Around the world, the number of people deterred from starting a business because of fear it might fail is increasing, according to the Global Entrepreneurship Monitor (GEM) 2024/2025 Global Report titled Entrepreneurship Reality Check, released today at a special event to launch the report in Bilbao, Spain. Those who take the leap are uncertain about the expected role of artificial intelligence in their businesses.

Professor Sreevas Sahasranamam, of the University of Glasgow’s Adam Smith Business School, a co-author of the global report and co-lead of GEM UK said:. The 12 GEM researchers located in nine countries collectively agree that it is important to develop robust support systems, including financial assistance, accessible training, mentorship programmes and simplified regulations to reduce the risks of starting a business and address fear of failure, enabling more entrepreneurs to thrive.

More than 150,000 people participated in the GEM Adult Population Survey (APS) in both 2019 (pre-pandemic) and 2024, across 50 and 51 economies respectively. In 2019, 44% of those surveyed agreed that they would not start a business for fear it might fail; by 2024 this proportion had increased to 49%.

In both years, a significant percentage of the 150,000 plus people agreed they saw good opportunities to start a business. Amongst these individuals, those that stated they would not actually start a business to leverage those same opportunities for fear it might fail increased from 42% in 2019 to 47% in 2024.

Between 2019 to 2024, the number of economies in which at least two in five people seeing good opportunities, yet would not start a business for fear it might fail increased markedly from 34 out of 50 (68%) to 43 out of 51 (84%).

Worldwide, there is considerable lack of awareness and uncertainty about how important artificial intelligence (AI) will become to new businesses in the next three years. Survey responses include high rates of “don’t know”. Of those who did answer, in 36 of 49 economies (73%), fewer than three in 10 of those starting new businesses see AI as “very important” in the next three years.

Professor Sreevas Sahasranamam said: "It is real cause for concern to see this inequality in the awareness of AI impact on entrepreneurs across economies, which is skewed unfavourably towards the Global South entrepreneurs. It is important that we launch awareness campaigns and training programmes to educate entrepreneurs about the importance and potential of AI.”

GEM is currently celebrating its 25th Silver Anniversary as the world’s foremost study of entrepreneurship. GEM published its first Global Report in 1999. Since then, its research has shaped conversations among policymakers, academics, entrepreneurs and international organisations. This impact is driven by GEM’s National Teams, who secure expertise and funding to collect national-level data.

“Entrepreneurship is a key driver of prosperity and innovation, and GEM’s long-standing research has been instrumental in tracking its impact,” said GEM Executive Director Aileen Ionescu-Somers. “By gathering first-hand insights directly from the entrepreneurs themselves, GEM offers a unique perspective on how new businesses shape economies, tackle global challenges and invest in a sustainable future.”

First published: 18 February 2025

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