1. European start-up hubs are now an integral part of the global innovation culture – Diversity is a key driver of innovation
2. Against this backdrop, Roland Berger and Numa are analyzing the European start-up scene – Starting with France
3. The typical French start-up entrepreneur is young, male, elite school educated and seeking a business challenge
4. Making the right decisions is the critical factor, especially in the start-up phase – But few take advantage of outside support

Munich, April 14, 2016

France's start-up scene is young, male, very well educated and seeking a challenge. And it is growing fast, just like other European start-up hotspots. Europe's big cities are establishing themselves alongside the well known centers of innovation in Silicon Valley as key elements in the global start-up culture. Away from the hype of some of the American business concepts, what Europe's hubs have to offer is a great deal of diversity – a key driver of innovation culture.

Keen to shine a light on the specific features of European start-ups, experts from Roland Berger and the French accelerator NUMA are analyzing the start-up scene in various hotspots across the continent, asking players about their motivation and goals along with the problems and difficulties they may be facing. France was first on the list and the results are summarized in the new study, "375 Startupers – Profiles, trends and startupers in their own words".

"We wanted to know about the people who are establishing start-ups in France," said Philipp Leutiger, Partner and start-up expert from Roland Berger. "We asked, what characterizes the typical French start-up CEO, what drives them, what problems and obstacles stand in their way?" This knowledge is something that other entrepreneurs can learn from, along with investors, policymakers and sponsors, too. For the purposes of their study, the experts polled 375 French start-ups that applied to take part in the NUMA business accelerator program. Fully 75% of the interviewees are under the age of 34, and 35 percent are between 25 and 29 years of age. Most of the young entrepreneurs surveyed (46%) graduated from one of France's elite schools. Just 32 percent of respondents hold a regular university degree, and 4 percent earned a doctorate. Degrees from engineering or business schools account for 23 percent each.

On the face of it, one finding is surprising: 81 percent of the start-up entrepreneurs who responded to the poll are male, and just 19 percent are female. "Women are still not taken seriously much of the time, even in young and open-minded entrepreneur circles," said Leutiger. "That is a shame, because if the French start-up culture is to continue to build momentum, it'll be important to bring more diversity into the ideas and concepts – and especially more diversity into the group of entrepreneurs itself."

Seeking challenge is the main motivation

Asked about their motivation for starting a company, almost three quarters of those polled (72%) cited their need for a challenge. Some 56 percent are keen to change the market with their business ideas and 40 percent seek independence and more autonomy in their work. "This shows the attitude that prevails among start-up entrepreneurs compared to people in conventional companies," said Nicolas Teisseyre, Partner at Roland Berger's Paris office. "In our interviews with respondents we often heard them express the view that being in the position of an employee felt restricting and they could not imagine being able to realize their projects and ideas in that role."

When it comes to the criteria governing their choice of industry, half of respondents cited the sector's anticipated growth potential. More than one third (36%) mentioned an unmet need, and the same number said they had an innovative product for this market. The typical industries are lifestyle and leisure (12.2%), art and design (11.8%) and consumer goods (8.4%). The less attractive sectors for start-ups include industries like transportation (2.0%) and financial services (1.7%).

Support from mentors and networks important

The entrepreneurs frequently cited the fact that making decisions represents the biggest challenge for them, especially in the early stage when the brand new start-up is most at risk. About 62 percent of young start-up entrepreneurs make decisions alone or with their start-up partner. Only 20 percent have an advisor with whom to discuss matters of strategy. And just 18 percent accept advice and help from their networks outside the company. "And yet support in setting a business on the right strategic path is so very important in the initial phase," said Teisseyre. "Even though many start-up entrepreneurs have good ideas and a solid background, only 30 percent make it through the first year. They mostly lack the financial staying power."

That said, support in financial matters is not top priority for the majority of those polled – only two percent of respondents would be keen to have a mentor in this area. What they really want is a proper understanding of the markets and customer requirements and to use that to develop the right products. "If a company is growing fast and there is the prospect of profitability as well, the investors will come knocking," said Leutiger. Around one third of study participants therefore desire the support of market experts and 29 percent want a technical expert by their side. And networks that would enable them to make contact with potential customers or business partners are considered important by a full 75 percent of study participants as they strive to take their business forward.