The Impact on Society of the Missing Entrepreneurs

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“The Missing Entrepreneurs 2023” is an OECD report that comprehensively explores how government policies can unlock the untapped potential of under-represented groups in entrepreneurship. Focusing on demographics such as women, youth, seniors, the unemployed, immigrants, and people with disabilities, it provides comparative data on their entrepreneurship activities and the barriers they face across OECD and European Union countries. Additionally, the report examines the effectiveness of youth entrepreneurship schemes and welfare bridge schemes for job seekers looking to start businesses. It also includes country profiles for each of the 27 EU Member States, offering insights into recent trends in diversity in entrepreneurship and the evolving policy landscape for each country.

At Edventures, we believe in the power of entrepreneurship to empower individuals and drive positive change. On our mission to revolutionise entrepreneurship education and support, the findings of “The Missing Entrepreneurs 2023” report resonate deeply with our ethos and mission. By understanding the barriers faced by diverse groups and the effectiveness of policy interventions, we can tailor our approach to ensure inclusivity and accessibility for all aspiring entrepreneurs.

In this blog post, we delve into the key insights from the report, highlighting the pivotal role of inclusive entrepreneurship in shaping a more vibrant and equitable society. Join us as we hightlight the transformative potential of entrepreneurship and the actionable steps we can take to bridge the gap, unlocking opportunities for all and creating a more equitable society.

The Changing Face of Entrepreneurship

In the European Union (EU) and OECD, entrepreneurship is emerging as a transformative force, reshaping economies and societies. However, amidst this wave of change, a crucial segment of potential entrepreneurs remains untapped, leaving a gap in our collective prosperity and growth.

The essence of entrepreneurship lies not only in its economic impact on individuals, but also in its ability to reflect the diversity of our societies. Over the past decade, we’ve witnessed a remarkable shift in the profile of entrepreneurs, with immigrant entrepreneurship taking center stage. Across the EU, the surge in immigrant-owned businesses underscores their significant contributions to employment and economic growth.

Addressing Gender Disparities

Similarly, efforts have been made in narrowing gender gaps in entrepreneurship, albeit slowly. Despite facing disproportionate challenges during the COVID-19 pandemic, women entrepreneurs have demonstrated resilience, with their numbers bouncing back to pre-pandemic levels. Yet, a persistent gender disparity lingers, particularly in the realm of growth-oriented businesses, which presents an untapped potential of female entrepreneurs and a missed opportunity for inclusive economic growth.

The statistics paint a stark reality: millions of entrepreneurs are “missing” from the entrepreneurial landscape. If everyone were as active in business creation as 3the most active group, 30-49 year old men, the EU would see an additional 7.5 million entrepreneurs, and the OECD, a staggering 34.1 million more entrepreneurs. These “missing” entrepreneurs represent a diverse array of talents and ideas, waiting to be unleashed.

“…the EU would see an additional 7.5 million entrepreneurs, and the OECD, a staggering 34.1 million more entrepreneurs.”

Tackling the Challenge Head-On

The challenge of unlocking this dormant potential is not merely economic but also gender and age-specific. The vast majority of “missing” entrepreneurs are women, reflecting systemic barriers and social attitudes that perpetuate gender inequalities in entrepreneurship. We know from before that, among youths, fewer women than men engage in entrepreneurial activites. The cost of these disparities is substantial, with estimates suggesting that closing the gender gap in entrepreneurship could boost GDP growth significantly.

To address this challenge, governments and stakeholders must adopt comprehensive strategies that dismantle barriers and foster an inclusive entrepreneurial ecosystem. Initiatives like Germany’s action plan for “More female entrepreneurs for small and medium-sized enterprises” exemplify the collaborative efforts needed to drive change. By engaging with diverse stakeholders and aligning policies with the needs of women entrepreneurs, we can create pathways to success and empower the next generation of business leaders.

Empowering Young Entrepreneurs

Moreover, empowering young entrepreneurs is essential for future prosperity. Despite their high aspirations, young people face formidable barriers to entrepreneurship. Governments have a role to play in providing not just financial support but also holistic training and coaching programmes that nurture entrepreneurial skills and resilience. To achieve this, entrepreneurship has to be more promoted early on, starting in elementary schools.

Welfare bridge schemes offer another avenue to support aspiring entrepreneurs, particularly job seekers. By converting unemployment benefits into grants for business creation, these measures not only provide financial support but also reduce information barriers and unconscious discrimination. Some pilot projects have shown promising outcomes, with a significant percentage of beneficiaries starting sustainable businesses that contribute to long-term economic growth.

What Does This Mean Moving Forward?

The journey towards inclusive and sustainable entrepreneurship requires collective action and unwavering commitment. By tapping into the talents of “missing” entrepreneurs and dismantling systemic barriers, we can unleash a wave of innovation and prosperity that benefits us all.

At Edventures, we wholeheartedly embrace this mission. Our vision is not just to empower aspiring entrepreneurs, but to revolutionise the global landscape of entrepreneurship support. Through our innovative platform, we provide tailored support and personalised coaching, ensuring that individuals from all backgrounds have the tools and resources they need to succeed.

We aim to break down barriers to entry and pave the way for a more inclusive and diverse entrepreneurial ecosystem. Join us on this journey towards a future where entrepreneurship knows no bounds, and every idea has the opportunity to flourish.

For more insights, please refer to the OECD report “The missing entrepreneurs” from 2023: Read the report here.