Report also sheds light on trends in technological innovation, business maturity, entrepreneurial diversity, and more
Wellesley, Massachusetts--(Newsfile Corp. - March 26, 2025) - Today, Babson College released the Global Entrepreneurship Monitor (GEM) United States 2024 report, which revealed the return of total entrepreneurial activity to a historic high and highlighted the role of job scarcity in motivating entrepreneurs to start businesses.
This GEM United States National Report, based on the 26th annual survey of entrepreneurship conducted in the United States and 50 other economies worldwide in 2024, advances GEM's mission to provide globally comparable data on entrepreneurship. These surveys produce data on rates of participation across phases of business startup and ownership, characteristics of entrepreneurs and their businesses, and the entrepreneurial attitudes, affiliations, and self-perceptions of people in a society.
"This is a powerful indicator of the creativity and ambition of American entrepreneurs," said Babson College Professor of Entrepreneurship Donna Kelley, who has been leading the annual GEM U.S. study since 2011. "This year's report reveals a broad cross-section of Americans starting businesses, including veterans and active-duty military, immigrants and Americans born abroad, and also demonstrating gender and racial/ethnic diversity. Collectively, these entrepreneurs contribute to job creation, innovation and global competitiveness for the United States."
Select findings include:
- More businesses starting but fewer lasting
- Total Entrepreneurial Activity (TEA) returned to the historic high of 19% reached two years earlier. This signals significant entrepreneurial dynamism across the U.S. TEA measures the percentage of adults actively engaged in starting or running a new business.
- Total Entrepreneurial Activity (TEA) returned to the historic high of 19% reached two years earlier. This signals significant entrepreneurial dynamism across the U.S. TEA measures the percentage of adults actively engaged in starting or running a new business.
- Job scarcity is a major motivator to start a business
- Over two-thirds of entrepreneurs cite job scarcity as a motive for starting a business, continuing an upward trend since 2022.
- Additionally, only 6.6% of Americans run mature businesses-below the average of 32 high-income economies-with closures rising, many due to unprofitability and financing issues.
- Over two-thirds of entrepreneurs cite job scarcity as a motive for starting a business, continuing an upward trend since 2022.
- Societal assumptions, involvement of women in entrepreneurship on the rise
- Women reported higher capability perceptions in 2024, over the prior year, although nearly one-quarter lower than for men (48% vs 63%).
- Women entrepreneurs showed a nearly one-quarter increase over the prior year in the percentage with international market scope in 2024, equal to the level reported by men (27%).
- Women reported higher capability perceptions in 2024, over the prior year, although nearly one-quarter lower than for men (48% vs 63%).
- Diversity increasing in entrepreneurship
- Black (90%) and Hispanic (87%) populations are more likely than White individuals (80%) to view entrepreneurship as a good career choice.
- Black people had high rates of entrepreneurial intentions (24% vs 14% for Hispanic people and 12% for White people) and entrepreneurial activity (28% vs 20% and 17%).
- Black (90%) and Hispanic (87%) populations are more likely than White individuals (80%) to view entrepreneurship as a good career choice.
- Entrepreneurs choosing to lead with purpose
- In 2024, 60% of entrepreneurs and 47% of established business owners prioritized social and environmental impact above profitability, reversing a prior year's decline.
- A record 62% of entrepreneurs and 59% of business owners took steps to minimize environmental impact, while 59% and 50% focused on maximizing social impact.
- Entrepreneurs and business owners aged 18-34 are leading the charge, more likely to prioritize sustainability and take impactful actions than their older counterparts.
- In 2024, 60% of entrepreneurs and 47% of established business owners prioritized social and environmental impact above profitability, reversing a prior year's decline.
The full Global Entrepreneurship Monitor (GEM) 2024 report is available here.
About Babson College
Babson College is a global leader in entrepreneurship education. Through its proven Entrepreneurial Thought & Action® methodology, the College prepares entrepreneurial leaders who create, grow, and steward sustainable economic and social value around the world. Founded in 1917 in Wellesley, Massachusetts, Babson has empowered more than 45,000 entrepreneurial leaders to impact communities and industries of all kinds. Babson is recognized as the No. 2 best college in the United States by The Wall Street Journal and has maintained its place as No. 1 atop U.S. News & World Report's entrepreneurship rankings for decades. The College offers an array of undergraduate, graduate, and executive education programs and partners with organizations around the world to support global entrepreneurship initiatives. Through the Arthur M. Blank School for Entrepreneurial Leadership and Babson's centers and institutes, the College empowers accomplished and aspiring entrepreneurs to advance the study and practice of entrepreneurial thought leadership around the world.
Kate Chaney, Manager, External Communications
kchaney@babson.edu
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