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The 23rd annual Global Entrepreneurship Monitor 2021/2022 report measures entrepreneurial activity across 47 high, medium and low-income economies Data is gathered via a survey of at least 2,000 respondents in each country Mark Hart, professor of small business and entrepreneurship at Aston Business School, leads the GEM UK team. The 23rd annual Global Entrepreneurship Monitor 2021/2022 report, unveiled at the Dubai Expo, measures entrepreneurial activity across 47 high, medium and low-income economies. Mark Hart, professor of small business and entrepreneurship at Aston Business School, leads the GEM UK team. Data is gathered via a survey of at least 2,000 respondents in each country who answer questions on their entrepreneurial activity, attitudes to enterprise and view of their local entrepreneurial eco-system. The survey found that: 51% believed they had the skills and knowledge to start their own business 50% knew someone who has started a new business 61% of respondents believed there were good opportunities to start a business in their area, but 52% of these people cited fear of failure as a reason for not starting a new business in the next three years. The UK was ranked 40th in ‘entrepreneurial intentions’, 32nd in ‘personally having the skills and knowledge’ and 7th in ‘fear of failure’. Other survey responses in the UK found that, of those respondents who were actively involved in starting or running a new business, 30% believed the COVID-19 pandemic had led to a decrease in household income. But while more than a third (36%) of respondents thought starting a business was more difficult than a year ago, 63% were using technology to sell more products and services and 57% were pursuing new opportunities as a result of the pandemic – which was the joint 6th-highest of the 47 countries. Social responsibility also featured fairly high in entrepreneurs’ minds with 53% starting a business ‘to make a difference’, but was third to building ‘great wealth’ and ‘to earn a living’. Dr Sreevas Sahasranamam, senior lecturer in entrepreneurship and innovation at the Hunter Centre for Entrepreneurship, and one of eight authors of the GEM Global Report, said: “It is heartening to see that more than 50% of entrepreneurs in the UK are pursuing new opportunities due to the pandemic and more than 60% are using more digital technologies to sell products and services, indicating flexibility and adaptability. “On Entrepreneurial Framework Conditions, however, the UK is performing poorly compared to other developed economies on Government Entrepreneurial Programs and Entrepreneurial Education in School. “Amongst the 17 high-income countries (GDP per capita greater than $40,000) in our sample, UK has an average score (5.1) for its Entrepreneurial Finance conditions, while its score for Ease of Access to Entrepreneurial Finance (4.4) is the lowest amongst this group. Thus, finance remains a key challenge to entrepreneurial activity in the UK. “Entrepreneurship centres like Strathclyde’s Hunter Centre for Entrepreneurship can help in this regard by offering entrepreneurship education and support for students, staff start-ups and growth-oriented ventures, through initiatives like Strathclyde Inspire and our Growth Advantage Programme.” Mark Hart, professor of small business and entrepreneurship at Aston Business School and leader of the GEM UK team said: “Entrepreneurial attitudes and behaviours will be critical for the recovery after the pandemic as they were after the Great Financial Crisis over a decade ago. “The Global Entrepreneurship Monitor (GEM) project provides policymakers in the UK with unique data to understand the ability of local and regional economies to develop financial independence and create future growth. “The recent UK Government White Paper on Levelling Up was somewhat disappointing in that respect as it ignored this key dimension of economic development across the regions and home nations of the UK”. Globally, the GEM report found that in 15 out of these 47 economies, more than half of those starting or running a new business agreed that the pandemic had led to new business opportunities. In 2020, this had been the case for just nine out of 46 economies. In 2021, more than 50% of entrepreneurs agreed that starting a business had become more difficult in 18 of 47 economies. In 2020, almost twice as many (33 out of 46 economies) had 50% or more of their would-be entrepreneurs agreeing that this was the case. The Dominican Republic had the highest levels of early-stage entrepreneurial activity while Poland had the lowest. The Scotland GEM Report 2020 published in September last year by Strathclyde researchers estimated that 7.3% of the Scottish population – 247,000 adults – were actively engaged in setting up a business or already running an enterprise established in the last three-and-a-half years, including 60,000 young people in Scotland, or 13% of 18-24 year-olds.
Questions to ask the interviewer in a job interview: Tips for newcomers
As a newcomer, landing your first job in Canada requires a lot of preparation and patience. Before you start applying to job openings, you’ll need to invest time in crafting a Canadian-style resume, perfecting your elevator pitch, and building your professional network. Even with all this work, it can sometimes take newcomers several months to get their first job interview in Canada. However, when that inevitable call does come, you want to be thoroughly prepared to ace your job interview. Typically, this means researching the company, practising your responses in advance, and having a ready list of questions to ask the interviewer to position yourself as a suitable candidate for the job. Why is it important to ask questions at the end of a job interview? At the end of job interviews in Canada, an interviewer usually asks if you have any questions for them. Many newcomers hesitate when it comes to asking the recruiter or hiring manager questions, or worry that it may make them seem unprepared or overenthusiastic. On the contrary, it’s completely acceptable—and even expected—that you’ll have questions for the recruiter. In Canada, interviewers will assess you not only based on how well you answer the interviewer's questions, but also on the questions you ask them. Having questions for the interviewer shows them you’re interested in the role. Well-researched, intelligent questions demonstrate that you’ve done your research about the organization and want to learn more about working there. A job interview isn’t meant to be one-sided. As a newcomer, asking questions is also an opportunity for you to gather information that’ll help you assess whether an organization, team, or the role are a good fit for you. Top questions to ask the interviewer in a job interview It’s always good to have a prepared list of questions to ask at the end of an interview. One rule of thumb to keep in mind while preparing for interviews is to steer clear of obvious questions that can easily be answered with a little bit of online research. In this section, we’ll share some indicative questions you can use or build upon, based on the role you’re applying for and your own interview discussions. Questions to ask about the job What will the person in this position be responsible for? This is a good question to ask if the job description doesn’t have a lot of information about the role and if the job responsibilities haven’t been discussed during the interview. Usually, you’ll have some information about what the job will entail to begin with, so phrase the question in a way that shows what you know. For instance, if you already know that the position is for a social media manager, you might want to ask what social media platforms you’ll be responsible for, or whether you’ll also be required to create video content. What are the qualities you’re looking for in a candidate? While a job description typically mentions some of the skills and qualities a role requires, this question allows you to assess how well your expertise and personality match what the hiring manager is looking for. It will also give you an idea of the qualities or soft skills valued by the organization, such as teamwork or being self-driven. This could be a good opportunity to showcase these same qualities through a well-chosen example. If you’re looking for your first job in Canada, this question can also give you insight into the qualities Canadian employers in a particular industry typically seek in applicants. What would my typical day in this role look like? This question serves a dual purpose. One, it subtly positions you as an insider and shows that you’re truly interested in the position and are already thinking about what working there will be like. Secondly, the response will give you additional information about the job, the stakeholders you’ll engage with, and the things you’ll be responsible for on a daily basis. What are the biggest challenges someone in this position will face? Questions like these are a great way to learn more about the role, potential roadblocks, or dealbreakers. Depending on the interviewer’s response, you may also get an opportunity to elaborate on ways in which you’ve dealt with that particular challenge in your prior roles, helping you to stand out as the ideal candidate. For instance, if managing tight timelines is a challenge you’ll be expected to deal with, sharing how you’ve used your organizational or delegation skills to deliver quality output ahead of time could give you an advantage. What will my immediate priorities or projects be in this role? In addition to giving you more insight into the work you’ll do, this question demonstrates your eagerness to get started. Even more, it allows the interviewer to imagine you in the role and think of you as part of the team. If, during your research, you uncover some exciting new projects the company is planning, such as a product launch, this can also be a good time to ask if you’ll be involved in those or express your interest in doing so. Questions to ask about the organization Can you tell me about the company’s growth plans over the next few years? Showing you’re interested in the organization’s future gives the interviewer confidence that you intend to stick around and aren’t looking at this job as a short-term arrangement. If you’ve read about an upcoming partnership the company is exploring or about the industry being impacted by economic changes, don’t forget to mention it. The recruiter’s response will also give you some idea about where the business is headed, possible team expansions, or new projects in the future. How does this team support the company’s overall objectives? If the job description doesn’t provide a lot of information, this question is a good way to learn both about the organization’s goals and your future team’s responsibilities. If the answer is obvious, like if you’re joining the accounting team, rephrase the question and ask about the team’s key performance indicators instead. This will also give you some insight on the metrics on which your individual performance will be evaluated in the role. How would you describe the company’s values? A company’s values are essentially the traits or beliefs that guide the organization and its people towards their ultimate goal. If you can relate to these values, you’ll be more likely to fit in and work well with others on your team. For instance, if humility is a core company value, it’ll be best not to boast about your achievements in front of your team. Refrain from asking this question if the company values are openly stated on the company website. What do you like the most about working with [company name]? Phrasing some of your questions in a way that asks for the interviewer’s opinion makes them feel that you value their personal insight. You’ll also be more likely to get more relatable answers that may not have been included in the job description. An alternative question along similar lines could be, “What do you find most challenging about working with [company name]?” What is the company culture like? OR How would you describe the company’s management/leadership style? When looking for your first job in Canada, it can be easy to focus on immediate priorities, such as salary, working hours, and travel time. However, it’s also important to keep in mind things that keep you motivated over the long run, such as a company’s culture and leadership style. Asking about these will give you a sense of your future work environment and help you adapt to the culture within your team. Questions to ask about growth and team What opportunities does the company offer for professional development? This question can help you assess if and how the company invests in the success of its people. As a newcomer, access to professional development resources, whether it’s a mentor, personalized training, or online courses, can help you bridge skill gaps, expand your areas of expertise, or prepare for the next step in your career path. Be careful how you phrase this question—it shouldn’t seem like you’re only interested in your own development and not in the position or company! What metrics, goals, or KPIs will be used to evaluate my performance? For most Canadian companies, success needs to be measurable and quantifiable. Asking how your success will be measured shows the interviewer that you’re serious and results-oriented. It also gives you insights about what your performance focus will be. For instance, if you’ll be assessed based on the number of new business prospects you bring in, you may have follow up questions about the average value per prospect. You may also be able to share some of your business development achievements from previous roles. What does the career path look like for someone in this position? When you interview with a company, you’ll likely do some research beforehand to get a glimpse into what your future in the company could be like. For instance, you may look up the interviewer or other team members on LinkedIn and track their career growth. In case this information is unclear or hard to find, it’s also perfectly acceptable to ask the interviewer about your potential career path in the organization. Try not to ask probing questions about lateral growth opportunities or the possibility of moving to another department, as it could lead them to question your interest in the role you’re actually interviewing for. Other questions for the interviewer during a job interview What are the next steps in the hiring process? The hiring process in Canada often involves multiple rounds of interviews to assess if you’re a technical and cultural fit. Once all your other questions are answered, ask what the next round will look like. If possible, get the names and designations of people you’ll meet next so you can research them in advance. If the next step is an assignment or test, ask about timelines so you can plan your week accordingly. When can I expect to hear from you on the next steps/decision? While asking whether you got the job is a big no-no, it’s perfectly okay to ask when you can expect to hear about the outcome of the interview. First, this will show the interviewer that you understand that the decision process takes time, but also that you’re excited to know if you’ve made it to the next step. Second, you may be able to get a subtle hint about how the interview went. If the interviewer seems eager to connect with you again, you likely have a good chance of being selected for the next round. However, these hints aren’t foolproof, so until you hear from the recruiter with a definite yes or no, don’t lose hope and keep up with your preparation. Do you have any concerns or final questions for me? Asking the interviewer if they have any concerns about your candidature gives you a final chance to address points that may negatively impact your chances. If the interviewer brings up a weak spot in your application, use this opportunity to give specific examples about your experience or transferable skills that’ll help you succeed in the role. Additional questions based on conversations during the interview While the list of questions we’ve shared is a good starting point, it’s also very important to listen to what the interviewer says during the interview and ask questions based on that. There’s nothing wrong with asking an occasional follow up question during the conversation to gather more information, as long as you’re not interrupting them or using up too much of the interview time. However, it’s usually best to save your questions for the end. It’s acceptable to take notes during an interview (although you’ll still want to prioritise making eye contact), and this can help you keep track of questions you may want to ask later on. Asking relevant questions based on your conversation is a great way to showcase that you’re an active listener, can think on your feet, and grasp key points on the fly. For instance, if the interviewer indicated that they’ve tried something in the past and it didn’t work, you may want to ask why they think it didn’t succeed or if they’re considering alternative approaches. These questions give you an opportunity to demonstrate what you already know about the company, the business environment, or the latest tools and technology. If you have experience with something similar, you may also want to talk about how you overcame challenges and solved the problem. A job interview isn’t just an opportunity for a potential employer to assess whether your skills are in line with what they are looking for. It’s also a chance for you to learn more about the company and decide whether it is the right fit for you. Towards the end of the interview, most hiring managers will ask if you have any questions for them. Going in prepared with intelligent questions is a great way to stand out as an ideal candidate and will help you land your first job in Canada. Original article located here, published by Arrive. About Arrive Arrive is powered by RBC Ventures Inc, a subsidiary of Royal Bank of Canada. In collaboration with RBC, Arrive is dedicated to helping newcomers achieve their life, career, and financial goals in Canada. An important part of establishing your financial life in Canada is finding the right partner to invest in your financial success. RBC is the largest bank in Canada* and here to be your partner in all of your financial needs. RBC supports Arrive, and with a 150-year commitment to newcomer success in Canada, RBC goes the extra mile in support and funding to ensure that the Arrive newcomer platform is FREE to all. * Based on market capitalization
Tune In and Learn from our Experts - The Science of Decision Making
Did you know the average adult makes more than 35,000 decisions each day? The Science of Decision Making is the most recent episode available on The Goizueta Effect podcast. Emory University's Goizueta Business School Professor Ryan Hamilton shares how a better understanding of the human mind can help you make the best decisions in your own life – and position your products, services, and teams for growth. On the podcast you’ll find out more about: Grounding Tenets: The 4R’s of Decision Making How Cognitive Resources Impact the Decision-Making Process The Mental Load of COVID Importance of Reference Points for Businesses Halo Effects: Impact on Perceived Prices and Satisfaction Levels Impact on Satisfaction Levels Impact on Individual Perception Does Hamilton’s Research Influence His Behavior? The link to the podcast is attached below and if you are a reporter interested in learning more about Ryan Hamilton’s research – we’re here to help. Ryan Hamilton, associate professor of marketing at Emory’s Goizueta Business School. He is available to speak with media regarding brands and brand reputation – simply click on his icon to arrange an interview.
Ask an Expert - Are American Fan-Based Businesses at Risk for Decreased Revenue?
Modern fandom, according to Mike Lewis, is about having a passion for something—a sports team, entertainer, politician, fashion brand, a university—something. Lewis, professor of marketing and faculty director, Emory Marketing and Analytics Center (EmoryMAC) and host of the podcast, Fanalytics, considers fandom important because what people are fans of defines a modern culture. We can laugh at the sports fan with the painted face and the open shirt and the spikes on the sleeves, but the reality is, the traits that drive that level of enthusiasm and commitment are the traits that change the world outside of the arena. Mike Lewis, professor of marketing and director of EmoryMAC To better understand modern fandom and its effect on culture, Lewis, along with Yanwen Wang, Associate Professor of Marketing and Behavioral Science, and Canada Research Chair in Marketing Analytics, University of British Columbia, created EmoryMAC’s “Fandom Analytics Initiative.” The Fandom Analytics Initiative’s first report, Next Generation Fandom Survey, Generation Z: The Lost Generation of Male Sports Fans, published in September 2021, examines the results of a national survey the initiative commissioned. Nearly 1,400 people across four demographic groups—Generation Z, Millennials, Generation X and Baby Boomers—participated in the survey. Is Gen Z the Lost Generation of Male Sports Fans? The results reveal a somewhat troubling trend: Generation Z males (those born between 1990 and 2010) “seem to be increasingly indifferent and negative to traditional sports,” Lewis and Wang write in their report. “Generation Z’s relative lack of passion for sports and other categories is troubling for fandom-based businesses and a curiosity for those interested in the state of American society.” While only 23 percent of Generation Z defined themselves as “avid sports fans,” 42 percent of Millennials did, along with 33 percent of Gen Xers and 31 percent of Baby Boomers. Perhaps even more revealing is the percentage of respondents who considered themselves “anti-sports fans”—a startling 27 percent of Generation Z tagged themselves as “anti-sports” compared to 7 percent of Millennials, 5 percent of Gen X, and 6 percent of Baby Boomers. “That was unexpected,” says Lewis, who thought Generation Z would line up similar to Millennials, given that both groups are digital natives. “I’m still more and more surprised at how different Generation Z is than Millennials and, frankly, everyone else.” When Lewis and Wang took a look at the differences between male and female Generation Zers, things got even more interesting. In traditional sports categories (football, basketball, hockey, baseball, soccer), more Generation Z females defined themselves as “avid sports fans” than did their male counterparts. When it came to football, 20 percent of both Generation Z males and females described themselves as avid fans (the lowest percentage of all the demographic groups). But in every other traditional sport, Generation Z “avid sports fan” females outnumbered males by a discernable margin. Only when it came to eSports did Generation Z males outnumber Generation Z females. “I think there’s a very deep issue going on,” says Lewis. “Something fundamental has shifted.” The survey included questions about fandom-related psychological traits, specifically, community belonging and self-identity. On both, Generation Z males scored lower than Millennials. “The findings related to sports are particularly germane from a cultural perspective,” states the report. “Part of the lack of Generation Z fandom is due to younger individuals having less intense feelings of group belonging in general.” Beyond the Playing Field, How Does Loyalty Shine? While the report doesn’t take a deep dive into the psychology behind Generation Z’s fandom differences, it does note that Generation Z came of age during a time of “ubiquitous social media, dramatic demographic changes, and a hyper-partisan political environment,” they write. “These dramatic changes may fundamentally alter how members of Generation Z engage with cultural industries.” Overall, Millennials were shown to have the “highest preference across all sports,” according to the report. Millennials are not only willing to watch games, but they also enthusiastically wear team gear. Baby Boomers are up for watching games but are less interested in following teams on social media. As it turns out, note the authors, Generation Z isn’t totally disconnected. Across the entertainment categories, Generation Z is similar to other generations. “Sports fandom is the outlier,” they state. In addition to sports, Lewis and Wang looked at six other fandom segments: new and now celebrities, social justice culture, athletic excellence, old school personalities, brand fanatics, and Trump Fans. Lewis points to the fact that whatever one thinks of Donald Trump, he does generate fandom. “That passion for whatever it is—sports, politics, movies, music—that’s really what drives the world,” says Lewis. Because of its importance, fandom is, notes the study, “increasingly actively managed,” whether to garner viewers, money, or votes. Recent trends such as streaming across devices, the ubiquity of social media, an increase in demographic diversity (not to mention a once-in-a-lifetime pandemic), have affected mainstream sports and entertainment. As a result, Lewis believes it’s important to study how fans are changing across generations. Leagues, teams, networks, studios, celebrities, and others need to understand why there is less engagement to formulate strategies for acquiring the next generation of fans. Authors Mike Lewis and Yanwen Wang As sports leagues and teams see more growth opportunities with women and increasingly diverse fan bases, Lewis wonders if some sports teams may alienate their current fan bases by marketing to non-traditional groups. “If you’re a league or a team, you’ve got a real dilemma at this point,” he explains. “If the NFL wants positive press, it has to market to the non-traditional fan segments. If they do that, are the traditional fan segments going to be less interested? Perhaps.” EmoryMAC’s research on fandom in the modern age is ongoing. A study into how eSports’ fandom differs from traditional sports fandom is also in process—as is research on how younger demographic groups see colleges and universities as institutions worthy of fandom. EmoryMAC will continue to make data and insights available on its fandom analytics website. “Looking at the fandom and passion of young groups now will tell you a lot about what the world will look like in 20 years,” says Lewis. I suspect that the era of sports being a mass marketing product and also a cultural unifier is probably going to end. Mike Lewis While that strikes Lewis as sad, he and EmoryMAC are merely following the data. “It may be the reality of where this is going,” he adds. If you're a reporter looking to know more - then let us help. Professor Michael Lewis is an Associate Professor of Marketing at Emory University’s Goizueta Business School. In addition to exploring trends in the overall marketing landscape, Lewis is an expert in sports analytics and marketing. He is available for interview - simply click on his icon to arrange a discussion today.
Aston University encourages SMEs to sign up to Innovation Workshops to support business growth
SMEs with a registered or trading address in Birmingham, Solihull, Redditch, Bromsgrove or the Wyre Forest are invited to attend The full series consists of three workshops hosted by academics from Aston Business School and Birmingham City Business School The workshops are part of the Innovation Vouchers scheme to help drive innovation and business growth SMEs with a registered or trading address in Birmingham, Solihull, Redditch, Bromsgrove, or the Wyre Forest have been invited to attend Aston Business School’s Innovation Workshops. The free1 workshops are part of the Innovation Vouchers project, which is part funded by the European Regional Development Fund. The full series consists of three workshops hosted by academics from Aston Business School and Birmingham City Business School on 2, 9 and 23 February 2022 running from 9.30 am to 5.00 pm at The Eastside Rooms in central Birmingham. The academics include Innovation Vouchers project director Professor Nick Theodorakopoulos and head of Aston Business School Professor Pawan Budhwar. The workshops are on three key areas: 2 February 2022: Envisioning Growth through Innovation 9 February 2022: Leadership & Strategy for Innovation 23 February 2022: Marketing for Innovation Attendees who attend all workshop sessions will receive a ‘Managing Innovation in Business’ certificate from Aston Business School. Nick Theodorakopoulos, professor of entrepreneurship development and Innovation Vouchers project director at Aston Business School, said: “The Innovation Workshops support small-and-medium sized businesses to build their capacity to innovate and grow. “Independent evaluations from the previous project phases have showed that workshops have a positive impact on attendees, resulting in substantial increases in gross value added and new job creation. “The staff who deliver the workshops are experts in their field with excellent industry experience. I would encourage businesses owners to attend the Innovation Workshops and grow their business.” Tickets for the Innovation Workshops are available HERE. Notes to Editors 1The workshops are free for eligible businesses. However, de minimis rules apply. The support we plan to provide through the workshops will comply with the State Aid rules using the de minimis exemption (in accordance with Commission Regulation (EU) No 1407/2013, OJ L 352/1). Under this exemption a single undertaking may receive up to the limit of €200,000 of De Minimis aid from the Member State within which it does business and which provides the aid over any period of three fiscal years. To attend the workshops, you will be asked to complete a Statement of Previous Aid received under the De Minimis exemption and arrange for a director of your business to sign it. Using this information we will assess your eligibility to receive assistance. About Innovation Vouchers European Regional Development Fund The project is receiving up to £803,273 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry of Housing, Communities and Local Government (and in London the intermediate body Greater London Authority) is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding Workshop Times and Dates All Innovation Workshops start at 9.30am and end at 5pm.
Aston University opens applications for Midlands’ Pitch Up investment competition
The Minerva Birmingham Pitch Up Competition is aimed at small business leaders looking for support with gaining investment Ambitious business leaders can improve their ability to win investment while boosting their profile The final will take place at Venturefest on 24 March 2022 at Eastside Rooms. Applications to Minerva Birmingham’s Pitch Up 2022 competition have opened. Formerly known as ‘Pitchfest WM’ and now in its 7th year, participating businesses have the chance to pitch head-to-head to a variety of investors to win a cash prize, and the ultimate accolade of Pitch Up Champion. Pitch Up is a collaboration, co-delivered by the Aston Centre for Growth, University of Birmingham Enterprise, and Minerva Business Angels, part of the University of Warwick Science Park Ltd. The competition provides the opportunity for ambitious business leaders to improve their ability to win investment while simultaneously boosting their business profile. Interested business leaders can apply here, applications close on 28th February. Shortlisted applicants will be supported through a workshop to refine their pitch deck, sharpen their pitching skills and receive valuable feedback in order to improve. The first workshop will take place on 20 January 2022. A select number of successful applicants will then advance to the next stage of the competition and have the opportunity pitch to an investor-led panel to gain more practice and receive more feedback. The best performing businesses will then be selected to pitch at the prestigious Pitch Up Final. This will take place as part of Venturefest WM on 24 March 2022 at Eastside Rooms, Birmingham. Venturefest attracts some 300 delegates including investors, entrepreneurs and innovators. The overall winner will be decided by audience vote and crowned Pitch Up Champion 2022, they will receive a cash prize and the option of additional support from Minerva Birmingham. Last year’s winner, Mark Platt Founder and CTO of Figura Analytics, said: “I was really amazed to win last year’s competition and delighted at the new connections and networks I made as part of the process. “The support received through the competition was fantastic; each workshop I attended allowed me to meet new people, learn new skills and left me energised and eager for more. Our winning pitch was definitely the result of some really insightful advice and feedback from the team and panel members.” The event has put more than 125 entrepreneurs directly in front of investors and helped bring in excess of £40,000,000 of investment to the region's small businesses to date. Paula Whitehouse, director of Aston Centre for Growth, said: “We are delighted to continue this collaboration, Minerva Birmingham Pitch Up exists to boost access to finance for the region’s most exciting and innovative young businesses. “The competition continues to play a crucial role in unlocking opportunities and investment for the future of high growth companies within the region.” Alex Toft, head of Minerva Business Angels, part of the University of Warwick Science Park Ltd. said: “It’s great to be part of such a collaborative relationship building not only support for our entrepreneurs but helping to build that support structure of finance and experience provided by investors. “This is a great opportunity for those earlier in their development cycle who would otherwise struggle to get noticed. We also continue to call on those who have never considered angel investing to join to reach out to us to find out more.” David Coleman, CEO of University of Birmingham Enterprise said: “Within the Midlands, there is a clear disparity between the large proportion of the UK's high-growth companies that are based here, and the investment secured. “That's why collaborative programmes like Pitch Up, which engage a diverse range of investors, are so important to increasing the likelihood of companies securing the funding they need.” Find out more about Pitch Up, by contacting centreforgrowth@aston.ac.uk, visiting Minerva Birmingham Pitch Up or apply now here.
Brexit caused a large negative effect on UK trade pre-pandemic - new Aston University research
Professor Jun Du and Dr Oleksandr Shepotylo analysed the causal effect of Brexit on the UK’s services trade between 2016 and 2019 They found the UK experienced an average shortfall of £18.5 billion worth of services exports for each of those years Transport, Travel, Insurance and Telecom sectors experienced significant decline post-2016 No significant decline was found in other services including intellectual property, construction and financial. New research from economics experts at Aston University has found Brexit has caused a largely negative effect on UK services trade since the EU referendum. Professor Jun Du and Dr Oleksandr Shepotylo, from Aston Business School, analysed the causal effect of the Brexit referendum on UK’s services trade over the period between 2016 and 2019, in comparison to other major services exporters. They found the uncertainty associated with the UK-EU trade negotiations following the referendum caused harms to the UK services economy as a whole, reducing firms’ exports of services. This damages the competitiveness of services sectors which make up a lion’s share of the UK economy in terms of gross output, value-added and jobs. Professor Du and Dr Shepotylo used a Synthetic Difference in Differences (SDID) estimator to construct a counterfactual of the UK, had it not voted leave in 2016, to compare its services exports performance. This was done by comparing the actual performance of the UK with the modelled performance of a country that looks much like the UK, but did not vote to leave the European Union. They found Brexit resulted in the UK experiencing an average shortfall of £18.5 billion worth of services exports every year between 2016 and 2019 relative to what it would have been, had the UK remained in the EU. The impact varied considerably between different types of services. The UK’s exports in the category of transport, travel, insurance and telecom services saw a statistically significant decline following the referendum. No significant decline was found in business, intellectual property, construction, financial or personal, cultural and recreational services. In addition, Professor Du and Dr Shepotylo did not find evidence to suggest that UK businesses have redirected exports in services from the EU markets to those outside the EU, which is in contrast to exports in goods. The research suggested that Ireland has benefited significantly during this period, with growth in post-Brexit services exports up by £24 billion annually over 2016 to 2019 in the country compared to the counterfactual scenario if Brexit did not occur. This translates to 14.75% of Ireland’s 2019 total services exports, with growth clustered largely in the telecoms, business, intellectual property, and insurance sectors. Jun Du, professor of economics at Aston Business School, said: “Brexit marked a rupture in the highly integrated UK-EU services markets that had been developed during the UK’s membership of the single market. However, the UK’s strength in services was not reflected in the government’s ambitions for the sector in the EU-UK trade negotiations that followed the referendum. “There are other winners besides Ireland in some post-Brexit services areas. The Netherlands have increased considerably in ‘Business’ and ‘Intellectual Property’ exports. “Spain has seen growth in ‘Travel and transport’ services exports. Germany has gained in ‘Transport’, ‘Insurance’, ‘Telecom’ and ‘Intellectual Property’ services exports. While Ireland seems to have done exceptionally well in relation to the export of ‘Telecom’ services, a sharp contrast emerges to the lost exports not just from the UK, but also from the Netherlands, Switzerland and France.” Dr Oleksandr Shepotylo, a senior lecturer in economics, finance and entrepreneurship at Aston University, co-wrote the working paper and said: “UK services exports are 5.7% lower than they would be without Brexit. It reflects an overall decline of the UK as a place for doing business. “What economists tend to agree on is that the UK’s exit from the EU’s custom union and single market may have more significant impacts on services than goods, and more severe impact on post-Brexit regulated services than unregulated services. “It will take some time for the full impact of Brexit on UK services to emerge. Freedom of movement and data flow in some areas between the UK and EU could remain restricted. Stability, transparency and regulatory consistency in financial markets could be challenged. But new opportunities might surface. “Continued trade negotiations and dialogues regarding trade liberalisation are essential with the EU and large, fast-growing markets beyond Europe. Crucial to understanding these impacts will be reliable data and rigorous analysis. Our modelling of marked losers and winners in post-Brexit services trade provides new evidence for an open discussion of the post-Brexit trade in services.” You can read the full working paper HERE
Emory Experts - Post-Financial Crisis: How Well do Mutual Fund Stocks Fare?
Following the global financial crisis in 2008, the assets of passively managed mutual funds have ballooned, while the market share of actively managed funds has fallen dramatically. Addressing this topic, a new research has been coauthored by Jeffrey “Jeff” Busse, professor of finance, and Goizueta alumni Kiseo Chung 17PhD, assistant professor of finance, Texas Tech University and Badrinath Kottimukkalur 17PhD, assistant professor of finance, George Washington University. In their paper, the researchers explain the shift in assets from actively managed funds to passive funds, “Impediments to Active Stock Selection and the Growth in Passive Fund Management. In 1999, Busse and his coauthors explain, the net assets of passive funds were “less than an eighth the assets of active funds.” But by the end of 2019, “the market share of passive equity funds increased to more than 50 percent,” Busse, Chung, and Kottimukkalur note. Passive funds track indices such as the S&P 500, Dow Jones Industrial Average, NASDAQ Composite, and Wilshire 5000—all indices that have been difficult to beat over the last decade. According to the Wall Street Journal, from 2008 to 2018, more than 80 percent of actively managed funds in the U.S. underperformed the S&P Composite 1500. This is in large part, the trio notes in their paper, because the so-called “FAANG” stocks—Facebook, Apple, Amazon, Netflix, and Google—comprise such a large part of these indices. In fact, the top 10 stocks in the S&P 500 currently make up around 30 percent of its market cap. “The market caps of these companies are huge, and they’ve done exceptionally well since the financial crisis,” Busse explains. Hence, active fund managers and their teams of analysts have found it much more challenging to discover undervalued and overlooked stocks with positive alphas ─ the stocks that outperform an index. “As such, a general move toward passively managed funds is not so surprising,” the paper reveals. Finding Diamonds and Avoiding Duds Making it even more difficult to find diamonds in the rough is a lack of volatility in the stock market. Except for some isolated periods, including the month or so around the start of the pandemic in March 2020, the market hasn’t experienced much volatility since 2008. Without wide swings in prices, fund managers have less opportunity to buy low and sell high. Over the same time period, aggregate stock liquidity has also been high, which means less chance for fund managers to pick up winners at bargain prices. “When there’s money in the market—when there’s liquidity—it means there aren’t a lot of disagreements on prices,” explains Busse. “Liquidity is inversely related to mispricing,” the researchers explain in their paper. This combination of circumstances—the rise of the FAANG stocks, the lack of market volatility, and higher liquidity—is making it much more difficult for actively managed funds to find stocks that will help their funds beat the indices, and therefore, outperform the passive funds. As a result, justifying their management fees gets more complicated. According to Thomson Reuters Lipper, the average expense ratio (management fees divided by total investment in a fund) for actively managed funds is 1.4 percent compared to 0.6 percent for the average passive fund—nearly three times as much. While active fund managers have realized that these higher costs are no longer paying off and have moved to reduce them, actively managed funds continue to lose market share. Market Share Gain of Passively Managed Funds While the authors weren’t surprised by the growth of passively managed funds, they were surprised by how much they grew. From 1999 to 2019, the authors note, the number of actively managed funds grew by 11 percent, while the number of passively managed funds increased by 244 percent. “There haven’t been any papers that try to explain why passive funds have gained so much market share,” says Busse. He and his coauthors believe their research illustrates that it’s in large part because the market, post-financial crisis, is challenging for stock pickers. “As such, it has been difficult for actively-managed funds to recoup the costs associated with active management, and compared to earlier periods, passively managed funds are better positioned to gain market share,” they explain. “As the payoffs to active management decrease, it becomes more difficult to justify the costs of active management, and, thus, we expect funds to decrease these costs given their negative performance implications.” Busse doesn’t believe the current fund management environment will continue indefinitely. When the pandemic knocked the S&P 500 down 30 percent in March 2020, managers did gain opportunities to find positive alpha stocks—which they bought. “It’s just, on average, over the last 10 years, there haven’t been enough of those opportunities,” explains Busse. “It’s a matter of hanging in there and, in some sense, keeping your investors from fleeing to passive funds until the environment is a little bit better.” Jeffrey Busse is the Goizueta Foundation Term Professor of Finance where his research focuses on investments, with an emphasis on mutual funds. Jeff is available to speak with the media regarding this important topic – simply click on his icon now to arrange an interview today.
CAA Insurance Company is proud to announce the expansion of Canada’s first and only pay-as-you-go auto insurance payment program, CAA MyPace™, in Ontario. The program allows motorists to monitor how much they are driving and to pay for auto insurance based on that mileage. After three years where thousands of Ontario drivers have benefitted from CAA MyPace, CAA Insurance is now providing greater savings by expanding access to those who drive less than 12-thousand kilometres annually. Previously it was designed for those who drive less than 9-thousand kilometres. “Since the launch of the program back in 2018, CAA MyPace has been generating a great deal of interest in the market, and consumers are asking for it by name,” said Matthew Turack, president, CAA Insurance Company. “As many Ontarians continue to drive less than they did two years ago, we are excited to make this program available to even more Ontario drivers.” The uniqueness of CAA MyPace in the Ontario auto insurance market has resulted in considerable interest by drivers. The number of new CAA MyPace policies during the pandemic period of January - September 2021, increased by 418 per cent compared to the same pre-pandemic period of January - September 2019. The growth directly results from customers who made the switch to CAA MyPace and are seeing significant savings. On average, CAA’s pay-as-you-go policyholders save 50 per cent on their auto insurance costs compared to a traditional policy. An August 2021 survey of over 2,100 Ontarians, conducted by CAA Insurance, indicated that 64 per cent of respondents would consider a pay-as-you-go product now or at their time of renewal. “Expanding our lifestyle products and programs gives CAA Insurance the ability to be responsive to the needs of our customers and to ensure that we are there for them in every stage of life,” says Turack. New customers can enrol in the expanded CAA MyPace program starting November 15, 2021. Existing CAA MyPace customers will be automatically transitioned into the expanded program, with no additional costs at renewal, effective January 15, 2022.
Corporate Social Responsibility Builds Investor Trust
There’s little doubt that corporate social responsibility (CSR) is a good thing for businesses. Whether it’s taking positive action on society, communities, the climate, or the planet, strong corporate citizenship tends to play well with the public, the media, and consumers alike. And that can translate into wins in terms of brand equity and reputation. What is perhaps less clear are the concrete business returns that ethical business practices may or may not generate. Or, whether doing the right thing can create value for firms beyond image, brand, and customer or employee engagement. To shed light on this, Goizueta Assistant Professor of Accounting Suhas A. Sridharan, has taken a rather novel approach. Together with colleagues from the universities of LUISS Guido Carli, Nazarbayev University, and IDC Herzliya, Sridharan has published a new study using measures of disclosure credibility to understand whether CSR builds investor trust and drives tangible benefits for corporations. Corporate Social Responsibility Does Reap Rewards “Disclosure credulity refers to how much your investors trust the information your organization provides – how much faith they have in your company’s ability to accurately convey opportunities for growth, and perhaps more critically, to navigate risk and uncertainty,” says Sridharan. “Because CSR and responsible business practices have a role in addressing a range of risks–from climate change and environmental factors to socio-economic or political uncertainty and the impact on supply chains, talent and so on–we reasoned CSR can impact investor trust and disclosure credibility. And disclosure credibility, in turn, can impact investor decision-making and business outcomes.” To study disclosure credibility, and capture shifts in investor sentiment towards firms, Sridharan and her colleagues decided to use the link between share prices and company earnings announcements–the public statements on profitability that firms are obliged to make over different periods. “Earnings announcements are among the most salient and recurring areas of corporate disclosure, and managers and investors pay very close attention to them,” Sridharan says. “Because of the nature of the information they contain, they have a direct link to security price discovery – the price that firms and investors will agree to buy and sell shares in the company. Simply put, earnings announcements can be used to examine how much investors value a firm.” As reports, earnings announcements are also highly complex and typically time-consuming to process. Because of this, Sridharan and her colleagues opted to look at just how quickly or slowly investors were reading announcements and responding to them – and how quickly or slowly stock prices were adjusting to reflect earnings news within a five-day window after earnings announcements, as well as a longer period to allow for potential overreaction or error. More Disclosure Credibility Equals Faster Results Sridharan explains, “The intuition we brought to the study was that the more investors trust a firm’s disclosures, the more efficient or faster they will be to process its earnings report; in other words, the more they will be likely to take the report on face value and less inclined to dig into the finer minutiae or question its findings.” Adopting this approach, she and her colleagues then compared and contrasted investor response to earnings reports from different firms, with greater or less involvement in CSR activities. In total, they looked at a large-scale sample of more than 19,000 annual earnings announcements from just under 3,000 U.S. firms over a 25-year period, between 1992 and 2017. Using Morgan Stanley Capital International environmental, social, and governance ratings, they were also able to determine the degree of firm-level CSR across their dataset during this period. Crunching the numbers, Sridharan and fellow researchers were able to arrive at a concrete conclusion: CSR measurably increases investor trust and disclosure credibility. “When we estimated our regression models, we found clear evidence that corporate social responsibility does indeed contribute to the average speed of price discovery around earnings announcements; and it does so positively. Our results reveal that CSR increases the speed with which stock prices incorporate earnings news. Breaking it right down, we see that a one unit increase in CSR activities corresponds to 1.96 percent increase in the average timeliness or efficiency of reported earnings.” In other words, investors are reacting more quickly and favorably to performance reports made by organizations with more demonstrated social responsibility. “We know that these types of announcements are lengthy and dense; they take time to process,” Sridharan says. “So, the intuition here is that when your firm plants a flag on responsibility and accountability, investors are more likely to take your disclosures at face value – they’re more likely to trust what you’re saying.” Organizations would do well to take this finding on board, says Sridharan; especially in today’s climate of high volatility and uncertainty. Having investors on board is critical in weathering the bad times along with the good, she adds, and CSR can be a game-changing tool in building that necessary trust. The Wild West of the Regulatory Landscape Sridharan’s paper also informs the regulatory landscape around corporate responsibility which is still in its infancy and which she likens to something of a “Wild West.” “The U.S. Securities and Exchange Commission (SEC) and other regulators are increasingly focused on improving the functioning of capital markets and understanding the role of CSR,” she says. “The SEC has included an examination of climate and ESG-related risks among its 2021 examination priorities which also underscores a growing investor interest in these issues. At the same time, research is showing that CSR can be misused or simply deployed to benefit managers looking to score reputational points with stakeholders–at the expense of shareholders. By demonstrating that investor perceptions of firms are materially shaped by firms’ CSR activities, our study highlights the importance of–and helps build the case for–monitoring and regulating firms’ CSR activities.” Suhas A. Sridharan is an Assistant Professor of Accounting at Emory University's Goizueta Business School. Sridharan studies investors' use of information to assess risk and resolve uncertainty, particularly around issues of political economy. She is available to speak with media about the importantance of CSR - simply click on her icon now to arrange an interview today.