Scottish Government

6 Attitudes to Enterprise

Attitudes to business

6.1 The following statements relate to general attitudes towards business:

Table 14: Attitudes to business

Base = All Scotland respondents (2005 n= 2010; 2003 n= 2001). Figures in bold are statistically significant changes. *The wording of this statement was slightly different in 2003 ("Many people who are highly successful in business have low morals or ethics")

'I admire people who start their own business'

6.2 The vast majority of working-age adults (95 per cent) admire people who start their own business. The level of agreement here is at a similar level to 2003 (96 per cent). The results in England are at similar levels.

6.3 Women are more likely to agree with this statement than men (96 per cent compared to 94).

'It is important that as well as making money for the owners, businesses are also good for society, the community and the environment'

6.4 This is a new statement introduced in the 2005 survey. The vast majority of respondents (93 per cent) agree. There are no significant differences in the level of agreement between Thinkers, Doers and Avoiders. Again, results in England are at a similar level.

6.5 Women are more likely to agree with this statement than men (94 per cent compared to 91). Older people aged 55-64 are the least likely to agree (89 per cent).

'People who start and fail at business deserve a second chance'

6.6 The vast majority of adults (89 per cent) agree that people who fail in business should be given a second chance. There are no demographic differences in the level of agreement here in the 2005 survey, although the proportion disagreeing has declined by 3 per cent since 2003.

6.7 Fewer people disagree with this statement in Scotland (5 per cent) than in England (7 per cent).

'I would encourage a friend or relative to start a business'

6.8 The percentage of adults in Scotland agreeing with this statement stands at 68 per cent, compared with 66 per cent in England. Compared to 2003 the proportion disagreeing with the statement has declined by three per cent.

6.9 Thinkers and Doers are equally likely to agree with this statement (77 per cent). Among Avoiders only 66 per cent agree in Scotland, 62 per cent in England.

6.10 Women are more likely to agree with this statement than men (71 per cent compared to 66).

6.11 The 25-34 year old age group is more likely to agree with this statement than other ages (73 per cent).

6.12 Agreement is much higher among people with dependent children (73 per cent) compared to those with no dependents (65 per cent).

'I would rather work for a small business than a large business'

6.13 A slight majority (52 per cent) agree that they would prefer to work for a small company, though only 25 per cent disagree (the remainder did not know).

6.14 Avoiders are less likely to want to work in a small business (49 per cent) than either Thinkers (61 per cent) or Doers (65 per cent).

6.15 Adults aged 55-64 are more likely than average to agree that they would prefer to work for a small business (65 per cent). Respondents aged 25-44 are less likely than average to agree (47 per cent).

6.16 As one might expect, those who are self-employed or who own businesses are more likely than average to agree (63 and 61 per cent respectively), compared to those in full-time employment (45 per cent). It is also the case that the fewer qualifications a person has, the more likely they are to prefer to work for a small business (63 per cent of those with no qualifications agree, compared to 45 per cent of those with SVQs level 4-5).

'Success in business often requires businessmen to have low morals or ethics²⁸'

6.17 A quarter of Scottish adults agree that success in business requires businessmen to have low morals or ethics. This is considerably lower than agreement in 2003 (35 per cent). However, this may be because of the different phrasing of the question this year (see footnote).

6.18 Unsurprisingly, Doers are less likely than the average for all respondents to have a low opinion of businessmen (16 per cent).

6.19 This is also the case with women (21 per cent compared to 29 per cent of men).

6.20 Compared to people in England, those in Scotland are significantly more likely to disagree with this statement (64 per cent Scotland, 60 per cent England).

Attitudes to risk and debt

Table 15: Attitudes to risk and debt

Base = All Scotland respondents (2005 n= 2010; 2003 n= 2001). Figures in bold are statistically significant changes.

'I am scared of being in debt'

6.21 Fear of debt remains high with three-quarters agreeing with this statement.

6.22 Fear of debt is highest amongst Avoiders (77 per cent), and there is less agreement with the statement amongst Thinkers (65 per cent) and Doers (64 per cent). It is also noticeable here that fear of debt amongst Ordinary Thinkers (71 per cent) is higher than among Serious Thinkers (61 per cent).

6.23 Women are far more likely to fear debt than men (82 per cent compared with 67). Fear of debt is also higher than average amongst young people - 83 per cent of 16-24 year olds agreeing that they are scared of running into debt.

6.24 Fear of debt is slightly higher in Scotland than in England (75 per cent compared to 73 per cent), although this finding is not quite statistically significant.

'I enjoy the challenge of situations that many consider risky'

6.25 More than half of adults agree that they enjoy the challenge of situations some may consider to be risky (59 per cent). This is consistent with findings in 2003, although there has been a decline in the proportion of adults disagreeing with this statement (from 35 per cent to 30 per cent).

6.26 Thinkers and Doers are less likely than Avoiders to be risk averse - 78 per cent of Thinkers and 71 per cent of Doers agree, compared with just 55 per cent of Avoiders.

6.27 Men are much more likely than women to enjoy risky situations (67 per cent compared with 52 per cent). For women this percentage has risen by 4 per cent on the 2003 figure.

6.28 Enjoying risky situations also correlates closely with age. Agreement amongst 16-24 year olds (75 per cent) is higher than among 25-34 year olds (61 per cent). This pattern continues so that agreement amongst 55-64 year olds is just 53 per cent.

6.29 It is also the case that those with qualifications are far more likely to enjoy risky situations than those without (50 per cent agreement among those with no qualifications, 61 per cent everybody else). The main reason for this is linked to age - those without qualifications tend to be older.

6.30 Agreement and disagreement levels with this statement were very similar for both England and Scotland.

'I avoid taking risks wherever possible'

6.31 The proportion of adults in Scotland agreeing that they avoid taking risks has declined slightly since 2003 by 3 per cent (from 61 per cent to 58), a statistically significant change. This mirrors a similar decline seen amongst adults in England (from 60 percent to 56 ²⁹).

6.32 Avoiders are more likely than Thinkers to avoid risk wherever possible (59 per cent compared with 44). Interestingly, Doers are as likely to avoid risks as Avoiders (59 per cent agreed), whereas in England Doers are the least likely to avoid risk (46 per cent compared with 57 per cent of Avoiders and 50 per cent of Thinkers).

6.33 Women are more likely to avoid risk than men (61 per cent compared with 54). Women appear to be less risk averse than they were in 2003 (when 65 per cent agreed that they avoid risk whenever possible), whereas agreement amongst men has remained largely unchanged.

6.34 Respondents aged 55 and over are much more likely to avoid risk; 68 per cent of 55-64 year-olds in Scotland agree. Amongst all age groups under the age of 30, respondents are less likely to agree that they avoid risk; 48 per cent of 16-30 year olds express agreement in Scotland.

6.35 Those who are in full-time employment are the least risk averse (54 per cent), and those who are unemployed are the most risk averse (69 per cent).

6.36 Those with no qualifications are more risk averse (73 per cent) than those who have them, especially those with SVQs level 4-5 (46 per cent).

6.37 Once again, agreement and disagreement levels with this statement were very similar for both England and Scotland.

'I would not feel confident speaking to a bank manager about getting a business loan'

6.38 Approaching a third (30 per cent) agree that they would not be confident in speaking to a bank manager about a business loan, slightly higher than is seen in England (26 per cent).

6.39 Avoiders are significantly more likely than Doers and Thinkers to agree that they would not feel confident about getting a bank loan (32 per cent of Avoiders, 19 per cent of Doers and 21 percent of Thinkers). Interestingly, in England Thinkers are just as likely to agree as Avoiders that they would not feel confident.

6.40 Ordinary Thinkers in Scotland are less confident than Serious Thinkers (24 per cent agree with the statement, compared to 18 per cent).

6.41 Unlike the findings from England, men in Scotland are just as likely to agree that they would not feel confident in speaking to a bank manager as women (both 30%). In England, 28 per cent of women agree they would not feel confident compared with 25 per cent of men - a significant finding.

6.42 There were no significant differences in confidence by age in Scotland, whereas in England, adults aged under 25 were slightly more likely to agree that they would not feel confident than older adults.

6.43 Those in full time employment are more confident than the unemployed (27 per cent agree, compared to 43 per cent). Again, there is also a correlation with education, with those with no qualifications being the least confident (45 per cent agree).

Key enterprising traits

Table 16: Key enterprising traits

Base = All Scotland respondents (2005 n= 2010; 2003 n= 2001). Figures in bold are statistically significant changes.

I'm the sort of person who always tries to make organisations I belong to function better'

6.44 Eighty-six per cent of Scottish adults agree with this statement, a similar proportion to that seen in 2003. A similar proportion agreed in England.

6.45 Thinkers are most likely to be in agreement with this statement (94 per cent). Doers are also more likely to agree (89 per cent) than Avoiders (84 per cent).

6.46 Men are more likely than women to agree with this sentiment (87 per cent compared with 84 per cent).

6.47 Young people are less inclined to feel that they make a difference. The level of agreement among those aged 16-18 was 66 per cent. Agreement was highest amongst 35-44 year olds where nine in ten feel that they help organisations to function better. This may reflect their position on the career ladder, where older respondents tend to have more influence in their organisations.

6.48 Whereas 90 per cent of the full-time employed agree with this statement, only 77 per cent of the unemployed hold this sentiment. There is also a correlation with education, where only 79 per cent of those with no qualifications agree.

'I am an imaginative and creative person'

6.49 Three-quarters of adults (74 per cent) view themselves as being creative and imaginative people - a similar proportion to that seen in 2003. The findings for England are similar.

6.50 Doers, and particularly Thinkers are more likely to agree with this statement (82 per cent and 93 per cent respectively). Avoiders are less likely to agree that they are creative (70%).

6.51 There is no significant difference in agreement between men and women.

6.52 Older adults are less inclined to be creative than their younger counterparts, even though the majority still agree with the statement; 81 per cent of 16-30 year-olds agree compared to 70 per cent of 35-64 year olds.

6.53 Those with no qualifications are less likely to consider themselves imaginative and creative - 64 per cent, compared to 76 per cent who have qualifications.

'I have the skills/knowledge to be able to start a business'

6.54 There has been a slight but statistically significant decline in the proportion of adults who agree that they have the skills and knowledge with which to start a business. Sixty-five per cent agreed in 2003 compared to 62 per cent in 2005. Agreement in 2005 is similar to the level seen in England in 2005 (63 per cent) where a slight decline has also been recorded since 2003.

6.55 As one would expect, Doers (91 per cent) and Thinkers (90 per cent) are much more likely to agree compared to Avoiders (54 per cent). As was also seen in England, the overall decrease in the level of agreement since 2003 is common to all three respondent types, although only amongst Doers (from 96 per cent) and Avoiders (from 58 per cent) was the decline in Scotland statistically significant ³⁰.

6.56 Women are less likely to agree than men (53 per cent compared to 71 per cent in England).

6.57 The young are less likely to agree than older people. Fifty per cent of 16-24 year olds agree compared to 66 per cent of 45-54 year olds. The decline in agreement since was also most evident amongst the younger age groups, particularly 16-24 year olds (amongst whom 57 per cent agreed in 2003).

6.58 As would be expected, those with higher qualifications are more likely to think they have the necessary skills with which to start a business - 72 per cent of those with SVQ level 5 agreeing, compared to just 50 per cent of those with no qualifications.

6.59 Those with degrees or diplomas in business studies are also more likely to agree - 84 per cent. However, those who only have standard grades in the subject are no more likely to agree than those with no business qualifications at all (both 63 per cent agree).

Business in the media

Table 17: Business in the media

Base = All Scotland respondents (2005 n= 2010; 2003 n= 2001). Figures in bold are statistically significant changes.

'I often see success stories about running a business in the media'

6.60 Just over half (54 per cent) of respondents say that they often see business success stories in the media. Although similar to the result in England, this represent a fall in agreement in Scotland since 2003 (from 59 per cent).

6.61 There are no significant variations in agreement according to whether respondents are Thinkers, Doers or Avoiders, or by gender. By age, adults aged 16-24 are less inclined to agree (48 per cent).

6.62 Full-time employees are more likely than average to agree (56 per cent), whilst students are the least likely to agree (41 per cent).

'The media presents a generally negative image of small businesses and often features bad news stories'

6.63 As was the case in 2003, respondents are divided as to the extent to which the media presents a negative image of small businesses. The overall finding in Scotland is that 42 per cent agree that the media's presentation is generally negative which is similar to the levels of agreement seen in 2003. This is also similar to the level of agreement seen in England in 2005.

6.64 By entrepreneurial status, there is little difference in agreement, although Thinkers are more inclined to agree (46 per cent). Overall levels of agreement and disagreement were identical for men and women.

6.65 Older respondents are more inclined to agree with this statement (47 per cent amongst 45-54 year olds and 54 per cent amongst 55-64 year olds), whereas those aged 25-34 (35 per cent) are less inclined to agree (agreement amongst 16-24 year olds in in-line with the average.

6.66 Students are the least likely to agree with this sentiment (31 per cent), and the retired the most likely to agree (53 per cent).

Education, skills and knowledge

6.67 In the 2005 survey a new statement was added: ' The education system in this country provides the necessary skills and knowledge to enable people to start and run a business'. The scale used to indicate level of agreement differs from other questions in the survey.

Table 18: Extent to which education system enables people to start and run a business

Base = All

6.68 Just 5 per cent overall in Scotland consider that the education system provides the necessary skills and knowledge 'very well', with a further 30 per cent stating 'fairly well'. Thus, 35 per cent think the education system does well (compared to only 29 per cent in England).

6.69 In Scotland Avoiders are more likely to think the education system performs well (37%) than Doers (27%) and Thinkers (28%).

6.70 16-24 year olds are the age group most likely to think the education system does well (43 per cent), and are the only age group who are positive overall (34 per cent say it does poorly). However, from the age of 19 upwards people are generally negative. This demonstrates that those still in education, or who have recently left it, are far more positive about the way it prepares people for business than older people. The same is also true for England.

6.71 Forty-seven per cent of students think the system does well.