Cyprus continues to record positive performance in terms of entrepreneurial perception and intention towards entrepreneurial activity, according to the findings of the 9th National Report on Entrepreneurship in Cyprus 2024/2025 – Global Entrepreneurship Monitor (GEM).
However, significant structural challenges remain, limiting the conversion of entrepreneurial intention into the actual creation of new businesses, the report also notes.
It was presented at the University of Cyprus, with the participation of representatives from academia, the business community, and the public sector.
According to the report, 40.2% of adult people in Cyprus believe there are good opportunities to start a business, maintaining the positive trend observed in recent years. At the same time, 47.8% consider it easy to start a business, a rate close to the European average.
Citizens’ confidence in their entrepreneurial capabilities also remains particularly high, with 59.9% stating that they possess the necessary knowledge, skills, and experience to start a business. In addition, 68.3% reported personally knowing an entrepreneur, highlighting the strong presence of entrepreneurial networks in Cyprus.
Entrepreneurial intention also appears strengthened, with 24.1% of participants stating that they expect to start a business within the next three years, a rate higher than the European average.
Despite the positive outlook, fear of failure continues to act as a deterrent for a significant part of the population. According to the findings, 50.8% of citizens stated that fear of failure affects their decision to engage in entrepreneurial activity.
In terms of actual entrepreneurial activity, the Total Early-stage Entrepreneurial Activity (TEA) rate in Cyprus stands at 9.7%, while established business ownership increased further, reaching 8.4%.
The report also records that entrepreneurial activity in Cyprus is more prominent among younger individuals and those with higher levels of education, while a significant gender gap in early-stage entrepreneurship continues to persist.
Special reference is also made to the growth prospects of new businesses, as 38.3% of early-stage entrepreneurs expect to create six or more jobs within the next five years. At the same time, there is an increased orientation towards digitalisation and the use of new technologies, including artificial intelligence.
The report also identifies that the integration of sustainability practices into businesses remains limited, while weaknesses continue to exist in areas such as financing, entrepreneurial education, research and development, and government support programmes.
The overall conclusion was that Cyprus now has a relatively strong foundation for the development of entrepreneurship. However, fully unlocking its potential requires the continuation of reforms, the strengthening of innovation, and addressing the structural constraints that continue to affect the growth and scaling-up of new businesses.
(Source: CNA)
