Global Entrepreneurship Monitor (Gem)-2002 Executive Report

Abstract

The 2002 Executive Report for the GlobalEntrepreneurship Monitor (GEM) estimates that more than 460 million adultsworldwide were engaged in entrepreneurial activity in 2002. This informationwas obtained from a survey of 37 countries that contain more than three-fifthsof the world population and 92 percent of the gross domestic product(GDP).This study aggregates the results of the 37 studies; individualreports for each country are also available. Three investigation methods are used in the series of national GEM studies:an adult population survey; interviews with entrepreneurship experts in eachcountry; and selected national and demographic data.The GEM modelexamines general framework conditions for economic growth and nineentrepreneurial framework conditions – financial support, government policy,government programs, education and training, research and development transfer,commercial and professional infrastructure, market openness, access to physicalinfrastructure and cultural and social norms. According to the findings, 286 million adults were active entrepreneurs in2002.The study provides information about: how the level ofentrepreneurship varies between countries; how the level of entrepreneurialactivity changes over time; why people become entrepreneurs; who theentrepreneurs are; what types of businesses are created; what the relationshipis between entrepreneurship and economic growth; how national experts assessthe entrepreneurial climate in their countries; and the importance of venturecapital and informal finance. Several conclusions and policy implications are drawn. It has been foundthat the national level of entrepreneurial activity reflects the generalmacroeconomic conditions; only 7 percent of startup efforts are likely toexpand the range of goods and services by creating new sectors or marketniches; and high potential new firms comprise a small proportion of startupactivity, being more prevalent in R&D-rich countries. National economicgrowth is associated with heightened levels of entrepreneurship; andentrepreneur-friendly cultural and social norms, government policies, andeducation and training are major strengths for most GEM countries. Womenparticipate in entrepreneurial activities at about half the rate of men; andinformal financial support for startups is five times that of domestic venturecapital support among the 37 GEM 2002 countries. Most of the businesses in theworld are either owned by a single family group or by an individual with strongfamily connections, and this is also true for startups.(CBS)

Keywords: Entrepreneurial activity, Industry sectors, Educational attainment, Business conditions, Early stage financing, Gender, Entrepreneurial environment, National differences, Startups, Public policies, Economic growth, Finance, Individual traits, Entrepreneurship education, Job creation, Males, R&D, Technology transfer, Angel investors, Age groups, Females, Venture capital, Policy analysis, Motivation, Demographics, Cultural attitudes, Family firms