39.8%

of adults in Cyprus said they saw good opportunities to start a business in their area in 2023/24.

60.5%

of adults in Cyprus believed they had the skills, knowledge, and experience to start a business.

53.3%

of adults in Cyprus said fear of failure would stop them from starting a business.

11%

of adults in Cyprus were involved in early-stage entrepreneurial activity, meaning they were either starting a business or running a new one.

Key Findings

GEM Cyprus 2023/24

The GEM Cyprus 2023/24 Report presents the latest national picture of entrepreneurship in Cyprus, combining public attitudes, entrepreneurial activity, and expert assessment of the wider ecosystem. This edition marks Cyprus’ eighth consecutive year of participation in the Global Entrepreneurship Monitor, offering a valuable view of how entrepreneurship is evolving over time and how Cyprus compares with other European economies.

Overview

The 2023/24 findings point to a meaningful shift in Cyprus’ entrepreneurial landscape. Public sentiment has become more positive, early-stage entrepreneurial activity has strengthened, and several core indicators now outperform the European average. At the same time, the report also shows that important barriers remain, particularly in entrepreneurial education, access to finance, and support structures for innovation and growth.

Entrepreneurship in Cyprus at a Glance

In 2023/24, 39.8% of adults in Cyprus said they saw good opportunities to start a business. 60.5% believed they had the skills and knowledge to do so, while 50% said it is easy to start a business in the country. At the same time, 53.3% said fear of failure would prevent them from starting a business, showing that confidence and caution are rising side by side.

Cyprus also maintained strong social exposure to entrepreneurship. 66.9% of adults said they personally know an entrepreneur, a figure that remains well above the European average even though it declined from the previous year.

Stronger Early-Stage Entrepreneurial Activity

One of the clearest findings of this year’s report is the growth in early-stage entrepreneurship. Cyprus’ Total Early-Stage Entrepreneurial Activity (TEA) rose to 11%, up from 8.3% the previous year. This placed Cyprus above the European average of 9.2% and ahead of both Greece (6.7%) and Luxembourg (9.7%). Cyprus also ranked 7th in Europe on TEA, signaling a notable recovery in entrepreneurial momentum.

The report also records growth in the earlier and more established stages of entrepreneurship. Nascent entrepreneurial activity increased to 6.8%, up from 4.5% the year before. New business ownership rose to 4.7%, while established business ownership increased to 8.2%, up from 5.7%. Together, these figures suggest not only stronger business creation, but also greater stability among more established ventures.

Ambition, Growth, and International Outlook

The report also highlights the growth ambitions of entrepreneurs in Cyprus. Among those involved in early-stage entrepreneurial activity, 22.4% expected at least a quarter of their revenues to come from outside Cyprus, pointing to a meaningful international outlook. The report also notes that Cypriot entrepreneurs show encouraging expectations around expansion and future impact.

Who Is Driving Entrepreneurship?

The profile of entrepreneurship in Cyprus continues to show stronger participation among younger adults. The 18–34 age group remains the most active in early-stage entrepreneurship, with a notably higher TEA rate than the 35–64 age group. This suggests that entrepreneurial momentum in Cyprus is being driven in large part by younger adults.

The report also shows that the gender gap in entrepreneurship remains an important issue. In 2023/24, the female-to-male TEA ratio in Cyprus stood at 0.5, a slight improvement from 0.4 the previous year, but still below the European average of 0.7. While overall participation is improving, the findings suggest that more targeted support is needed to build a more inclusive entrepreneurial environment.

Ecosystem Strengths

At the same time, the report makes clear that several structural weaknesses continue to hold the ecosystem back. The most critical weakness identified is Entrepreneurial Education at the school level, which scored just 2.1. Entrepreneurial Finance and Government Entrepreneurial Programs both scored 3.5, while R&D Transfer scored 3.4, indicating ongoing gaps in funding, innovation support, and the ability to translate ideas into scalable ventures.

The report also notes that the overall entrepreneurial context in Cyprus remains relatively weak, with the National Entrepreneurship Context Index (NECI) standing at 4.0. This indicates that while entrepreneurial activity itself is improving, the broader support environment still requires targeted strengthening.

What the Findings Mean

Taken together, the findings from GEM Cyprus 2023/24 suggest a country with growing entrepreneurial energy and improving public confidence, but also clear structural areas that require attention. Cyprus is seeing more early-stage entrepreneurial activity, stronger recovery in business creation, and encouraging signs of ambition and outward-looking entrepreneurship. At the same time, fear of failure remains high, the gender gap persists, and the ecosystem still needs stronger education, finance, and innovation support.

The report ultimately points to a clear direction: Cyprus has momentum, but long-term progress will depend on translating that momentum into stronger systems. More inclusive policies, better entrepreneurship education, improved financing pathways, and stronger support for innovation will be key to building a more resilient and competitive entrepreneurial ecosystem.