1. Global Entrepreneurship Monitor Characteristics of the Entrepreneur Maria Minniti Babson College London, January 20 2005

2. Global Entrepreneurship Monitor Characteristics of the Entrepreneur GEM estimates that about 73 million people are active entrepreneurs in the 34 nations that participated in the project in 2004 Who are these people and do they have anything in common? Age, gender, education, and work status are considered in relation to the GDP per capita of the GEM nations

3. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: AGE

4. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: AGE Different income groups have different levels of entrepreneurial activity across all age cohorts People between 25 and 34 years of age are the most active group regardless of the income of their country After the age of 35, all populations show a decline in entrepreneurial activity The relationship between age and entrepreneurship is stable over time

5. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: AGE The observed relationship and its stability suggest that age is important in the decision to become an entrepreneur Why does the age distribution matter? In the short-term, the demographic structure is important for the immediate level of entrepreneurial activity In the long-term, demographic trends may have a significant impact on the level of entrepreneurship

6. Global Entrepreneurship Monitor Characteristics of the entrepreneur: GENDER

7. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: GENDER In middle-income countries men are 75% more likely than women to be active entrepreneurs In high-income countries men are 33% more likely than women to be active entrepreneurs In low-income countries men are 41% more likely than women to be active entrepreneurs There are almost twice as many men who are active entrepreneurs than women

8. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: GENDER Gender differences are consistent across age groups and across most countries In no country are there more women who are active entrepreneurs than men, but there is wide variation between countries The gender gap is narrower for necessity entrepreneurship than for opportunity entrepreneurship

9. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: GENDER Why does the gender gap matter? A strong correlation exists between the emancipation and the working conditions of women and the well-being of a country Women represent more than half the world population and a very large amount of human capital with huge potential On March 8, 2005, the 1st GEM Report dedicated to Women and Entrepreneurship will be released

10. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: Education

11. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: Education The relationship between education and entrepreneurial activity is complex and very much country-specific About 30% of those who start a business have a secondary level education across all 3 income groups In high-income countries 57% of entrepreneurs have a post-secondary education while 13% have not completed a secondary education In low-income countries 23% of entrepreneurs have a post-secondary education while about 50% have not completed a secondary education

12. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: Education GEM results suggest that: more educated entrepreneurs pursue more opportunity-based ventures less educated entrepreneurs are involved out of necessity people who have a secondary level education tend to work for wages

13. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: Education How does education matter for entrepreneurial activity? High-income countries need to emphasize R&D, technology commercialization and scientific education Low-income countries need a strong commitment to education and training in order to reduce necessity entrepreneurships Middle-income countries need a strong commitment to entrepreneurial education in order to develop an environment more conducive to entrepreneurship

14. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: Work Status

15. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: Work Status The overwhelming majority of people starting businesses in all national income groups are currently working In middle-income countries 91% have jobs In high-income countries 81% have jobs In low-income countries 77% have jobs The percentage of people starting a business without being also employed is 6% in middle-income countries 17% in low income countries 5% in high-income countries

16. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: Work Status How does work status matter for entrepreneurial activity? No clear relationship exists between work status and entrepreneurial activity Unemployment and necessity entrepreneurship tend to be positively correlated Being employed elsewhere provides security and allows people to pursue opportunities

17. Global Entrepreneurship Monitor Characteristics of the Entrepreneur: Who is Involved in Entrepreneurship? Regardless of the level of income in their countries: 25- to 34-year-olds are the most active in entrepreneurship Women are less likely than men to start businesses Most people who start businesses work elsewhere In addition: In low-income countries, those with lower levels of education start businesses In high-income countries those with higher levels of education start businesses Unemployment and necessity entrepreneurship are highest in low-income countries