Young people are more entrepreneurial than adults: GEM Report

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Young people are more entrepreneurial than adults: GEM Report | tinobusiness
Young people are more entrepreneurial than adults: GEM Report | tinobusiness

“Young men are 1.3 times more likely than young women to create a company, and 1.6 times more to create a business that works.”

Has definitely proven that young people have a sharper than adults entrepreneurship. The new GEM report entitled “Future potential – GEM perspective on youth entrepreneurship in 2015” published by the Global Entrepreneurship Monitor (GEM) shows an entrepreneurial initiative much more pronounced in the age group 18 to 34 years in the following. The study, which analyzes five regions: sub-Saharan Africa, the Middle East and North Africa (MENA), Southeast Asia, Latin America and the Caribbean, and Western countries concludes that young people are 1.6 times more open to the idea of launching a new business than adults.

The report analyzed through these 5 geographic areas, data collected between 2012 and 2014 and has shown what motivates young entrepreneurs, as well as elements that may impact their achievements and failures.

The Director General of GEM, Mike Herrington explains why this report has decided to focus on young people: “the lack of employment opportunities, especially among young people, is a major problem in the world. The economic crisis and the difficult global economic climate has exacerbated this phenomenon. Today encouraging young people to be launched to develop entrepreneurship is seen as a strategic challenge needed to help them enter the labor market and exploit their potential to contribute to sustainable economic development. ”

The GEM report unreliable supplies and updating of data on entrepreneurship among young people, which represented a real obstacle to the development of these young entrepreneurs. The report provides an overview of the working methods of young entrepreneurs (in the range of 18-34 years), articulated according to three main variables: the inter generational differences, gender and geographic location.

 

The characteristics of young entrepreneurs

According to Thomas Schott, professor of Entrepreneurship and Relationship Management University of Southern Denmark and lead author of the report, young people from each of the study areas are clearly more active than adults but research shows that companies created by young people do not necessarily generate a large number of jobs (73% of businesses run by young people under 24 years only one person works). In addition, young entrepreneurs are less likely to run a business that can survive average over 3 years, and compared to adults over 34 who have 1.7 more chances of running a successful company.

Young men are 1.3 times more likely than young women to create a company, and 1.6 times more to create a business that works. They also have twice the chance of creating jobs for more than 5 people, contrary to businesses run by women.

This report also shows considerable differences as to the intentions of starting a business and real activity of entrepreneurship in the regions studied: youth in the sub-Saharan region are more likely to express the intention of starting a business (52%) and create really (28%), contrary to young people in the Western countries where only 19% want to be an entrepreneur, and only 8% carried out an entrepreneurial activity (measured by the percentage of adult population).

Thomas Schott shows that the message which we must mention the GEM report is that we must find the means for young companies are sustainable, and, depending on the context, identify and support high-potential sectors that create many jobs.

“We need to find ways to harness the motivation of young people who want to start their business but lack the skills and networks necessary to achieve it successfully.”

 

What could help or hinder young entrepreneurs?

Over the past sixteen years, GEM research have played a crucial role in advancing our understanding of entrepreneurial diversity throughout the world and in the identification of appropriate measures to encourage and support entrepreneurship strategies in different contexts.

One of the main findings is that there is a strong relationship between entrepreneurial behavior and global education and specialized in entrepreneurship training.

Research shows that in all geographic areas of the world, young people today are more likely to have access to education than their parents. In addition, specialized training in business management have doubled in a generation.

However, the report concludes that still have to implement many measures to create a favorable environment for young entrepreneurs, especially in regard to access to funding and infrastructures.

The data show that, with the exception of Western countries and some of the MENA region, the potential of the Internet as a marketing space is underused, as, for example, in the area of sub-Saharan Africa where only 16% of the Young sell products or services online.

Mike Herrington concluded: ” Implement policies and programs tailored business support, help concretize their projects to young people who accuse the current sluggish world economy. ยป

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