The Global Entrepreneurship Monitor (GEM) has been a key player in analyzing entrepreneurial activity in the United States and worldwide for the past 25 years. This year’s milestone GEM national report sheds light on a promising trend for the future of entrepreneurship.
According to the Global Entrepreneurship Monitor 2023–2024 United States Report released by Babson College, young entrepreneurs are leading the way in starting businesses and planning to start businesses at higher rates than older generations for the second consecutive year. The report, based on a survey of 2,000 U.S. adults in the summer of 2023, reveals a surge in Total Entrepreneurial Activity (TEA) driven by young entrepreneurs.
The youngest age group of entrepreneurs surveyed, 18- to 24-year-olds, exhibited the highest rates of entrepreneurial activity and intentions to start a business in the next three years. This shift marks a departure from previous GEM reports, which typically found higher TEA rates among older age groups. Additionally, young entrepreneurs are more likely to prioritize sustainability and social impact in their business ventures compared to older entrepreneurs.
Donna Kelley, GEM U.S. team co-leader and professor of entrepreneurship at Babson, emphasizes the positive impact of young adult entrepreneurship on society and the environment. She believes that the energy and creative ideas of young entrepreneurs can drive meaningful change for people and the planet.
The 25th GEM U.S. report underscores the strength of the next generation of entrepreneurs and their potential to shape the future of entrepreneurship as a force for positive change. Babson President Stephen Spinelli Jr. commends the initiatives taken by young entrepreneurs to become the leaders of tomorrow, highlighting their commitment to making a difference in society.
In addition to the rise of young entrepreneurs, the latest GEM U.S. report also highlights the strong entrepreneurial activity among Black entrepreneurs. Black entrepreneurs exhibited the highest TEA rate, double that of their white and Hispanic counterparts, and displayed high levels of confidence in their ability to start a business.
Other key findings from the report include the increasing motivation to start a business due to job scarcity, higher job creation expectations among entrepreneurs, and women narrowing the gender gap in starting information and communication technologies (ICT) businesses.
Overall, the GEM report paints a picture of a vibrant and diverse entrepreneurial landscape in the United States, with young entrepreneurs and underrepresented groups playing a significant role in driving innovation and positive change. As we look towards the future, it is clear that the next generation of entrepreneurs holds the key to shaping a more sustainable and inclusive business environment.
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