startup intent — Cyprus shows strong startup intent, yet structural challenges hinder the establishment of new businesses, as highlighted in the 9th national entrepreneurship report conducted by the Global Entrepreneurship Monitor (GEM). The findings were unveiled during a presentation at the University of Cyprus, attended by stakeholders from academia, business, and government.
Startup intent: Positive Entrepreneurial Outlook Amidst Challenges
The report for the 2024-2025 period reveals that 40.2 per cent of adults in Cyprus perceive good opportunities to start a business, reflecting a positive trend consistent with previous years. Furthermore, 47.8 per cent of respondents indicated that they find it easy to launch a business, a figure that aligns closely with the European average.
Confidence and Intentions on the Rise
Confidence in personal entrepreneurial capabilities is notably high, with 59.9 per cent of Cypriots believing they possess the necessary knowledge, skills, and experience to start a business. This confidence is bolstered by a strong network of entrepreneurs, as 68.3 per cent of adults report knowing someone who has started a business.
Entrepreneurial intention is also promising, with 24.1 per cent of the population planning to start a business within the next three years, exceeding the European average. Despite this encouraging landscape, the fear of failure looms large, influencing 50.8 per cent of citizens who hesitate to pursue entrepreneurial ventures.
Current State of Entrepreneurship
In terms of actual entrepreneurial activity, early-stage entrepreneurship in Cyprus is reported at 9.7 per cent, while established businesses see an increase to 8.4 per cent. The data suggests that young individuals and those with higher educational attainment are more inclined towards entrepreneurship, although a significant gender gap remains evident in early-stage business ownership.
Growth Prospects and Digital Orientation
Looking to the future, 38.3 per cent of early-stage entrepreneurs expect to create six or more jobs within five years, highlighting a positive outlook for job creation. Additionally, there is a marked inclination towards digitalisation and the adoption of new technologies, including artificial intelligence, within the entrepreneurial landscape.
Barriers to Business Creation
Nevertheless, the report identifies significant barriers that hinder the growth of entrepreneurship in Cyprus. Limited integration of sustainability practices and persistent weaknesses in access to finance, entrepreneurial education, research and development, and government support programmes are noted as critical challenges that need addressing.
Collaborative Efforts Needed
Tasos Christofides, rector of the University of Cyprus, commented on the report’s findings, noting, “The results are particularly encouraging as they demonstrate increased confidence and intention among citizens, but they also highlight challenges that require coordinated action from all stakeholders.” The University’s Entrepreneurship Centre is working to bridge academic knowledge, research, and the market by offering educational programmes, acceleration initiatives, and fostering international collaborations.
Government Initiatives to Support Startups
The importance of small and medium-sized enterprises (SMEs) to the Cypriot economy is emphasised by Themis Papasolomontos, Deputy Director of the Department of Industry at the Commerce Ministry. She stated, “Small and medium-sized enterprises form the backbone of the Cypriot economy, contributing to competitiveness, growth and resilience.” To bolster this sector, €227 million has been allocated for business support schemes during the 2021–2027 programming period.
Additionally, an extra €124 million has been earmarked through programmes financed by the Recovery and Resilience Facility, further reinforcing the government’s commitment to nurturing entrepreneurship and innovation in Cyprus.
The Path Forward
As the GEM report illustrates, while there is a robust intent to start businesses in Cyprus, structural hurdles remain a significant impediment. Addressing these challenges through collaborative efforts between government bodies, educational institutions, and the business community is essential for fostering a more conducive environment for entrepreneurship.
