The most recent data from the new Global Entrepreneurship Monitor report reveals a powerful trend for the future of entrepreneurship. According to the Global Entrepreneurship Monitor 2023-2024 United States Report, young adults aged 18-24 had both the highest entrepreneurial activity and entrepreneurial intentions in the United States. This trend, which was also observed in 2022, signifies a fundamental shift that could have lasting impacts on the economy and society.
As the chair of the board for the Global Entrepreneurship Research Association and a professor of entrepreneurship at Babson College, I have firsthand experience of the impact of the research created by the Global Entrepreneurship Monitor. The following are three entrepreneurship trends from the new GEM report that are changing the landscape for the future.
1. Young Entrepreneurs on the Rise
Traditionally, entrepreneurship has been dominated by older, more experienced individuals. However, this year’s report shows that the youngest adults are now leading the way. According to GEM, 24% of 18- to 24-year-olds are engaged in some form of entrepreneurial activity, a higher rate than any other age group. What sets these young entrepreneurs apart is their commitment to making a positive impact on society and the environment. Many of them prioritize sustainability, building businesses with a core focus on reducing environmental footprints or supporting social causes. Despite facing challenges such as inexperience and limited access to capital, the enthusiasm and energy that young people bring to entrepreneurship are undeniable.
2. Tech Gender Gap Narrows
One of the most promising findings in the GEM report is the narrowing gender gap in the technology sector. Historically dominated by men, tech startups now see a record-low difference in the number of men and women starting businesses. The gap has narrowed to just 1%, with 8% of women compared to 9% of men launching businesses in the Information and Communication Technology (ICT) sector. While progress is being made, continued efforts to provide equal opportunities are essential to ensure this trend continues.
3. Optimistic Outlook for Black and Hispanic Entrepreneurs
The report also highlights the optimistic outlook among Black and Hispanic entrepreneurs. These groups show stronger confidence in their entrepreneurial abilities and lower fear of failure compared to their white counterparts. Black respondents, in particular, demonstrate high levels of resilience and self-assurance, which are crucial in overcoming barriers in starting and sustaining businesses. While this optimism is encouraging, there is still work to be done to ensure equal opportunities for all aspiring entrepreneurs, regardless of their background.
In conclusion, the GEM report paints a picture of an entrepreneurial future driven by purpose, diversity, and innovation. To fully realize the potential of the next generation of entrepreneurs, there must be a focus on addressing the challenges they face and providing them with the necessary resources and support. By fostering environments that support young entrepreneurs and underrepresented groups, we can create businesses that make a lasting, positive impact on the world.
