ENTREPRENEURSHIPDATABASERADE, COMPETITION, A N DTRADE, COMPETITION, AND BUSINESS Frederic Meunier, Reem Hashad, and Laure Le GallPublic Disclosure Authorized ENTREPRENEURSHIPDATABASETTRADE, COMPETITION, AND BUSINESS Frederic Meunier, Reem Hashad, and Laure Le Gall © 2024 International Bank for Reconstruction and Development / The World Bank1818 H Street NWWashington DC 20433Telephone: 202-473-1000Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings,interpretations, and conclusions expressed in this work do not necessarily reflect the views of TheWorld Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data includedin this work and does not assume responsibility for any errors, omissions, or discrepancies in theinformation, or liability with respect to the use of or failure to use the information, methods, processes,or conclusions set forth. The boundaries, colors, denominations, links/footnotes and other informationshown in this work do not imply any judgment on the part of The World Bank concerning the legal statusof any territory or the endorsement or acceptance of such boundaries. The citation of works authoredby others does not mean the World Bank endorses the views expressed by those authors or the contentof their works. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of theprivileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination ofits knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as longas full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World BankPublications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail:pubrights@worldbank.org. Cover photo: Getty Image under Unsplash+ license. TABLEOF CONTENTS INTRODUCTION1(i) A Positive Relationship Between Entrepreneurial Activity and Income2(ii) An Uneven Regional Performance and the Power of Policy3(iii) Persistent Gender Disparities in Entrepreneurship4(iv) Policy Reforms that Impact Gender Trends5CONCLUSION7ANNEX. METHODOLOGY8 INTRODUCTION. The Entrepreneurship Database is a unique globalsource of cross-country data on the entry and exitof formal private enterprises. First published in2011, it compiles administrative information frombusiness registries worldwide and has been updatedeverytwo years since.The EntrepreneurshipDatabase grew in scope to cover more data points and more economies over time. The 8th edition ofthe Entrepreneurship Database contains aggregateannual data over the period of 2006-2024 and sexdisaggregated data over the period 2014-2024.The 8th edition covers 188 economies, out of which117 provide sex disaggregated data. TheEntrepreneurship Database has adopted adata collection methodology that seeks to provideastructured view of entrepreneurial activity.Tofacilitate cross-country comparability,theEntrepreneurshipDatabase employs consistentunits of measurement, sources of information, andconcept of entrepreneurship that is applicable andavailable across the diverse sample of participatingeconomies.It assembles a comparable globaldatasetthat allows analysis of entrepreneurialtrends across countries and time. (i) A Positive Relationship Between Entre-preneurial Activity and Income TheEntrepreneurship Database assembles acomparable global dataset that allows analysis ofentrepreneurial trends across countries and overtime. Findings from the 8th edition reveal a persistentdisparity: high-income economies have a tenfoldhigherbusiness density relative to low-incomeeconomies.In 2024,high-income economiescreated on average 7 new companies per 1,000adults, while low-income economies only created0.7 new companies per 1,000 adults (Figure 1). After fifteen years of operations, the Entrepreneur-ship Database has made it possible to identify sev-eral key trends. Furthermore, entrepreneurial density trends from2006 to 2022 reveal a widening gap betweenincome groups. Between 2006 and 2024, high-income economies recorded the largest rise innew business entry density – an increase of 1.9percentage points – followed by middle-incomeeconomies.In contrast,low-income economieshave maintained persistently low levels of newbusiness density relative to other income groups.Progress has been gradual: average density in low-income economies rose only from 0.2 to 0.7 newLLCs per 1,000 adults over the period. business density rose from 13.2 new limited liabilitycompanies per 1,000 adults in 2006 to 26.8 per1,000 adults in 2024 –which is the highest levelglobally. This sustained increase reflects a seriesof continuous