Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past decade, successive governments have privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. In Portugal, economic growth had been above the EU average for much of the past decade, but fell back in 2001-05. GDP per capita stands at two-thirds that of the Big Four EU economies.

A poor educational system, in particular, has been an obstacle to greater productivity and growth. Portugal has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a target for foreign direct investment. The government faces tough choices in its attempts to boost Portugal’s economic competitiveness while keeping the budget deficit within the eurozone’s 3%-of-GDP ceiling.

According to a 2001 report from the Global Entrepreneurship Monitor, Portugal ranked 21st in total entrepreneurial activity. It placed ahead of Germany but behind France. The report also stated that Portuguese entrepreneurs were evenly distributed in terms of age. However, men were twice as likely as women to engage in entrepreneurial activity.

COTEC, founded in 2003, is an organization of the largest 105 companies in Portugal. One of its objectives is broadening awareness of entrepreneurship through education. Meanwhile, the Portuguese government plans to create a program which will provide venture funding for small companies. In addition, universities in Portugal are increasing education in entrepreneurship and innovation to students.

Entrepreneurship in Portugal appeals to many investors, for the Portuguese government endeavors to promote foreign investment. This is encouraged through their government agency entitled the API (Agency for Investment in Portugal). It emerged from the ICEP (Investment, Commerce, and Tourism) that offered incentives to investors, such as the ability to make investments after registering with the ICEP within thirty days after making their initial investment. Portugal has found that, regardless of their strong work ethic, adaptability, and frugality, their poor educational system has been an obstacle in their growth in productivity. Many of its citizens have emigrated due to their economic weakness.

Then, too, it has become an increasingly service-based economy where cultural support has been positively linked with the amount of entrepreneur activity. There is a definite need to enhance positive attitudes toward entrepreneurship. Portugal’s mindset toward entrepreneurship is synonymous with the EU, it needs refueling. It is noteworthy that Portugal is near to achieving entrepreneurial parity between men and women. The total entrepreneur rate is 3.95%, whereas men stand at 4.10% and women stand at 3.81%. Furthermore, the percentage rate for women within the EU is 29%, and Portugal’s women stand at 18% within that comparison.

Seemingly, the incentive for Portugal’s citizens to delve into entrepreneurship should be ignited by their GDP per head. It is presently at US $11,808. With globalization abounding worldwide along with government incentives, the numbers of entrepreneurs in Portugal among men and women are increasing.

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