The 2000 Global Entrepreneurship Monitor ranked Sweden the 5th least entrepreneurial of 21 nations on its Entrepreneurial Activity Index (TEA). The start-up rate has been stagnant for past 5 years. Swedish industrial policies have traditionally focused on large enterprises and individual sectors. Personal income and corporate taxes are high, and there is much personal and corporate debt outstanding with high interest rates. Only a few little-known programs for stimulating entrepreneurship exist. The Swedish favor entrepreneurship, but they don’t accept its failure.

Entrepreneurship is becoming more important in Sweden due to a number of reasons. Recent changes enacted by the Swedish Government in industrial policies have encouraged entrepreneurship among all citizens and strengthened Sweden’s international industrial competitiveness. Since public sector downsizing, small and medium sized enterprises, (SMEs,) have become a more important source of employment. SME policy introduced better and more simplified regulatory systems, as well as a better return on capital. Recognizing the importance of entrepreneurship, entrepreneurial education has been developing. Because of these nationwide changes, a special information system now exists for start-ups to foster new entrepreneurs. However, in the face of these forward thinking economic initiatives, SME policy is still focused on the skill area and less on the opportunity and motivation area. Furthermore, in spite of development initiatives, there is little public interest in entrepreneurship education. Moreover, internet based information systems have developed but mainly on a national level, which left small start-ups very few opportunities.

Important Resources