The Global Entrepreneurship Monitor is the largest and longest-standing globally focused entrepreneurship research. Researchers from Babson College, the London Business School, and a university team for each participating country, explore the role of entrepreneurship in national economic growth. More than 200 scholars and researchers are currently participating in the GEM project. The results of GEM data analysis are used as a key benchmarking indicator by a number of distinguished regional, national and supranational authorities around the world. GEM’s unique ability to provide information on the entrepreneurial landscape of countries in a global context makes its data a necessary resource for any serious attempt to study and track entrepreneurial behavior worldwide. GEM’s renewed vision will allow researchers to further increase their ability to educate policy makers and make a difference in our economies.
In January 2008, Babson College invited Baruch College to join the GEM United States Team. The partnership brings together the expertise from the Blank Center for Entrepreneurial Studies at Babson College with experts from the Lawrence N. Field Center for Entrepreneurship at Baruch College. One of the many interesting synergies of this collaboration is the additional data from the Field Center’s research on minority entrepreneurship. Section 3 of the 2006-2007 National Entrepreneurial Assessment for the United States of America report explores issues related to Korean American and Mexican American business owners and the issues hypothesized to have an impact on business ownership patterns including education, gender, family structure and responsibilities, access to capital, business experience, personal and family goals, and business management and performance. The GEM 2008 Adult Population Survey includes several new questions aimed at shedding more light on minority entrepreneurship.
Key Findings in the 2013 Report:
The U.S. continues to lead in entrepreneurship activity.
- Nearly 13 percent of the U.S. population (an estimated 25 million Americans) was in the process of starting or running a new business—the highest entrepreneurship rate reported among 25 developed economies surveyed from North America, Europe, and Asia.
- An estimated 7.7 million of these entrepreneurs projected employing five or more people in the next five years.
- Most U.S. entrepreneurs start businesses to pursue an opportunity. Still, rates of starting businesses out of necessity are persistently higher than before the 2008 recession.
Upbeat Attitude: Americans are upbeat about the entrepreneurial environment.
- 47 percent believe there are good opportunities for starting a business, the highest level reported since the Report began in 1999.
- 56 percent of Americans believe they have the capabilities to launch a business—a remarkably stable indicator despite recent fluctuations in the economic environment, and highest among the 25 developed economies assessed in the Report.
Impactful: U.S. entrepreneurs are planning to create jobs and are introducing innovative products and services.
- 37 percent expect to employ six or more employees in the next five years.
- More than one-third say they offer innovative products or services to new customers with few competitors.
Internally Focused: U.S. entrepreneurs are missing opportunities for growth and globalization.
- Only 11 percent report that more than 25 percent of customers come from outside the U.S.
- Less than 1 percent have more than 25 percent Canadian customers and only 2 percent have that many Mexican customers.
Motivated Women Entrepreneurs: One out of 10 women in the U.S. is starting or running a new business. This is the highest rate among the 25developed economies assessed in the Report.
- There are an estimated 3.73 million American women with growth-oriented businesses.
- The proportion of women entrepreneurs who want to grow their businesses by more than five employees in the next five years increased from 31 percent in 2012 to 36 percent in 2013.
- Yet, gaps between women and men in entrepreneurship rates, intentions to start, and perceptions of opportunities are greatest in the 35–44 year-old age range. Men experience peak levels of entrepreneurship rates and opportunity perceptions compared to women in this age category.
Older entrepreneurs are engaged: The U.S. has the highest rate of entrepreneurship among 55–64 year olds in the 25 developed economies surveyed.
- Older entrepreneurs are supported by resources and positive attitudes. More than half come from the highest third of household income.
- They are equally likely as younger Americans to see entrepreneurial opportunities and are less risk averse.
- Older entrepreneurs are more confident in their abilities to start businesses than those 18–44 years of age.
The Happiness Factor: Among the adult population, those with more positive well-being scores are much more likely to perceive opportunities for entrepreneurship.
- Happiness levels among women entrepreneurs surge as their ventures mature.
- Opportunity-based entrepreneurs are more satisfied with their lives, which they describe as “excellent” and “close to ideal”, than those who do not become entrepreneurs.
- Adult entrepreneurs with a positive outlook reported higher perceptions of entrepreneurial capabilities and lower fear of failure rates than those with lower well-being scores.
Entrepreneurship in Four States: In 2013, GEM looked at the entrepreneurship profiles of California, Michigan, New York, and Texas.
- California: has many international entrepreneurs and reports high levels of gender equality; still, necessity-driven entrepreneurship rates are also high.
- Michigan: entrepreneurship tends to attract men and people in their mid-careers. It has more manufacturing, but less international activity than is nationally reported.
- New York: shows high levels of youth participation, with fewer women than men entrepreneurs and a thriving business service sector.
- Texas: has wealthy, educated entrepreneurs with high-growth ambitions and an international scope.