By Miles Pennington, Senior Correspondent
The Global Entrepreneurship Monitor (GEM) 2024–2025 United States Report reveals a surge in entrepreneurial momentum as Total Entrepreneurial Activity (TEA) in the U.S. climbs to a historic high of 19%. This resurgence is largely driven by young adults, showcasing a generational shift towards innovation, autonomy, and self-started business ventures.
Despite economic headwinds, Americans—especially those aged 18 to 34—are increasingly launching new businesses, reflecting resilience and optimism in the face of uncertainty. The nation’s startup ecosystem is further supported by expanded access to capital, mentorship, and digital tools, making entrepreneurship more attainable than ever.
Young Adults Drive the Entrepreneurial Boom
Leading this wave of new ventures are Americans aged 18 to 24, who report the highest levels of entrepreneurial activity and intent. This demographic’s strong showing marks a notable shift from traditional employment to the pursuit of independent business endeavors.
More than ever, young people are rejecting conventional career paths in favor of building their own enterprises. Motivated by the promise of flexibility, purpose, and self-determination, they’re creating startups across tech, e-commerce, social impact, and other sectors.
This enthusiasm is not just ambition—it’s action. With digital platforms lowering the cost of entry and remote work normalizing business outside corporate structures, Gen Z and Millennials are making real strides toward business ownership.
A Response to Economic Uncertainty
The historic rise in TEA comes at a time of inflationary pressures, fluctuating job markets, and ongoing economic unpredictability. These conditions, rather than deterring entrepreneurial intent, seem to be catalyzing it.
Many aspiring business owners are motivated by necessity. The lack of traditional job opportunities, particularly among young and minority groups, is prompting more people to create their own employment solutions. In fact, a majority of nascent entrepreneurs cite job scarcity as a key driver behind their decision to launch a business.
This trend underscores the dual nature of entrepreneurship in America—it serves both as an economic engine and a personal safety net, offering autonomy and income when other paths are limited.
America’s Supportive Startup Landscape
The United States continues to offer one of the world’s most supportive environments for new businesses. Robust access to funding—from venture capital to crowdfunding—and an abundance of mentorship programs and startup incubators are key enablers of this entrepreneurial uptick.
Additionally, advancements in technology have made it easier than ever to start a business. Entrepreneurs now have tools for everything from e-commerce store creation to marketing automation and supply chain logistics—all of which can be managed from a smartphone or laptop.
The rise of online learning platforms and digital communities also means that aspiring founders can acquire critical skills and build networks without attending traditional business schools.
Diversity Adds Strength to Entrepreneurial Activity
Another compelling feature of this entrepreneurial surge is its diversity. Entrepreneurs now represent a broad spectrum of the American population, including women, immigrants, veterans, and individuals from historically underrepresented racial and ethnic groups.
This expanding inclusivity not only reflects shifting social dynamics but also injects fresh ideas and perspectives into the marketplace. Diverse founders often identify unmet needs and offer solutions tailored to niche or underserved communities, fueling innovation and broadening the impact of entrepreneurship on the wider economy.
Challenges in Sustaining Mature Businesses
Despite record-high startup activity, the number of mature businesses—those operating for more than three years—remains comparatively low. Only a small percentage of Americans run established ventures, signaling a potential challenge in sustaining long-term business growth.
The most common reasons for business closures include lack of profitability, funding shortfalls, and operational hurdles. These findings suggest that while launching a business is becoming more accessible, maintaining and scaling that business continues to present significant challenges.
Improving support for businesses beyond the startup phase—through policy changes, training programs, and continued investment—will be essential to converting high entrepreneurial activity into long-term economic growth.
A Promising Future for U.S. Innovation
The historic rise in Total Entrepreneurial Activity demonstrates that American innovation is alive and well. With young people leading the charge and digital tools democratizing access to business opportunities, the future of entrepreneurship looks bright.
However, to capitalize on this momentum, stakeholders—from government and educators to investors and community leaders—must ensure that today’s new ventures are positioned to grow, succeed, and contribute meaningfully to the economy.
As the entrepreneurial landscape evolves, the U.S. stands poised not just for recovery but for reinvention, driven by a generation eager to redefine success on its own terms.
