Data matters, and when it comes to understanding the critical drivers of economic value and social change, having access to reliable data is essential. One such valuable source of data is the Global Entrepreneurship Monitor (GEM), which has been examining entrepreneurial activity around the world since its establishment in 1999 as a joint venture of Babson College and the London Business School.
The recently released 2022–2023 United States Report by GEM reveals some fascinating insights into the entrepreneurial landscape in the U.S. According to the report, entrepreneurial activity in the country has reached its highest levels in GEM history, with record rates of 18% for women and 20% for men. Donna Kelley P’24, U.S. GEM team co-leader and chair of Babson’s Entrepreneurship Division, describes this record-breaking entrepreneurial activity as remarkable and highlights the significant impact that entrepreneurs have on reshaping the business landscape and driving social and environmental advancements.
One of the notable findings of this year’s report is the high entrepreneurial rate among young people, who are increasingly driven by social and sustainability concerns. Additionally, there has been a growing rate of entrepreneurship in the manufacturing sector, particularly among women. This shift towards manufacturing is seen as a response to the challenges exposed by the pandemic, such as supply chain disruptions and the country’s dependence on foreign production.
Candida Brush P’14, the F.W. Olin Distinguished Professor of Entrepreneurship, notes that there has been a noticeable shift in how women approach entrepreneurship post-COVID. Instead of focusing on low-entry barrier and low-margin local businesses, women are now creating ventures with a larger-scale impact, particularly in manufacturing, wholesale, and retail sectors. This shift raises questions about the long-term sustainability of this trend and its implications for the future of entrepreneurship in the U.S.
The GEM report also sheds light on the disparities in entrepreneurial activity among different racial groups. While Black and Hispanic entrepreneurs exhibit higher rates of entrepreneurial activity compared to their white counterparts, they are less likely to run established businesses. This disparity underscores the importance of understanding and addressing the factors that may be hindering the growth and success of businesses started by Black and Hispanic entrepreneurs.
Overall, the GEM data serves as a valuable tool for researchers, policymakers, and community leaders to gain insights into entrepreneurial activity and its impact on society. By tracking and analyzing trends in entrepreneurship, we can better understand how to support and encourage entrepreneurship across all sectors and populations. As Babson President Stephen Spinelli Jr. MBA’92, PhD, emphasizes, initiatives like GEM provide valuable insights from entrepreneurs and guidance to shape the trajectory of tomorrow’s world.
In conclusion, the GEM report highlights the transformative power of entrepreneurship and the importance of data in understanding and fostering entrepreneurial activity. Entrepreneurs have the potential to make a significant impact on their communities and the world at large, and by leveraging data-driven insights, we can support their efforts to drive positive social and environmental change.
