The Global Entrepreneurship Monitor (GEM) has released its annual report on June 23, 2025, showing a remarkable surge in entrepreneurial activity across the United States. The report highlights that Total Entrepreneurial Activity (TEA) has surged to 19%, marking a historic high and indicating a revitalization of the U.S. entrepreneurial ecosystem. This is a sharp increase from the previous year and suggests that the American entrepreneurial spirit is once again flourishing after a period of economic uncertainty.
The GEM 2024–2025 U.S. report offers a comprehensive look into the state of entrepreneurship in the country, revealing key trends, challenges, and opportunities for new businesses. This article explores the findings of the GEM report, the factors driving this surge in entrepreneurial activity, and the implications for the future of business in the United States.
Key Findings from the GEM 2024–2025 U.S. Report
The GEM report is widely regarded as one of the most comprehensive global surveys of entrepreneurship. The 2024–2025 U.S. edition highlights the following key findings:
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Surge in Young Entrepreneurs: The TEA rate among young adults (18-34 years) has increased significantly, with this demographic now accounting for 35% of all new businesses. These young entrepreneurs are particularly active in technology, e-commerce, and sustainability-driven sectors.
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Diverse Entrepreneurial Landscape: There is also a notable rise in entrepreneurs of color, with Hispanic, Black, and Asian entrepreneurs showing greater activity compared to previous years. This shift reflects a growing sense of opportunity among underrepresented groups and an increasing recognition of the importance of diversity in entrepreneurship.
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High Rate of Innovation: Many entrepreneurs are pursuing innovative business models, particularly in the fields of digital marketing, AI, and healthtech. These startups are often focused on disrupting established industries with cutting-edge technologies and customer-centric solutions.
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Post-Pandemic Resurgence: After the challenges of the COVID-19 pandemic, many Americans have turned to entrepreneurship as a means of economic empowerment. The report suggests that recession-proof businesses, particularly those in online services and essential goods, have seen a sharp rise.
Factors Driving Entrepreneurial Growth in the U.S.
Several key factors are contributing to the resurgence of entrepreneurial activity in the United States:
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Access to Capital and Resources: The availability of venture capital and angel investors has significantly increased, providing the financial backing that many new businesses need to scale. Additionally, government-backed programs, such as Small Business Administration (SBA) loans, have made it easier for entrepreneurs to access funding.
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Technological Advancements: The continued growth of AI, cloud computing, and e-commerce platforms has made it easier for entrepreneurs to launch businesses with lower initial capital. Startups can leverage these technologies to scale quickly and reach a global market.
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Shifting Workforce Preferences: The rise of remote work and digital nomadism has given rise to new business models. Many entrepreneurs are capitalizing on the increasing demand for online services, digital products, and virtual experiences, especially in the wake of the pandemic.
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Cultural Shifts Toward Entrepreneurship: There’s a growing societal emphasis on entrepreneurship as a viable career path. The rise of entrepreneurial education, networking events, and mentoring opportunities has helped create a culture where new business creation is celebrated.
Challenges Facing U.S. Entrepreneurs
While the surge in entrepreneurial activity is encouraging, there are several challenges facing new business owners:
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Access to Talent: As competition for skilled labor intensifies, many entrepreneurs are finding it difficult to recruit the right talent. This is particularly challenging in industries like technology and healthcare, where specialized skills are in high demand.
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Regulatory Barriers: Entrepreneurs in certain sectors are encountering regulatory hurdles, particularly in industries like fintech and healthtech. Navigating the complex web of federal, state, and local regulations remains a significant challenge.
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Economic Uncertainty: While the U.S. economy has shown resilience, inflation and supply chain disruptions continue to affect entrepreneurs. Many businesses face rising costs for raw materials, labor, and shipping.
Conclusion: The Future of Entrepreneurship in the U.S.
The GEM report signals a positive outlook for entrepreneurship in the United States. With a vibrant and increasingly diverse entrepreneurial ecosystem, the country is poised to continue leading the world in innovation and business creation. As new technologies, access to capital, and a supportive business environment continue to evolve, the entrepreneurial landscape in the U.S. will likely remain a cornerstone of economic growth and job creation for years to come.
