GEM 2023/2024 USA National Report

NATIONAL ENTREPRENEURSHIP ASSESSMENTFOR THE UNITED STATES OF AMERICA Contents Acknowledgments.......................................................................................................3List of figures and tables.............................................................................................4Foreword....................................................................................................................7Executive summary.....................................................................................................8Introduction: The United States economy in 2022–2023................................. 12CHAPTER 1: Entrepreneurial activity and business phases................................ 22CHAPTER 2: Entrepreneurial impact....................................................... 32CHAPTER 3: Societal attitudes toward and perceptions of entrepreneurship.............. 42CHAPTER 4: Gender in entrepreneurship................................................... 48CHAPTER 5: Race and ethnicity characteristics of entrepreneurs......................... 62CHAPTER 6: Social and environmental sustainability...................................... 72Conclusions.................................................................................. 88 Acknowledgments The authors are especially grateful to the following people who have contributed their time and support tomake this report possible: » Stephen Spinelli Jr., MBA’92, PhD, President of Babson College» Ginny Caggiano, Founder/Principal, Crackerjack Communications» Kate Chaney, Manager, External Communications, Babson College» Clare Currie, Program Manager, Arthur M. Blank Center for Entrepreneurship, Babson College» Victoria Dalton, Marketing Manager, Babson College» Nicole Dassau, Senior Project Manager, Crackerjack Communications» Francis Ma, Director of Content Strategy, Babson College» Kathryn Mariano, Design Lead, Crackerjack Communications» Cindy Klein Marmer, Interim Executive Director, Arthur M. Blank Center for Entrepreneurship, Babson College» Matt Mayerchak, Mayerchak & Co., LLC» Danielle Perry, AVP of Communications and Marketing Strategy, Babson College» Cheryl Robock, Creative Management, Babson College» Kerry Salerno, Vice President & Chief Marketing Officer, Babson College» Aileen lonescu-Somers, GEM Executive Director» Kevin Anselmo, GEM Marketing Director» The GEM Global Data Team» GERA Board› Jeffrey Shay (Chair)› José Ernesto Amorós› Ana Fernandez Laviada› Christian Friedl› Anna Tarnawa› Niels Bosma (Non-Voting Member) This report would not be possible without the Consortium of GEM National Teams who participated in the 2023GEM Global survey: Argentina*, Brazil, Canada, Chile, China, Colombia, Croatia, Cyprus, Ecuador, Estonia, France,Germany, Greece, Guatemala, Hungary, India, Iran, Israel, Italy, Japan*, Jordan, Latvia, Lithuania, Luxembourg,Mexico, Morocco, Netherlands, Norway, Oman, Panama, Poland, Puerto Rico, Qatar, Republic of Korea, Romania,Saudi Arabia, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Thailand, Ukraine, UnitedArab Emirates*, United Kingdom, United States, Uruguay, Venezuela. Unless otherwise noted, GEM data were used in the preparation of this report.The interpretation and use are the sole responsibility of the authors. » Candida G. Brush» Andrew C. Corbett» Caroline Daniels» Donna J. Kelley» Mahdi Majbouri» Jeffrey Shay List of figures and tables Figure 1:Percentage change in real GDP from the preceding quarter (seasonally adjusted annual rates)......................................................... 14Figure 2:Inflation rates (year-on-year change in CPI, PCEPI, and core PCEPI)..................................................................... 15Figure 3:Federal funds rate, 2015–2023........................................................................................................... 16Figure 4:National unemployment rate and total non-farm private employment, 2015–2023..................................................... 17Figure 5:University of Michigan Consumer Sentiment Index and real personal consumption expenditure, 2015–2023......................... 17Figure 6:The GEM Conceptual Framework.......................................................................................................... 18Table 1:NES 2021–2023 ratings of entrepreneurial conditions.................................................................................... 20Figure 7:The entrepreneurship process and GEM indicators....................................................................................... 20Figure 8:Phases of business activity in the adult population of the United States, 2016–2023 (percentage of population aged 18–64)...... 24Figure 9:TEA and EBO rates in the adult population of 15 high-income countries, 2023 (percentage of population aged 18–64).............. 25Figure 10:Breakdown of TEA by nascent and new phases, 2016–2023...........................