What is GenM

Global Entrepreneurship Monitor (GEM)

What is the Global Entrepreneurship Monitor?

The Global Entrepreneurship Monitor is the only data source worldwide that enables a spatial and temporal comparison of the start-up rates in many countries on all continents. Since 1999 in over 50 countries annually Data on start-up activity and start-up attitude raised. As part of the Global Entrepreneurship Monitor, start-ups in Germany are monitored by the RKW competence center in cooperation with Leibniz University Hannover examined.

What are the goals of the Global Entrepreneurship Monitor?

The Global Entrepreneurship Monitor enables international comparisons as well as country-specific evaluations, as well as start-ups in Germany. The project primarily pursues three goals:

  • Measurement of the differences in the scope of start-up activities between the participating countries

  • Identification of start-up-relevant factors influencing the start-up ecosystem

  • Development of recommendations for action for the start-up promotion policy with the aim of increasing the number of start-ups.

How is the data from the Global Entrepreneurship Monitor collected?

The data in the Global Entrepreneurship Monitor is based on two annual surveys. The Adult Population Survey (APS), a quantitative and representative population survey carried out by telephone in most countries, aims to quantify start-up activities and attitudes. The National Expert Survey (NES), a survey of start-up experts carried out online in Germany with various focal points, evaluates the start-up-related framework conditions for the respective country.

Which start-up groups are examined in the Global Entrepreneurship Monitor?

The Global Entrepreneurship Monitor maps the entire start-up process and examines founders in the pre-founding phase, so-called future founders (Nascent), founders of young companies and established founders in their respective phases. The start-up activities of the Nascents and Young Entrepreneurs form the Global Entrepreneurship Monitor -specific start-up rate "Total early-stage entrepreneurial activity" (TEA).

What are the main results of the current Global Entrepreneurship Monitor 2019/2020?

Increase in the start-up rate

Total early-stage entrepreneurial activity (TEA) in Germany reached a new high of 7.6% in 2019. This value is the highest that has been determined 20 years ago since the data series of the Global Entrepreneurship Monitor began. In comparison, the start-up rate was 5.0% in 2018, which is significantly lower. The start-up rate is defined as the proportion of those 18 to 64-year-olds who have founded a company and / or are in the process of starting a company in the past 3.5 years. The TEA rates for men (9.5%) and women (5.7%) are also higher than ever before since 1999. Here you can download the infographic on business start-ups in Germany.

Young founders predominate

For the second year in a row since the start of the data series in 1999, the highest TEA rate was found in the 25 to 34-year-old age group with 11.8% and in the 18 to 24-year-old age group with 10.1%. Compared to the younger age groups mentioned, the middle cohorts fell slightly in 2019. This is particularly noticeable in the group of 35 to 44 year olds (TEA rate 7.3%), which in many earlier years was the most start-up age group in Germany. The TEA rate of the two young age groups is two and a half times as high as that of the 55 to 64 year olds. You can download the infographic on start-up skills here (see page 2).

Migrants start a business more often

The TEA rate of migrants in Germany is again in 2019, at 11.8%, significantly higher than that of the local population (TEA rate 7.4%). Since they were recorded in the Global Entrepreneurship Monitor - Country Report, migrants have always founded Germany more frequently than local people, the only exception being 2018. You can download the infographic on migrant founders here.

Which products does the RKW Competence Center offer for the Global Entrepreneurship Monitor?

With the annual Global Entrepreneurship Monitor, the start-up department at the RKW Competence Center shows how start-up activities and framework conditions in Germany compare across the world. The RKW competence center offers the following products:

Global Entrepreneurship Monitor - Fact Sheet

With the Fact sheet we show a selected relevant topic in a short form using the Global Entrepreneurship Monitor data. You will learn to what extent entrepreneurship skills have an impact in practice and to what extent they influence the way of thinking and acting of potential founders and young companies. The fact sheet is available for free download here.

Further data evaluations

The annual Global Entrepreneurship Monitor - Country Report Germany  contains only a selection of the possible evaluations of the variables surveyed. On request, we will be happy to prepare in cooperation with our partners further data evaluations that target your individual questions. Inquire here without obligation.

Lectures on start-up activities in Germany

We are happy to assist you for your seminars, lectures and events Lectures on start-ups in Germany in an international comparison and in the historical development. Inquire here without obligation.

Photo credits: Young businesswoman works at desk © 123RF / langstrup - 190514-rkw-bkw-ls-050.jpg: © BILDKRAFTWERK / Laurin Schmidt - red-haired woman iPad © iStock.com / PeopleImages - stairs three colleagues © iStock.com / PeopleImages - woman and Man with iPad © iStock.com / PeopleImages - Header_Website_1460_360_gruendung.jpg: © iStock.com / RomoloTavani

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