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Classification of economies by geographic region is based on that of the United Nations Statistics Division. However, the groupings are slightly different due to the s of economies covered. For GEM, the low income group contains both those classified as low income and lower middle by WEF, and the middle income group has those that WEF groups as upper middle. Much as is the case in Latvia, this dynamic between a low entrepreneurial intentions rate and a high pandemic influence rate suggests that the pandemic has discouraged many potential entrepreneurs.

Considering the high rate of new prospective entrepreneurs influenced by the pandemic inone would expect in Luxembourg at least some increase in the total intentions rate overyet there was a small decline. This may suggest that many potential entrepreneurs from decided to delay or perhaps drop their intentions to start a business over the next three years having assessed the new pandemic realities.

This suggests a majority of those involved in TEA are not able to pivot to accommodate the new pandemic-led realities.

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This is concerning, given the critical function of finance to entrepreneurship. Policymakers must therefore monitor the availability of entrepreneurial finance, particularly with measures of entrepreneurial activity such as TEA having declined in Luxembourg in This sentiment may be shared by experts, as the governmental response to the pandemic in Luxembourg scored 6.

Yet the increased availability of professional services may be offset by an overly competitive domestic market, discouraging new entrants. However, this improvement resulted in a ranking of only 41st among GEM economies. This may be due to the small size of the Luxembourg market, which makes entry to it extremely competitive. It is difficult to respond to the pandemic when such barriers exist. Back to Economy Profiles. GDP Growth: 1. Economy Profile Policy Brief. Perceived Opportunities Rate: Percentage of population individuals involved in any stage of entrepreneurial activity excluded who see good opportunities to start a firm in the area where they live.

Perceived Capabilities Rate: Percentage of population individuals involved in any stage of entrepreneurial activity excluded who believe they have the required skills and knowledge to start a business. NOTE: this is a percentage of those seeing good opportunities, and not the total adult population. Entrepreneurial Intentions Rate: Percentage of population individuals involved in any stage of entrepreneurial activity excluded who are latent entrepreneurs and who intend to start a business within three years.

Perceived Opportunities Rate 2. Perceived Capabilities Rate 3. Entrepreneurial Intentations Rate:. Total early-stage Entrepreneurial Activity TEA : Percentage of population who are either a nascent entrepreneur or owner-manager of a new business. Established Business Ownership Rate: Percentage of population who are currently an owner-manager of an established business, i. Entrepreneurial Employee Activity Rate: Rate of involvement of employees in entrepreneurial activities, such as developing or launching new goods or services, or setting up a new business unit, a new establishment or subsidiary.

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Established Business Ownership Rate 3. Entrepreneurial Employee Activity Rate. Motivational Index: Percentage of those involved in TEA that are improvement-driven opportunity motivated, divided by the percentage of TEA that is necessity-motivated. Motivational Index. High Job Creation Expectation Rate 2.

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Innovation Rate 3. Business Services Sector Rate. High Status to Successful Entrepreneurs Rate: Percentage of population who agree with the statement that in their country, successful entrepreneurs receive high status.

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Entrepreneurship as a Good Career Choice Rate: Percentage of population who agree with the statement that in their country, most people consider starting a business as a desirable career choice. High Status to Successful Entrepreneurs Rate 2.

Entrepreneurship as a Good Career Choice Rate. Spider Bars. Scroll to the top. Luxembourg Reports. Entrepreneurial activities are in decline in Luxembourg inand some of the measurement indicators are at their lowest sinceyear in which Luxembourg ed the GEM project. Despite the overall negative impact of the pandemic, some entrepreneurs report that the COVID crisis has provided them with new business opportunities to pursue. Entrepreneurial activities have slowed down in Europe during Luxembourg suffered a decrease comparable to other European countries.

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