve people's ways of life.
As such, the government has been encouraging many people to start
business and many have taken that advice as a means to create something
for themselves but he question being asked is whether all these people
can really start and run a business,
Former Swedish Prime Minister, now a consultant, Goran Persson
feels that the government have lured many people to become entrepreneur
and that is wrong.
What he is
concerned about the trend is that the unemployed are staring their own
companies with the contribution from the Employment Service, but
without proper market research and knowledge that there is demand for
their company's product or service.
He also believes that the timing is not the best. To start a new
business now, when the economy is uncertain is extra difficult. The
question is how demand is created in the economy such that these
products or services can be sold.
For Persson's own company, where there is income from both PR
consultancy and from agriculture, it is going well. Earnings in 2011
ended up at nearly Skr3.5 million.
The former Prime Minister thinks that business conditions in Sweden are
still good. He does not like the governing coalition, Alliance's
ambition to reduce corporate tax. As a farmer, he sees a reduction in
employer contributions as very important.
As the Swedish unemployment persistently remain high and corporation
watch situation cautiously, the government ha been encouraging
individuals to start heir own businesses. Despite long term, unemployed
have taken the plunge irrespective of the strong lack of knowledge.
Starting a small business in Sweden is extremely hard compared to other
places such as in the USA or even the UK. However, big companies would
thrive very well in Sweden.
According to the Global Entrepreneurship Monitor's latest survey, which
in Sweden it covered 3,000 individuals, one of the reports show that
that almost 6 percent of Swedes were engaged in some form of
entrepreneurship last year.
Within the population that is not already entrepreneurs, 31 percent
believe that they have sufficient knowledge to operate their own
company. Of these, 74 percent said there are good opportunities to
start a business in their local area during the next six months.
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