Nearly half of the world’s entrepreneurs are between the ages of 25 and 44. The survey also reports that, in all geographic regions surveyed, 25-34 year olds showed the highest rates of entrepreneurial activity, according to a Babson College report.
“Although most of the entrepreneurs tend to fall into the early to mid-career age ranges, we see people participating in entrepreneurship at all ages,” commented Donna Kelley, co-author of the report and Associate Professor of Entrepreneurship at Babson College.
“Encouragingly, in every part of the world, youth are starting businesses as well as those in their late careers. Given this broad spectrum of participation, some economies may be well-served by looking more closely at certain age groups in order to determine how to encourage and support entrepreneurial activity.
European entrepreneurs are younger
“Whether it be educated youth in a society unable to find jobs to apply their skills, mid-career workers suddenly unemployed, retirees wanting or needing to continue earning income, or individuals of any age that recognize opportunities and have the desire to be entrepreneurs, people have particular strengths they can leverage at various points in their careers, but they are likely to need different training and resources to effectively engage in entrepreneurial pursuits.”
The Latin America/Caribbean and sub-Saharan African regions tend toward older entrepreneurs, with one-third falling into the 45-64 age range.
In Europe, on the other hand, the non-EU economies report, on average, that half of the entrepreneurs are between 18-34 years of age. China was also distinct in claiming a high proportion of young entrepreneurs, with 57 percent between 18 and 34 years of age.
Unveiled today at the GEM Annual Meeting in Kuala Lumpur, Malaysia, this is the 14th annual survey of entrepreneurship worldwide and is the largest single study of its kind.
In the late spring and early summer of 2012, more than 198,000 adults in 69 economies took part in the GEM survey. With the largest sample to date, this group of economies represented an estimated 74 percent of the world’s population and 87 percent of the GDP.
The GEM 2012 Global Report also looked at cultural attitudes about entrepreneurship. Perceptions about entrepreneurial opportunities, capabilities, fear of failure, and intent to start a business are key predictors of entrepreneurial activity around the world. “We are finding that entrepreneurship education and media attention about entrepreneurs may have a lasting effect on cultural attitudes about entrepreneurship,” Kelley stated.
With 12.3 percent of the U.S. adult population engaged in entrepreneurial activity, the U.S. experienced a 60+ percent increase in total entrepreneurial activity (TEA) from 2010 to 2011, matching the TEA level recorded in 2005.
The dramatic increase follows significant drops reported in both 2009 and 2010. Further, the U.S. reported the highest total entrepreneurial activity level among developed economies globally.
According to the Report, more than 29 million U.S. adults (18-64 years old) were running or starting new businesses in 2011. Moreover, nearly 40% of these entrepreneurs expected to create more than five new jobs in the next five years.
Unprecedented jump in entrepreneurial activity
“We saw an unprecedented jump in entrepreneurial activity in 2011,” commented the GEM Report’s lead author, Donna J. Kelley, Associate Professor of Entrepreneurship at Babson College.
“Most of these entrepreneurs were in the process of just getting started, which means a lot of people took the leap into entrepreneurship during 2011.
In addition, compared with 2010, more people reported that they were intending to start businesses in the next three years, showing a more positive future outlook for entrepreneurship in the United States after two years of declining indicators.”
“Importantly, necessity-based entrepreneurship accounted for a lower proportion of entrepreneurial activity in 2011,” continued Kelley. “In the depths of the recession, we saw a tremendous increase in people starting businesses out of necessity.
In 2011, the entrepreneurship rate was pulled up primarily by those starting businesses to pursue promising opportunities–a strong sign of entrepreneurial activity occurring as a result of optimism, not desperation.”
An encouraging 39 percent of entrepreneurial ventures are expecting to add more than five employees over five years, indicating the potential for significant job creation and restored confidence in the United States’ economic recovery.
Nascent entrepreneurship on the rise
For the first time since the crash in 2008, nascent entrepreneurship is on the rise. In fact, the percentage of nascent entrepreneurship nearly doubled from 2010 to 2011 (8.4 percent in 2011 up from 4.8 percent in 2010). Entrepreneurial intentions also increased by over 30 percent in 2011 after holding steady from 2008 to 2010 (10.9 percent in 2011 compared to 8.3 percent in 2010.)
Increase in established business owners
2011 saw a rebounding in the number of established business owners with a 17 percent increase over 2010. The U.S. rate of established business owners (9 percent) was above-average compared to other developed economies studied by GEM.
Gender gap is closing
There continue to be fewer women entrepreneurs than men entrepreneurs, though the U.S. female/male ratio among entrepreneurs is higher than the global average. In 2011, there were approximately eight women entrepreneurs to every 10 men entrepreneurs.
Blacks are twice as likely as whites to become entrepreneurs (19.3 percent to 9.7 percent, respectively.)
Younger adults (18-24 years old) are more likely to start a business, but 10 percent of adults 55-64 years of age, and 4.5 percent over the age of 65, also intend to start businesses. Male youth have a higher perception about opportunities, while female youth are more discouraged by fear of failure.
Education shapes entrepreneurs
There is a strong relationship between entrepreneurship activity and levels of education. College graduates were over twice as likely to choose entrepreneurship (15 percent) than those with no high school education (7 percent), and almost 50 percent more likely than high school graduates.
Low fear factor
Among developed economies, U.S. entrepreneurs exhibited the lowest rates of fear of failure in the developed world, along with Switzerland and Slovenia. Less than one-third of U.S. adults (18-64) were dissuaded by fear of failure. At the same time, perceived capabilities in the U.S. were among the highest within innovation-driven economies. Over 55 percent of adults believed they had the skills and ability to start a business.
Wealth and the impact of financial means
Entrepreneurs have wealthier households than non-entrepreneurs. GEM data indicates that more affluent households more often lead to entrepreneurship.
Majority of U.S. entrepreneurs’ revenues are based on domestic sales
Only 13 percent of U.S. entrepreneurs report more than 25 percent of their revenues coming from international sales; the lowest level among innovation-driven economies.
“The United States, for all its image as a global economy, has only an average level of internationally-oriented entrepreneurs for its development level,” comments Abdul Ali, Associate Professor of Entrepreneurship at Babson, and a coauthor on the Report.
“As many developing regions of the world are quickly becoming innovators, these entrepreneurs will need to maintain their global competitiveness and they are most likely to do so by engaging with international markets.”
The Princeton Review and Entrepreneur magazine have disclosed the results of the Princeton Review’s annual survey that names the schools with the top 25 undergraduate and top 25 graduate entrepreneurship programs in the nation.
From more than 2,000 schools reviewed, Babson College in Massachusetts captured the #1 spot on both the undergraduate and graduate entrepreneurship program ranking lists this year. Babson has been #1 on the graduate list for four consecutive years and was #2 on the undergraduate list in 2011.
Coming in #2 on the undergraduate entrepreneurship program list this year is Baylor University, while the University of Houston is #3. In the graduate program category, ranking #2 this year is the University of Michigan while Brigham Young University (UT) is #3.
Eight schools new to the list
This year’s rankings include eight schools new to the lists. On the undergraduate list, they are the University of North Carolina at Chapel Hill (#9), Clarkson University (#15) and Lehigh University (#24).
Five schools new to the graduate list include: University of Utah (#15), Cornell University (#16), University of Louisville (#20), Columbia University (#23) and University of Oklahoma (#25). (Complete lists follow.)
A feature on the rankings is now posted on Entrepreneur‘s website at www.entrepreneur.com/topcolleges and it will appear inEntrepreneur‘s October issue, available on newsstands tomorrow, September 25.
The Princeton Review today posted the ranking lists at www.princetonreview.com/entrepreneur. There users can also access information about criteria for the rankings and topics asked in the 60-question survey for this project.
The Princeton Review conducted its surveys of school administrators from April through June 2012. The wide range of data the education services company used to evaluate the programs and tally the rankings included: the schools’ levels of commitment to entrepreneurship inside and outside the classroom, the percentage of their faculty, students, and alumni actively and successfully involved in entrepreneurial endeavors and the number and reach of their mentorship programs.
The company also considered their funding for scholarships and grants for entrepreneurial studies and projects, and their support for school-sponsored business plan competitions.
More than 2,000 text and multimedia definitions of the word entrepreneurship have been posted and shared through the hub, including those submitted by Boston Mayor Thomas M. Menino, iconic footwear designer Ruthie Davis, Apple evangelist and Garage.com founder, Guy Kawasaki, President and CEO of the Nike Foundation, Maria Eitel, and former U.S. Department of State advisor Steven Koltai.
Outside of the U.S., the countries with the greatest visitors include India, the United Kingdom, the Philippines, Mexico, Canada, Bulgaria, Brazil,Germany, Chile and China.
More than 2,000 definitions posted to date
Launched by Babson College in January 2012, the campaign is helping to extend the definition of entrepreneurship in order to help shape how the world views and values entrepreneurs of all kinds. Through define.babson.edu, the community-at-large can post and share their definitions and access information about the entrepreneurial experience.
With more than 2,000 definitions posted to date, it’s clear there is no limit to the ways entrepreneurship can be defined,” said Babson’s chief marketing officer, Sarah L. Sykora.
“The word ‘entrepreneurship’ means much more than just starting a business. Entrepreneurial Thought and Action® is being applied in many contexts, from large corporations to social causes, and by people of all ages, ethnicities and socio-economic backgrounds.
The overwhelming response signals to us that, regardless of the words they use to define it, people recognize entrepreneurship as a powerful force for solving the economic, social and environmental issues confronting our world.”
The definition of the week on the Babson site is from Raphel (Undergraduate Student, Kailua, HI):
“Identifying solutions to create economic or social value, and creativly pursuing those opportunities.”
One we liked particularly was from Taylor, an undergraduate student from Harkness, NY. He said it is ”Entrpreneurship is seeing the painting on a blank canvas; creating something out of nothing, in the simple hope that it will bring change for the good of humanity.”
One we see as especially accurate is from Madhukarreddy, a first generation entrepreneur from India, who wrote, “Entrepreneurship is imagining unmet need and inspried to fulfil that need.” We have profiled hundreds of startups, and the ones that saw a legitimate business need and came up with a solution have by far been the most successful.
As Babson continues to crowd-source definitions, the College also will begin incorporating select definitions into its fully integrated branding campaign, which includes print, digital, outdoor and radio components. The campaign was conceptualized and executed in partnership with Connelly Partners, a leading full service advertising agency in Boston.
Atlanta-based SocialVest, which provides a platform that lets shoppers earn cash back rewards from retail purchases that they can then donate to non-profit organizations, has raised more than $1 million in its Series A round led by Westport, Connecticut-based Bluff Point Associates. The company raised $500,000 in September.
“SocialVest is capitalizing on the intersection of three extraordinarily powerful forces: shopping, consumer consciousness and social media,” said Adam Ross, founder and CEO . “Our goal is to create a new paradigm for retail that enables consumers to spend as they would, while simultaneously supporting their favorite causes and motivating their friends to join them. We think the notion of shopping-based ‘social giving’ is going to be extremely popular.”
“Social giving is a fast-growing, incredibly important industry, and SocialVest is the leader,” said Bluff Point Associates Managing Director, Neil Gabriele who will join the SocialVest board of directors.
Shoeboxed nabs $1.43M for digitally organizing receipts, bills, business cards
The company’s investors include Bethesda, MD-based Novak Biddle Venture Partners. Shoeboxed was a demo company at TechMedia’s Internet Summit in 2009. The next Internet Summit is in November in Raleigh, NC.
MA-based bargain travel site TripAlertz lands $2.2M
Trip Alertz, a Chestnut Hill, MA-based members-only travel site that offers travel bargains, has raised $2.2 million of a targeted $3.7 million offering, according to a regulatory filing.
The company’s executive Chairman, Mark Donohue, a partner at Entrepreneurship Advisors is an entrepreneur in residence at Babson College. He also founded cleantech venture firm Expansion Capital Partners in 2001, which manages more than $100 million.