GEM Report Highlights the Resilience and Changing Face of Entrepreneurs

Some interesting trends emerged from this year’s Global Entrepreneurship Monitor (GEM) National Entrepreneurial Assessment for the US, an annual report produced by Babson College and Baruch College.  For one thing, the demographics of US entrepreneurs are shifting. 

Typically, the report examines entrepreneurial activity for those in the 18-64 age range.  This year, given growing evidence of entrepreneurial activity in people over the age of 64, the report extended its study to the age of 99.  The report showed there was a reduction of about one percent (from 9 percent down to 8 percent) in entrepreneurial activity in the 18-44 age group, while activity in the age group between 45-99 showed an increase of a similar amount. 

In addition, total entrepreneurial activity (TEA) among women showed a marked increase from 6.1 percent in 2007 to 7.5 percent in 2008, while the TEA for men showed a slight decrease (10.7 percent in 2007 as compared to 9.8 percent in 2008).  African Americans have higher levels of startup activities than whites (13.9 percent vs. 8.4 percent) and activities of non-Mexican Hispanics are near those of whites for startups (8.1 percent compared to 8.4 percent). 

Overall US TEA increased to 10.8 percent in 2008 from 9.6 percent in 2007 despite challenging economic conditions.  US entrepreneurs remain what the GEM report calls “opportunity obsessed” with 87 percent of those surveyed stating they started their ventures in response to a business opportunity, not out of necessity.  And the GEM report further indicates that the US remains at or near the top of the world’s innovation-driven economies in terms of early-stage entrepreneurial activities.

For more details, download the GEM report.