Global Entrepreneurship Monitor 2009 Executive Report.

The Global Entrepreneurship Monitor (GEM) is the world’s leading research consortium dedicated to understanding the relationship between entrepreneurship and national economic development. For the past ten years GEM reports have been the only source of comparable data across a large variety of countries on attitudes toward entrepreneurship, start-up and established business activities, and aspirations of entrepreneurs for their businesses. Based on more than 180,000 interviews conducted between May and October in 54 countries, 2009 GEM data show that the global economic downturn reduced the number of people who thought there were good opportunities to start a business in many parts of the world. Not surprisingly, entrepreneurial activity declined in most GEM countries in 2009; however, about a third of the studied countries showed increased activity. A significant minority of would-be entrepreneurs in the wealthier countries saw the recession as increasing opportunities for their businesses. The proportion of necessity-driven entrepreneurs— people starting businesses because they felt they had no other choice—increased and attitudes towards entrepreneurship as a career choice improved in half of the wealthier countries in GEM. This 11th report in the GEM series focuses on the impact of the recession on entrepreneurship and the extent to which entrepreneurship can help reverse a downward economic trend. Also included are: 1) a special report on global perspectives of social entrepreneurship; 2) an analysis of the impact of the recession on funding to support new businesses; and 3) updates on entrepreneurial attitudes and perceptions, entrepreneurial activity, and entrepreneurial aspirations. The countries in this report are grouped into three stages of economic development as defined by the World Economic Forum’s Global Competitiveness Report: factor-driven, efficiency-driven and innovation-driven. This classification in phases of economic development is based on the level of GDP per capita and the extent to which countries are factordriven in terms of the shares of exports of primary goods in total exports. Factor-driven economies are primarily extractive in nature, while efficiency-driven economies exhibit scale-intensity as a major driver of development. At the innovation-driven stage of development, economies are characterized by their production of new and unique goods and services that are created via sophisticated, and often pioneering, methods. As countries develop economically, they tend to shift from one phase to the next