|GLOBAL ENTREPRENEURSHIP IS ON THE RISE|
Aruba, March 5, 2012 - The entrepreneurial bug appears to be spreading globally. According to the latest Global Entrepreneurship Monitor from Babson College, there are nearly 400 million active entrepreneurs around the world.
The study reviews entrepreneurship based on three standards: inclusiveness, industry and impact. The amount of opportunity entrepreneurs have, their gender, the industry they choose and how they affect their societies also help determine how successful entrepreneurial ventures might be.
"In an economy, you want to have some elements of stability, where firms maintain their businesses, despite facing ups and downs in their industry, their businesses or in the economy over time," Donna Kelley, Babson College professor and the study's author, explained. "At the same time, there needs to be some dynamism, where new ideas and new firms sprout up and replace in part those that have run their course."
Across different economies, potential entrepreneurs may interpret a certain degree of opportunity to start a new business. GEM's survey shows that even in places like Bangladesh, in which there is a high rate of perceived opportunity to start a business, many believe they do not have the capabilities or have a high fear of failure. Other economies in which potential entrepreneurs showed a high fear of failure or low capabilities included Japan, the Republic of Korea, Singapore and the United Arab Emirates. In light of the recent European economic downturn, survey participants in Greece, Hungary, Portugal and Spain all perceived very low levels of opportunity. Alternately, prospective entrepreneurs in the U.S. showed a moderate perception of opportunity, but great confidence in their abilities and a low fear of failure.