Global Entrepreneurship Monitor's 2009 Global Report
By Sarah Lemmons, National Chamber Foundation
The Global Entrepreneurship Monitor (GEM) released its 2009 Global Report on entrepreneurship’s role in economic growth in countries across the globe. Alongside its global report, GEM released country-focused studies including an in-depth analysis on the entrepreneurial environment in the United States. GEM reports that only the percentage of “necessity-driven” entrepreneurial ventures increased meaning as Americans are losing their jobs; start-ups were solely being created for self-sustainability. GEM also reports that in the U.S. pessimism heightened and there was a significant drop in innovation.
2009 saw declines in new products and services, and declines in innovation were deeper for established businesses (25.7% of entrepreneurs reported developing innovative products in 2009, the corresponding number for established businesses is 9.9%).
Regardless of the decrease in innovation throughout America, it is among the countries with highest rates for emerging start-up activity. It was also ranked number three of the most favorable environments for entrepreneurs falling behind Denmark and Canada. An interesting breakdown of the gender gaps in various countries was also outlined.
Gender gap narrows—In 2008, the gender gap decreased between male and female prevalence rates among entrepreneurs. In 2009, both male and female prevalence rates declined with the gap remaining essentially unchanged.
In Peru, women slightly outweigh men by 0.4% involved in the early stages of a start-up company while women ranked equally with the percentage of men in Brazil. Only 7.3% of women in the U.S. initiate start-ups compared to 12% of men. (Learn more about how successful women in the U.S. are sustaining growth for their companies in an unpredictable economy on December 14.) Read GEM’s report.