1 ST HEC PARIS ENTREPRENEURSHIP BAROMETER March 4 th 2015
Introduction Entrepreneurship has always been one of the strategic priorities of HEC Paris. Throughout the years it has taken various forms: innovative teaching methods (with emblematic programs such as HEC entrepreneurs and Challenge+), research, support and coaching, awareness campaigns on campus, facilities such as the HEC Incubator, etc. What conclusions can be drawn from these actions? Can the general enthusiasm among young French people for entrepreneurship also be observed among our students? How have HEC entrepreneurs fared? What are their motivations to start a business? The first HEC Entrepreneurship Barometer answers these questions. To devise this barometer we have interviewed a representative panel of 8,500 alumni from the various HEC programs, including young graduates as well as seasoned professionals who left the school 10 years ago. Methodology The survey was conducted on 5 Classes 2004, 2011, 2012, 2013 and 2014 for a total of 8,500 people. The interviewees were graduates from all the HEC programs: Grande Ecole Master in Management, MSc Programs, MBA and Executive MBA. The response rate was close to 30%. The survey was carried out online and over the phone by HEC Junior Enterprise. 1,156 forms were filled out by email from November 18 th to December 8 th 2014. 1,372 forms were filled out over the phone between December 4 th 2014 and January 20 th 2015. Full methodology available upon request. Press Contact Stéphanie Lorette, +33 1 39 67 94 39, lorette@hec.fr
Main Findings The results are very encouraging and reveal three main trends: 1. The desire to start a business is rapidly growing. Today 1 out of 4 HEC graduates 1 is an entrepreneur, a proportion that has been increasing constantly and rapidly over the last 10 years. Back then only 10% of students opted for entrepreneurship. 2. HEC entrepreneurs are value creators in France. 84% of businesses are founded in France, creating jobs and generating growth. 3. The businesses started by HEC graduates from very diverse sectors have sound, sustainable business models, often benefiting from the support of Business Angels or venture capitalists. Entrepreneurship is booming Among the youngest graduates ( pre-experience Master programs), the survey reveals wide-ranging interest in entrepreneurship, with almost 20% of entrepreneurs among graduates of the last Class; three times more than the national average. This growing enthusiasm has been even more tangible with each year: in 2004 there were only 2% of entrepreneurs. Stimulated by the diverse activities offered on campus (educational programs, entrepreneur talks, Creativity Talks, business incubator, etc.), students now feel freer to express their creativity and no longer hesitate to bring their projects to fruition, whether as students or as young graduates. But the appeal of entrepreneurship is not restricted to youth! The percentage of entrepreneurs is particularly high (44%) amongst participants in the Executive MBA program, designed for senior executives wishing to give a new direction to their career. The professional experience of these students, combined with the academic input of the program, brings out the entrepreneurial potential of these executives. The major drivers of entrepreneurship are a desire for independence, and innovation. The desire to be one s own boss is the main motive, but in much lower proportions than the national average (47% vs. 77% according to the 2013 Envie d Entreprendre Barometer). The desire to innovate and create new business models is the other main factor in starting a business, for one out of four entrepreneurs. Conversely, and against expectations, the lack of attractiveness of large corporations is mentioned by only 15% of the interviewees. 1 Graduates from the Grande Ecole, Specialized Masters, MSc, MBA and Executive MBA programs
HEC entrepreneurs are value creators The study shows no increase in the number of business startups abroad, with 84% of businesses incorporated in France. The percentage of companies started up abroad has risen for the MBA program, which has 85% of foreign students. Close to one-third of MBA alumni start up a business abroad. This figure is partly ascribable to the fact that some of these students go back to their country of origin after graduating. Another noteworthy finding is that entrepreneurs are less and less isolated. Only 36% of HEC graduates founded their business on their own, vs. 71% nationwide (ministerial data 2013) and the percentage has fallen steadily year after year. This is explained in particular by the desire of entrepreneurs to work in teams, extending the relationships they have formed on campus, but also by the sharp increase in projects requiring dual skills (e.g. engineer/manager); such projects are encouraged at HEC by the system of dual degrees and by the extensive partnerships developed, particularly in Saclay. More than ever before, entrepreneurship is a collective experience! Businesses started up by HEC graduates are of benefit to a vast array of sectors: business services, digital economy, sports, tourism, civil engineering or agriculture. This diversity is fostered by the numerous multidisciplinary partnerships developed between HEC and such institutions as the Ecole Polytechnique, AgroParisTech, IOGS, Mines ParisTech, Sup Aéro, etc. Robust businesses The companies started up display great growth potential. Indeed, about a quarter of HEC entrepreneurs use fundraising, more than twice the national ratio (2013 Envie d Entreprendre Barometer). This fundraising is done very early in the life of their project. This reflects not only the high expectations of entrepreneurs but also the trust of investors in projects perceived as serious and attractive. The new businesses are sustainable. After three years of activity, the survival rate of these businesses is 80% vs. 66% nationwide (data from the 2013 Observatoire APCE). Finally, each Class since 2011 has had a constant share of 30% of serial entrepreneurs among those who started a business. This figure illustrates the dynamism and thirst for innovation of these entrepreneurs. The growing enthusiasm for entrepreneurship is tangible at HEC. Also good news is the solidarity of HEC entrepreneurs: 81% of them stated that they are willing to support projects by current students, whether in the form of mentoring, investment or networking. Get the complete Barometer on https://infogr.am/barometre_de_lentrepreneuriat_hec5
HEC Entrepreneurship Barometer Current entrepreneurship rate * Question: Have you already founded a business? Startup rate in the year following graduation. * last Class for which we have complete data (Class of 2013) All graduates Executive MBA MBA Pre experience programs (Grande Ecole, MS, MSc) Growth in the entrepreneurship rate (all alumni)
Class of 2014: complete data unavailable (answers for 6 months only) Growth in the entrepreneurship rate among HEC preexperience graduates (MS, MSc, Grande Ecole) 19% of 2013 HEC pre-experience graduates have already started their own business. This is three times higher than the national average. All graduates with at least 5 years of higher education (Source: APEC 2014)
Reasons for starting a business Lack of attractiveness of large corporations Taking advantage of the digital revolution Desire to innovate and create new business models Desire to be one s own boss HEC Entrepreneurs 2013 Envie d Entreprendre Barometer
Structure of the new businesses The desire for independence and innovation are the two main drivers of entrepreneurship. No rejection of large corporations. The independence item is however much lower than the national average. Only 37% of HEC graduates create their business on their own, vs. 69% nationwide. National average (APEC 2014) HEC Entrepreneurs With several partners With one partner Alone Location of the businesses started up by HEC entrepreneurs
84% of businesses have been created in France Young entrepreneurs with 5 years of higher education (source: APEC 2014) All curricula MBA France Abroad Sectors of new businesses (Class of 2013) Construction, Transport and Industry Retail Tourism, Luxury, Wine and Food products Sports, Events, Media and Advertising Telecommunication & Internet Economy Business services, Legal, Accounting and Consulting
Use of fundraising (Capital Investment or Business Angels) 23% of HEC entrepreneurs use fundraising, which is more than twice the rate of the national sample (2013 Envie d Entreprendre Barometer). HEC Graduates National average (2013 Envie d Entreprendre Barometer)
Survival rate in 2014 After 3 years After 5 years After 10 years HEC graduates National average (Observatoire APCE 2013) Percentage of entrepreneurs who have founded more than one company
Close to one out of three entrepreneurs is a serial entrepreneur
A few success stories among HEC graduates Ning Li & Julien Callède (H06) - Made.com Interior Design Ning Li and Julien Callède founded Made.com alongside Chloé Macintosh & Brent Hoberman (founder of Lastminute.com). Their company is number one in Europe on the online furniture market, and their business was showcased by the City of London in a great campaign about entrepreneurs. Giles Christopher Pauline Laigneau (H12) - Gemmyo Online Jewelry Pauline started up Gemmyo, an online jewelry store. Her company has already created 15 direct jobs and a range of 15,000 jewels, and should close 2014 with a turnover of 3 million euros. Photo La Tribune François Pelen (EMBA 11), Raphael Schnitzer (MS 07) and Patrice Pouts (EMBA 11) - Groupe Point Vision (via HEC Incubator) Optical After their training and a spell at the HEC business incubator, the Point Vision team is revolutionizing the way we go to the ophthalmologist. What s new? They rethought the whole value chain and opened vision centers able to receive customers in less than 48 hours. The seven centers that have opened since 2012 receive more than 200 patients each day and the company is growing very rapidly: about twenty more centers will open before the end of the year. Florence Pellegrini and Kevin Berkane (H13) - Kialatok - Catering Kialatok offers world cuisine workshops run by talented cooks from various countries: the selected cooks are in job integration programs and train employees of large groups. Kialatok is one of the projects supported by the HEC Social Incubator opened in La Courneuve with Projet pour l Emplo in 2014 (Stand-up 93).
Chloé Beron, (MS 11), founder of the International Center of Arts in Motion of Aix en Provence (France) Thierry Bonte, (EMBA 11), president of Factory Systèmes (France) - IT Thomas Held, (H12) and Hugo Camille Owen (H14), founders of Eforsports - Sports Clément Le Fournis and Paolin Pascot (MS 13), founders of Agriconomie - Agriculture Olivier Nicolas (MS 11), founder of Tropicachat.nc in New Caledonia - Retail Rudy Guénaire and Graffi Rathamohan (H11), founders of the PNY Paris New York restaurants - Catering Rami Tazari, (MBA 04), founder of Basatin Landscaping in Abu Dhabi - Landscaping Céline Lazorthes (MS 08), Founder of Leetchi Services Guillaume Gibault (H09), Founder of Slip Français - Fashion