Entrepreneurship has been a driving force behind economies worldwide. According to a recent report by the Global Entrepreneurship Monitor (GEM), women, young people, and older individuals are becoming increasingly involved in entrepreneurship. In this article, we will discuss important statistics that reflect the current state of entrepreneurship growth.
Entrepreneurship is on the Rise
The number of new entrepreneurs is growing. In 2020, over 17 million Americans became entrepreneurs, up from approximately 11 million in 2019. This growth is primarily driven by the pandemic, which led to job losses and increased access to technology, making it easier for people to start businesses.
Startup Growth by Industry
The technology industry continues to drive much of the growth in entrepreneurship. According to GEM, tech-based startups increased by 40% in the United States. The retail industry also experienced significant growth, with over 60% of entrepreneurs pursuing opportunities in this sector.
Gender Gaps in Entrepreneurship
Women-owned businesses account for approximately 42% of all businesses in the United States. However, the number of female entrepreneurs is still considerably lower than their male counterparts. Women-owned startups tend to be smaller and generate less revenue. While there has been progress made in recent years, there is still a long way to go to close this gender gap.
Entrepreneurship for Young and Older Individuals
Young people are showing a growing interest in entrepreneurship, and approximately 19% of individuals between the ages of 18-24 started a new venture in 2020. On the other hand, older individuals are also becoming more active as entrepreneurs. According to a study by the Kauffman Foundation, individuals age 55-64 are doing relatively well as new entrepreneurs, with an average business survival rate of approximately 70%.
Entrepreneurship and Financial Access
Many entrepreneurs face challenges when it comes to securing adequate capital. In the United States, traditional financing options, such as banks and venture capital, are the primary source of startup capital. However, a majority of entrepreneurs (65%) opt for personal savings to finance their businesses.
Conclusion
The current state of entrepreneurship growth is promising, with a high number of new businesses opening up. The tech and retail industries are the driving forces behind the growth. While women, young people, and older individuals are increasingly involved in entrepreneurship, gender gaps persist. Moreover, entrepreneurs face significant challenges when it comes to accessing capital. As we move forward, it is essential to support and encourage entrepreneurship to further strengthen our economy.
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