Entrepreneurship is evolving. The latest insights from the Global Entrepreneurship Monitor (GEM) reveal three powerful trends poised to reshape what it means to be an entrepreneur by 2025. These trends are not just reshaping the business world—they are transforming society itself.
Here’s what the future holds:
Young Entrepreneurs Leading the Charge Toward Purpose-Driven Businesses
For decades, the face of entrepreneurship has been dominated by older, seasoned business leaders. However, the latest GEM report shows a significant shift. Young adults, especially those aged 18 to 24, are driving the entrepreneurial surge in the U.S. This age group now leads in both entrepreneurial activity and intentions, with 24% of young adults engaged in some form of entrepreneurial activity—higher than any other age group.
What sets these young entrepreneurs apart is their unwavering commitment to creating businesses with a purpose. They’re not just seeking profits; they’re focused on making a positive impact on society and the environment. Many are channeling their energy into sustainability-driven ventures, prioritizing ecological preservation, social justice, and community impact as core business goals.
This shift toward impact-driven entrepreneurship is more than just a trend — it’s a fundamental shift in business priorities. Young entrepreneurs are keen to build companies that tackle global challenges like climate change, poverty, and inequality. The GEM data underscores this, showing that these entrepreneurs are not only talking the talk but are actively building businesses that align with their values.
However, the path isn’t always smooth. While young entrepreneurs are starting businesses at higher rates, they also face a higher failure rate. The discontinuation rate for 18- to 24-year-olds is 15%, the highest of any age group. These challenges are mainly due to inexperience and limited access to capital. Still, the enthusiasm and resilience of this generation offer a beacon of hope for the future. With the right resources and support, this young cohort could drive profound, lasting change in the business world.
- Closing the Gender Gap in Tech Entrepreneurship
In another exciting development, the gender gap in technology entrepreneurship is narrowing. Traditionally, the tech industry has been overwhelmingly male-dominated, but the GEM report shows promising signs of change. In 2023, the difference between men and women starting businesses in the Information and Communication Technology (ICT) sector dropped to just 1%. Women now account for 8% of tech entrepreneurs, compared to 9% of men.
This represents a significant milestone, showing that women are increasingly entering the tech startup space. This narrowing of the gender gap highlights the progress made toward creating more inclusive environments for female entrepreneurs in tech. But while this development is encouraging, there’s still more work to be done. To ensure continued progress, it is vital to keep fostering environments where women — and other underrepresented groups — have equal opportunities to thrive in the tech world.
- A More Optimistic Future for Black and Hispanic Entrepreneurs
The GEM report also reveals a particularly bright future for Black and Hispanic entrepreneurs, who are showing higher levels of optimism and confidence in their entrepreneurial abilities compared to their white counterparts. These groups are not only more likely to start businesses, but they also exhibit lower levels of fear of failure, a crucial trait for entrepreneurial success.
Black entrepreneurs, in particular, demonstrate remarkable resilience and self-assurance, which are essential qualities for overcoming the unique barriers they face in starting and scaling businesses. This optimism is inspiring, especially given the systemic challenges many face in accessing capital, mentorship, and networks.
However, the report underscores that while the entrepreneurial spirit is alive and thriving within these communities, there is still much work to be done to ensure that entrepreneurial ecosystems provide equal opportunities for everyone, regardless of race or background.
A Glimpse into the Future of Entrepreneurship
The key insights from this year’s Global Entrepreneurship Monitor (GEM) report paint a picture of a dynamic and inclusive entrepreneurial future. The surge of young, sustainability-focused entrepreneurs marks a new era where business isn’t just about profit, but about creating meaningful change. These innovators are starting businesses at a pivotal moment, as the world seeks solutions to critical issues like climate change, poverty, and economic recovery. Young entrepreneurs, particularly those driven by sustainability, are rethinking the very purpose of business. The tech world is becoming more inclusive, with women leading the charge toward closing the gender gap. Meanwhile, Black and Hispanic entrepreneurs are displaying newfound confidence, resilience, and optimism.
The future of entrepreneurship is not just about creating profits; it’s about creating a better, more equitable world. But to realize this vision, there must be continued support for these groups of entrepreneurs, ensuring they have access to the necessary resources — from funding to mentorship — that will allow them to succeed and make a difference.
As we look ahead to 2025, one thing is clear: entrepreneurship is being reshaped by purpose, diversity, and innovation. With the right tools and opportunities, these new waves of entrepreneurs will not only drive economic growth but also create businesses that leave a lasting, positive impact on society. The entrepreneurial landscape is changing — and the future looks brighter than ever.
