Entrepreneurship is a key competence for growth, employment and personal fulfilment.
Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions: Implementing the Community Lisbon Programme: Fostering entrepreneurial mindsets through education and learning
COM(2006) 33 final
In February 2005, the Commission proposed a new start for the Lisbon Strategy focusing the European Unions efforts on two principal tasks delivering stronger, lasting growth and providing more and better jobs. The new Partnership for Growth and Jobs stresses the importance of promoting a more entrepreneurial culture and of creating a supportive environment for SMEs.
The capacity of an economy to successfully compete and grow depends on balancing the stock of enterprises through encouraging more start-ups and managing business transfer. Research suggests that there is a positive correlation between entrepreneurship and economic growth, particularly in high-income countries, although GDP growth is influenced by many other factors. Sustainable growth based on innovation and excellence requires an increasing number of start-ups, which are likely to provide more and better jobs. Countries exhibiting a greater increase in entrepreneurship rates tend to exhibit greater subsequent decreases in unemployment rates.Moreover, social systems are increasingly under pressure due to the shrinking labour force. If Europe wants to successfully maintain its social model, it needs more economic growth, more new firms, more entrepreneurs willing to embark in innovative ventures, and more high-growth SMEs.