An academic study released recently challenges the common perception that Western economies, particularly those in Europe and North America, are the most conducive environments for starting businesses. Instead, the study conducted by the Global Entrepreneurship Monitor (GEM) reveals that the United Arab Emirates (UAE) has maintained its position as the top destination for entrepreneurship for the third consecutive year, followed closely by India in second place. Surprisingly, countries like France, the US, Germany, and the UK, often considered as the usual leaders in business, rank lower, with positions ranging from 12th to 22nd.
The GEM study evaluates various entrepreneurial conditions across 49 participating countries, ranging from government policies to infrastructure and cultural attitudes. Dr. Sreevas Sahasranamam, a co-author of the report representing GEM UK, notes a noticeable eastward shift in entrepreneurship ecosystems over the past five years, in tandem with the changing economic center of gravity globally.
Exploring the reasons behind this shift, Dr. Sahasranamam points to factors such as increased government support for business creation, emphasis on entrepreneurship education, and evolving cultural perceptions of business activities. In India, initiatives like the New Education Policy and programs like the Atal Tinkering Lab are fostering innovation and entrepreneurial skills among students. Similarly, the UAE prioritizes fields like computer science, blockchain technology, and artificial intelligence through specialized programs.
Conversely, Western economies have experienced a decline in their attractiveness for business, possibly due to economic challenges following the pandemic. However, they excel in business services, with over 30 percent of entrepreneurs engaged in this sector. This is in contrast to Eastern nations, where entrepreneurial activity predominantly focuses on consumer services like retail and hospitality.
Recognizing the importance of entrepreneurship education globally, the study highlights a concerning trend where it remains a weak aspect in many countries, hindering the potential growth of new businesses. Dr. Sahasranamam stresses the need for greater emphasis on entrepreneurship education to ensure that future generations are aware of business opportunities and equipped with the necessary skills to pursue them.
