Global Entrepreneurship Monitor (Gem) - 2005 Report on High-Expectation Entrepreneurship

The 2005 Global Entrepreneurship Monitor (GEM) reportfocuses on high-expectation entrepreneurship on a global scale.High-expectation entrepreneurial activity refers to entrepreneurial firms, bothnascent and new, that expect to achieve rapid growth in employment size. Data were collected from 44 countries from three sources: GEM's AdultPopulation Survey, the National Expert Survey, and secondary data to measurenational conditions. It was found that high-expectation entrepreneurialactivity makes up only a small proportion of all entrepreneurial activity,though it explains the majority of expected new jobs by cohorts of nascententrepreneurs and baby businesses. Also, the rate of high-expectationentrepreneurial activity varies significantly among world regions andindividual countries is dependent on national conditions and is least prevalentin Europe and Asia. Subgroups of the general population differ significantly with regard tohigh-expectation entrepreneurial activity. However, high household income, higheducation level, and opportunity motivation were found to be most stronglyassociated with high-growth expectations. Government policy must take an activerole in promoting high-expectation entrepreneurial activity through selectivesupport measures. (LKB)