Global Entrepreneurship Monitor (Gem)-2002 Executive Report

Document Type

Article

Publication Date

2009

Abstract

The 2002 Executive Report for the GlobalEntrepreneurship Monitor (GEM) estimates that more than 460 million adults worldwide were engaged in entrepreneurial activity in 2002. This information was obtained from a survey of 37 countries that contain more than three-fifths of the world population and 92 percent of the gross domestic product(GDP).This study aggregates the results of the 37 studies; individual reports 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 each country; and selected national and demographic data.The GEM model examines general framework conditions for economic growth and nine entrepreneurial framework conditions – financial support, government policy, government programs, education and training, research and development transfer, commercial and professional infrastructure, market openness, access to physical infrastructure and cultural and social norms. According to the findings, 286 million adults were active entrepreneurs in2002.The study provides information about: how the level of entrepreneurship varies between countries; how the level of entrepreneurial activity changes over time; why people become entrepreneurs; who the entrepreneurs are; what types of businesses are created; what the relationship is between entrepreneurship and economic growth; how national experts assess the entrepreneurial climate in their countries; and the importance of venture capital and informal finance. Several conclusions and policy implications are drawn. It has been found that the national level of entrepreneurial activity reflects the general macroeconomic conditions; only 7 percent of startup efforts are likely to expand the range of goods and services by creating new sectors or market niches; and high potential new firms comprise a small proportion of startup activity, being more prevalent in R&D-rich countries. National economic growth is associated with heightened levels of entrepreneurship; and entrepreneur-friendly cultural and social norms, government policies, and education and training are major strengths for most GEM countries. Women participate in entrepreneurial activities at about half the rate of men; and informal financial support for startups is five times that of domestic venture capital support among the 37 GEM 2002 countries. Most of the businesses in the world are either owned by a single family group or by an individual with strong family connections, and this is also true for startups.(CBS)

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