It is question that has been asked for many years.
Here is what we learned in the latest GEM Global Report:
- Access (by entrepreneurs) to a knowledgeable and motivated network
of other entrepreneurs is an important promoting factor for the spread of entrepreneurship. Silicon Valley and other high-profile innovation hubs have greatly benefited from this motivating, knowledge- brokering dynamic. The 2019 GEM research found that the proportion of adults (18–64 years old) knowing someone who had started their own business in the past two years varies considerably between countries, from less than one in five in Japan to more than four out of five in Saudi Arabia. While this global variation in part reflects different prevalence rates for entrepreneurship, it also says something about culture and social norms.
- Entrepreneurship largely depends on the fact that would-be entrepreneurs spot the opportunities that may convert to interesting business propositions. Interestingly, the 2019 GEM research shows that Japan also has the lowest share of adults seeing good opportunities to start a business, at around one in 10, perhaps indicating a prevalence towards other forms of income generation. On the other hand, almost nine out of 10 adults in Poland and eight out of 10 in Sweden and India see good opportunities to start a business. Seeing good opportunities is a crucial first step on the entrepreneurial journey. After all, it does not matter how many opportunities there are if they are not recognized as such, and by the right people.
- Self-belief, and confidence in one’s ability to succeed, are indicators of one’s readiness for entrepreneurship. In 36 of the 50 economies, more than half of the population consider that they have the skills, knowledge and experience to start their own business, while in 42 of the 50 economies, less than half of those who see good opportunities would be deterred by fear of failure.
- In Egypt, India, Madagascar and Guatemala, more than six in 10 adults agree that they rarely see business opportunities, and, in those countries, a similar proportion agree that, even when they see an opportunity, they rarely act on it. Why, in some economies, are people reluctant to act on opportunities? The GEM results point to plenty of opportunities to further empower entrepreneurs, whether through implementing enabling policy changes, or educating more or educating differently.
- Self-belief, in turn, is nurtured by others’ belief in one’s entrepreneurial potential. The share of adults agreeing that they are thought by others to be highly innovative ranges from less than two in 10 in Japan, to more than seven in 10 in Guatemala, Brazil and Madagascar.
For more information, access the Global Report (Chapter 2 – The Social and Cultural Foundations of Entrepreneurship page 28).