Newsroom
Cypriots are expressing strong interest in entrepreneurship and increasing confidence in their ability to launch businesses, according to the latest Global Entrepreneurship Monitor (GEM) report for 2024/2025. Despite this positive outlook, several long-standing challenges continue to limit the number of new companies being established.
The report found that four in ten adults in Cyprus believe there are good opportunities to start a business. Nearly half view the process of setting up a company as relatively straightforward, placing Cyprus close to the European average in perceptions of business accessibility.
Confidence levels among potential entrepreneurs remain particularly strong. Almost 60% of respondents said they have the knowledge, skills and experience needed to start a business, while more than two-thirds personally know someone who is already an entrepreneur. Researchers say this reflects the strong presence of business networks across the island.
Interest in entrepreneurship remains higher than the European average. Around 24% of adults expect to launch a business within the next three years, indicating continued enthusiasm for self-employment and business ownership.
However, concerns about failure continue to discourage many people from taking the next step. More than half of those surveyed said fear of failure influences their decision on whether to pursue a business venture.
The study also examined actual business activity. Early-stage entrepreneurship reached 9.7% of the adult population, while the share of people running established businesses climbed to 8.4%.
Entrepreneurial activity was found to be more common among younger adults and individuals with higher educational qualifications. A gap between men and women remains evident, particularly among those in the early stages of starting a business.
Many new entrepreneurs are optimistic about future growth. More than one-third expect their businesses to create at least six jobs within five years. The report also points to increasing use of digital technologies and artificial intelligence among emerging companies.
At the same time, several weaknesses continue to affect the business environment. The adoption of sustainability practices remains limited, while access to funding, entrepreneurship education, research and innovation support, and public assistance programs continue to present difficulties for many businesses.
Government officials and academic representatives described the findings as encouraging, citing strong entrepreneurial ambition among citizens. They also stressed the importance of continued cooperation between educational institutions, policymakers and the private sector to improve conditions for business creation and growth.
Small and medium-sized enterprises remain a key pillar of the Cypriot economy. Authorities say support for entrepreneurship remains a priority, with substantial funding already allocated through national programs and the Recovery and Resilience Facility during the 2021-2027 funding period.
