New research from the Global Entrepreneurship Monitor (GEM) found that 74% of global entrepreneurs started their businesses to pursue opportunities, as opposed to taking that step out of necessity. The GEM 2017/18 Global Report is based on data from 54 economies that account for 68% of the global population and 86% of worldwide GDP.
GEM was founded as a joint venture between Babson College and the London Business School, studying since 1999 the behavior of individuals who start and manage businesses. The latest report was sponsored by Babson College, Universiti Tun Abdul Razak, Korea Entrepreneurship Foundation, and Universidad Del Desarrollo.
The report found that innovation within worldwide economies, defined as the extent to which entrepreneurs introduce new products offered by few competitors, is highest in North America at 40%. Also, 61% of all entrepreneurs in North America work within the professional services, finance, and technology sectors, compared to developing economies where over half their entrepreneurs operate in retail and wholesale fields.
The report surveyed a range of areas pertaining to entrepreneurship from job creation, innovation, self-perceptions about entrepreneurship, the types of entrepreneurial activity, gender participation and more.
Highlights of some of those areas are:
- Approximately 70 percent of adults globally feel entrepreneurs are well regarded and have a high status within their societies
- Globally, 43% of the population view there to be opportunities for starting a business within six months, with North America having the highest rate of perceived opportunity at 62 percent.
- The most active entrepreneurs globally are in the age ranges of 25-34 and 35-44
- The No. 1 reason for stopping, given in 2017, 2016, and 2015, was lack of business profitability.
- In Ecuador, Vietnam, and Brazil, women hold higher entrepreneurship rates than men at 31%, 25%, and 21% respectively.
- North America ranks the highest in opportunity motivation with 83%, with Europe at 75%, Asia and Oceania at 74%, the Caribbean and Latin America with 72%, and Africa at 71%.
