The Future of Entrepreneurship: Insights from the Global Entrepreneurship Monitor Report

Opinions expressed by Entrepreneur contributors are their own. The most recent data from the Global Entrepreneurship Monitor (GEM) report reveals a powerful trend for the future of entrepreneurship. Young adults, aged 18-24, are leading the charge in entrepreneurial activity and intentions in the United States, as highlighted in the GEM 2023-2024 United States Report. This trend, which mirrors findings from 2022, signifies a fundamental shift that could have lasting impacts on the economy and society.

As the chair of the board for the Global Entrepreneurship Research Association, which oversees GEM, and as a professor of entrepreneurship at Babson College, I have witnessed firsthand the transformative power of the research produced by GEM. Here, I will outline three key entrepreneurship trends from the latest report that are reshaping the landscape for the future.

1. Young Entrepreneurs on the Rise

For years, entrepreneurship has been the domain of older, more experienced individuals. However, the latest GEM report reveals that the youngest adults are now at the forefront of this movement. A striking 24% of 18- to 24-year-olds are engaged in some form of entrepreneurial activity, surpassing any other age group. What drives these young entrepreneurs is equally remarkable: they are not merely motivated by profit; many are deeply committed to making a positive impact on society and the environment.

Sustainability has emerged as a core priority for these young entrepreneurs. They are more likely than their older counterparts to build businesses that prioritize sustainability, whether that means reducing their environmental footprint or focusing on social causes. This shift toward impact-driven entrepreneurship is not just anecdotal; GEM data shows a significant number of young entrepreneurs taking tangible steps to create businesses that align with their values. With sustainability as their guiding principle, these young innovators are pursuing both societal impact and profitability.

However, the journey is not without its challenges. While young people are leading the way in starting businesses, they also face higher discontinuation rates than older entrepreneurs. The discontinuation rate for 18- to 24-year-olds stands at 15%, the highest among all age groups. This trend can be attributed to the challenges of inexperience and limited access to capital. Starting a business is tough, and sustaining one is even more challenging. Nevertheless, the enthusiasm and energy that young people bring to entrepreneurship are undeniable. With the right support, this generation has the potential to drive substantial change.

2. Tech Gender Gap Narrows

One of the most promising findings in the GEM report is the narrowing gender gap in the technology sector. Historically, tech startups have been male-dominated, but 2023 saw a record-low difference in the number of men and women starting tech companies. The gap has narrowed to just 1%, with 8% of women compared to 9% of men launching businesses in the Information and Communication Technology (ICT) sector.

This progress reflects broader efforts to support women in technology startups. However, while strides are being made, it is crucial to maintain a focus on providing equal opportunities to ensure this trend continues. The tech industry must foster an environment where women can thrive as entrepreneurs, and this requires ongoing commitment from all stakeholders.

3. Optimistic Outlook for Black and Hispanic Entrepreneurs

Another highlight from the GEM report is the optimistic outlook among Black and Hispanic entrepreneurs. These groups exhibit stronger confidence in their entrepreneurial abilities and lower fear of failure compared to their white counterparts. Black respondents, in particular, demonstrate high levels of resilience and self-assurance, which are vital in overcoming the barriers faced in starting and sustaining businesses.

This optimism is encouraging, but it is essential to recognize that there is still much work to be done to ensure that ecosystems offer equal opportunities for all aspiring entrepreneurs, regardless of their background. By addressing systemic barriers and providing the necessary support, we can help foster a more inclusive entrepreneurial landscape.

A Promising Future

Reflecting on the key findings of this year’s GEM report, it is evident that the entrepreneurial landscape is changing in meaningful ways. The rise of young, sustainability-driven entrepreneurs signals a future where business is not solely about profit but also about making a difference. These young innovators are launching businesses at a time when the world is seeking solutions to pressing challenges such as climate change, poverty, and economic recovery.

To fully realize the potential of this next generation, we must focus on addressing the challenges they encounter. Young entrepreneurs need access to the right resources—whether it be funding, education, or mentorship—to transform their innovative ideas into sustainable businesses. The narrowing gender gap in tech is encouraging, but we must continue to cultivate environments that support women and other underrepresented groups in entrepreneurship.

The GEM report paints a picture of an entrepreneurial future driven by purpose, diversity, and innovation. However, it also serves as a reminder of the work that lies ahead in making entrepreneurship more accessible and sustainable. By providing young entrepreneurs with the tools and support they need, we can not only witness the creation of more businesses but also the emergence of enterprises that make a lasting, positive impact on the world.