Twenty-four million U.S. entrepreneurs, or 14 percent of the population, are invigorating the American economy according to the 2014 Global Entrepreneurship Monitor (GEM) U.S. Report issued today by Babson College and Baruch College. This is the highest rate ever recorded in the United States.
Job creation outlook rose eight percentage points from 2013, with 24 percent of U.S. entrepreneurs projecting to hire 20 or more people in the next five years. Optimism about entrepreneurship is stronger than ever as more than half the U.S. population (51 percent) reported seeing good opportunities for starting businesses.
Fear of failure, which measures one’s willingness to take risks in starting a business, decreased to 30 percent from a high of 32 percent in 2012.
“The results show a high level of current activity accompanied with high optimism about the future,” commented Babson College Professor of Entrepreneurship Donna Kelley, the GEM Report’s lead author. “Entrepreneurial growth depends on people who see opportunities and have intentions to get started. The greater optimism we see in the U.S. signals high support for entrepreneurs, and the increase in job ambitions clearly indicates the potential for entrepreneurship to make major contributions to the U.S. economy.”
The Report, which generates insights about entrepreneurship in the U.S., records entrepreneurs’ profiles, motivations, and business characteristics while documenting the societal attitudes that often shape entrepreneurial success.
This year’s Report takes an in-depth look at the value of teamwork among entrepreneurs and continues to track the activity of women and both young and older entrepreneurs.
The Global Entrepreneurship Monitor is the world’s leading study of entrepreneurship. This is its 16th annual survey of entrepreneurship, providing a comprehensive look at entrepreneurship on a global level, and over time, with valuable insights for academics, policy makers, educators, and practitioners.
The GEM U.S. Report is authored by Babson professors Donna J. Kelley, Abdul Ali, Candida Brush, Andrew C. Corbett, Caroline Daniels,Phillip Kim, and Mahdi Majbouri, and Baruch College professors Thomas Lyons, and Edward G. Rogoff.
Check out the infographic below to learn more.