The views expressed by the business participants are their own.
The latest data from the new Global Entrepreneurship Monitor report reveals a strong trend for the future of entrepreneurship.
Young adults, ages 18-24, had the highest entrepreneurship activity and entrepreneurial intentions in the United States, according to the Global Entrepreneurship Monitor 2023-2024 United States Report. With the same results in 2022, this is not just a small change – it is a significant change that could have a lasting impact on the economy and society.
I serve as chairman of the board of the Global Entrepreneurship Research Association, the governing body of GEM, which was established in 1999 as a joint venture of Babson College and London Business School. As the GEM US team leader and a professor of entrepreneurship at Babson, I see firsthand the impact of the research created by the Global Entrepreneurship Monitor.
Here are three business trends from a new GEM report that are changing the landscape of the future.
Related: 21 Success Tips for Young and Aspiring Entrepreneurs
1. Young entrepreneurs are growing
For years, businesses have been run by older, more experienced people, but this year’s report shows that the youngest are at the forefront. According to GEM, 24% of 18- to 24-year-olds run some form of business, the highest rate of any other age group. What drives these young entrepreneurs is equally remarkable: They don’t just start businesses to make money; many are deeply committed to making a positive impact on society and the environment.
These young entrepreneurs are making sustainability a priority. It is more likely than entrepreneurs from older generations to build businesses with sustainability as their primary focus – whether that means reducing their environmental footprint or focusing on social causes. This shift to an impact-driven business is not unusual. GEM data shows a significant number of young entrepreneurs taking real, measurable steps to build businesses that align with their values. With sustainability as their north star, small business owners seem to simultaneously pursue social impact and profit.
However, not all sailing is smooth sailing. Although young people are at the forefront of starting businesses, they are also establishing them at higher rates than their older counterparts. The dropout rate for 18- to 24-year-olds is 15%, the highest of all age groups. This is not surprising, given the challenges of lack of knowledge and limited access to finance. Starting a business is hard, and maintaining it is even more challenging. But despite these challenges, the enthusiasm and energy that young people bring to business cannot be denied, and with the right support, this generation has the power to drive big changes.
2. The technology gender gap is narrowing
Another promising finding in the GEM report is the narrowing of the gender gap in the technology sector. Historically, tech startups have been dominated by men, 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 is an important step forward and reflects broader efforts to support technology adoption for more women. However, it is important to note that while progress is being made, a continued focus on providing equal opportunities is essential to ensure that this trend continues.
3. An optimistic outlook for black and Hispanic entrepreneurs
Another highlight of the report is the sense of hope among Black and Hispanic entrepreneurs. These groups showed more confidence in their entrepreneurial abilities and fear of failure compared to their white counterparts. Black respondents, in particular, demonstrated high levels of resilience and self-assurance, which are essential in overcoming barriers to starting and sustaining businesses. This optimism is encouraging, but there is still a lot of work to be done to ensure that the environment provides equal opportunities for all budding entrepreneurs, regardless of their background.
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A promising future
Looking at the key findings of this year’s GEM report, it is clear that the business environment is changing in significant ways. The rise of young, sustainability-driven entrepreneurs points to a future where business is not just about profit but about making a difference. These young entrepreneurs are launching businesses at a time when the world is looking for solutions to some of its most pressing challenges – climate change, poverty and economic sustainability.
However, in order to fully unleash the potential of this next generation, greater focus must be placed on addressing the challenges we face. Young entrepreneurs need access to the right resources – be it funding, education or training – to turn their new ideas into sustainable businesses. The narrowing gender gap in technology is encouraging, but we must continue to promote spaces that support women and other underrepresented groups in business.
The GEM report paints a picture of a business future driven by purpose, diversity and innovation. But it also reminds us of the work still to be done in making businesses accessible and sustainable. If we can give young entrepreneurs the tools and support they need, we won’t just see more businesses being created – we’ll see businesses making a lasting, positive impact on the world.
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