Soaring US Entrepreneurship Sparks Innovation

By Tim Worstell Tim Worstell has been verified by Muck Rack's editorial team
Published on September 20, 2023

The Global Entrepreneurship Monitor (GEM) has recently reported that entrepreneurial endeavors in the United States have reached unprecedented levels, with 18% of women and 20% of men partaking in such activities. Donna Kelley, co-leader of the U.S. GEM team and head of Babson’s Entrepreneurship Division, considers this milestone remarkable and emphasizes its potential to create a positive social and environmental influence.

Unprecedented Increase in Entrepreneurial Activities

Both men and women have shown significant interest in building innovative and sustainable businesses, contributing to the diverse economic landscape of the country. This surge in entrepreneurship further demonstrates the United States’ unwavering commitment to fostering an environment where creative minds can thrive and develop solutions to pressing global challenges.

GEM’s 2022 Report on the Surge in Entrepreneurship

According to the GEM’s 2022 report, which analyzed responses from over 2,000 U.S. adults, this surge in entrepreneurial pursuits was initiated in 2015 and briefly slowed during the early stages of the COVID-19 pandemic. However, as the pandemic progressed and remote work became increasingly popular, many individuals turned to entrepreneurship as a means to adapt and thrive in the changing economic landscape. This shift also led to an increase in innovation and the creation of various business models that catered to the needs of individuals and businesses operating in a virtual world.

Entrepreneurship Across Various Industries

Contrary to the widespread belief that the majority of entrepreneurs are in the technology sector, the study demonstrated the prevalence of entrepreneurs across various industries. In fact, innovation and the entrepreneurial spirit can be found in industries ranging from healthcare to agriculture, showcasing the vast potential for growth in diverse fields. This broader understanding of entrepreneurship underlines the importance of dedicated support and resources for businesses in these non-technological sectors to facilitate their continued success and expansion.

Shift in Sector Focus for Entrepreneurs

The report pointed to a shift in entrepreneurship away from sectors such as finance, real estate, and business services, moving towards manufacturing and logistics. This trend can be attributed to the increasing global demand for manufactured goods and the need for efficient logistics to ensure smooth supply chain operations. Additionally, advancements in technology and automation have made it more feasible for startups to enter these sectors, attracting a new generation of entrepreneurs looking for innovative and sustainable business opportunities.

Growing Dependence on Domestic Production and Supply Chain Resilience

This transition, marked by an increase in entrepreneurial activities in these sectors from 12% in 2020 to 19% in 2022, might be attributed to the pandemic unveiling the nation’s dependence on foreign production and supply chain complications. As a result, more local businesses and individuals have recognized the importance of investing in domestic production to create a self-sufficient and resilient economy. This shift towards entrepreneurship in vital sectors has not only diversified the nation’s economic landscape but also helped reduce vulnerabilities related to supply chain disruptions.

Increasing Female Involvement in Manufacturing

Additionally, the study identified that women have been propelling this move into manufacturing, with 18% of female respondents initiating ventures in this sector, twice the rate of their male counterparts. This trend indicates a significant shift in gender roles within the manufacturing industry, which has historically been male-dominated. The growing involvement of women in launching manufacturing businesses could potentially lead to a more diverse and innovative sector, fostering fresh perspectives and new approaches to problem-solving.

Women as Global Entrepreneurs

Co-author Candida Brush believes the pandemic has altered women’s outlook on entrepreneurship, motivating many to establish businesses with a more substantial global influence. As a result, female entrepreneurs are increasingly embracing innovative strategies, harnessing digital tools, and collaborating across borders to expand their businesses’ reach worldwide. This shift in mindset has the potential to redefine the entrepreneurial landscape, empowering women to become influential drivers of economic growth and social change on a global scale.

FAQs about the Unprecedented Increase in Entrepreneurial Activities

What was the main finding of the Global Entrepreneurship Monitor (GEM) report?

The GEM report found that entrepreneurial activities in the United States have reached unprecedented levels, with 18% of women and 20% of men partaking in such activities across various industries, contributing to a diverse economic landscape.

When did this surge in entrepreneurial pursuits begin?

The surge in entrepreneurial pursuits began in 2015 and briefly slowed during the early stages of the COVID-19 pandemic. It picked up again as remote work became increasingly popular and many individuals turned to entrepreneurship to adapt to the changing economic landscape.

Are the majority of entrepreneurs in the technology sector?

No, the study found that entrepreneurs are prevalent across various industries, including healthcare, agriculture, and manufacturing, showcasing the vast potential for growth in diverse fields.

What is the shift in sector focus for entrepreneurs?

There has been a shift in entrepreneurship away from sectors like finance, real estate, and business services, moving towards manufacturing and logistics. This trend is likely driven by increasing global demand for manufactured goods, the need for efficient logistics, and advancements in technology and automation.

What is the growing dependence on domestic production and supply chain resilience?

Due to the pandemic exposing dependence on foreign production and supply chain complications, more local businesses and individuals are investing in domestic production to create a self-sufficient and resilient economy. This shift has also helped reduce vulnerabilities related to supply chain disruptions.

What is the trend regarding women in manufacturing?

The study identified a growing involvement of women in launching manufacturing businesses. About 18% of female respondents initiated ventures in this sector, twice the rate of their male counterparts, indicating a significant shift in gender roles within the historically male-dominated industry.

What is the impact of women as global entrepreneurs?

It is believed that the pandemic has altered women’s outlook on entrepreneurship, motivating them to establish businesses with a more substantial global influence. Female entrepreneurs increasingly embrace innovative strategies, digital tools, and international collaboration, which has the potential to redefine the entrepreneurial landscape and empower women as influential drivers of economic growth and social change globally.

First Reported on: babson.edu

The post Soaring US Entrepreneurship Sparks Innovation appeared first on Under30CEO.

By Tim Worstell Tim Worstell has been verified by Muck Rack's editorial team

Tim Worstell is a syndicate partner and columnist at Grit Daily. He is a strategic influencer in digital marketing and leadership. As an entrepreneur, he always looks for opportunities to help companies grow and reach their full potential. Building strong relationships with partners has been the key to building Adogy, a profitable growth marketing agency. Adogy is a company that specializes in thought leadership and SEO.

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