For the second consecutive year, young entrepreneurs – ages 18 – 24 years of age – are starting businesses at higher rates than older generations, according to the Global Entrepreneurship Monitor 2023/2024 United States Report authored by Babson College professors Candida G. Brush, Andrew C. Corbett, Caroline Daniels, Donna J. Kelley, Mahdi Majbouri and Jeffrey Shay.
The latest GEM USA report polled 3,200 U.S. adults in the summer of 2023. It highlighted a continuation of last year’s surge in Total Entrepreneurial Activity (TEA) being driven by these young 18-24 years of age entrepreneurs (TEA measures the percentage of adults actively engaged in starting or running a new business). Nearly one-fourth of those in this age range surveyed (24%) are currently entrepreneurs, and 21% are intending to start a business in the next three years. From 1999 – 2021, the highest TEA levels were consistently among the 25–34 or 35–44 age groups.
The report notes the following: “These young adults are often regarded as having creative ideas and a willingness to experiment. Additionally, they have the rest of their careers to make up any losses if their ventures do not work out, and they can apply what they learn as young entrepreneurs to their careers moving forward. However, they may not have the experience, resources and networks of those who have been in the workforce for at least several years. It may therefore be valuable to help them generate personal assets that they can leverage in their entrepreneurial pursuits and guide them in applying what they are learning along the way to maximize the success of their ventures.”
Other Key Findings
The report also noted:
- The biggest motivation for starting a business in 2023, just as in 2022, resulted from job scarcity (62.5%). There was a one-third increase in this motivation from 2021 to 2023.
- Job creation expectations increased by one-third in 2023 compared with the previous year, with 72% of entrepreneurs stating that they expect to create at least one job in the next five years.
- Established business owners also are creating more jobs, with two-thirds currently having at least one employee and 12% employing 20 or more.
- Women narrowed the gender gap in starting information and communication technologies (ICT) businesses, more than doubling their rate of participation in this sector from 2022, to 8% in 2023, while men showed little change over the same time period (9% in 2023).
About the Research
This marks the 25th GEM USA Report (GEM was founded in 1999 as a joint venture between Babson College and the London Business School). The annual report tracks entrepreneurship rates and characteristics, as well as attitudes and self-perceptions about starting businesses, across all genders, races/ethnicities, and age groups. The research aims to educate and inform policymakers, practitioners, and other audiences who are helping to share the future of the business world.
Learn More
You can access the full report at the following link.