GEM Indicators 2010 by GEM

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World Entrepreneurship Indicators in 2010 gathered by Global Entrepreneurship Monitor (GEM)

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Notes

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Perceived Capabilities: % of 18-64 pop. who believe they have the required skills and knowledge to
start a business

Perceived Opportunities: % of 18-64 pop. who see good opportunities to start a firm in the area
where they live

Fear of Failure Rate: % of 18-64 pop. saying that fear of failure would stop them setting up a
business. NOTE: This measure applies only to those who see good opportunities to start a firm in the
area they live (see the Perceived Opportunities measure).

Entrepreneurial Intention: % of 18-64 pop. intending to start a business within 3 years. NOTE:
Excludes individuals already involved in any stage of entrepreneurial activity.

Know Startup Entrepreneur Rate: % of 18-64 pop. who personally know someone who has started a
business in the past 2 years

Entrepreneurship as Desirable Career Choice: % of 18-64 pop. who agree that entrepreneurship is
considered a good career choice in their country

High Status Successful Entrepreneurship: % of 18-64 pop. who agree that successful entrepreneurs
receive high status in their country

Media Attention for Entrepreneurship: % of 18-64 pop. who say you often read about successful
new businesses in the media in their country

Nascent Entrepreneurship Rate: % of 18-64 pop. who are ‘nascent entrepreneurs’

New Business Ownership Rate: % of 18-64 pop. who are currently owner-manager of a ‘new
business'

Total early-stage Entrepreneurial Activity (TEA): % of 18-64 pop. who are either a 'nascent
entrepreneur' or owner-manager of a ‘new business'

Established Business Ownership Rate: % of 18-64 pop. who are currently owner-manager of
an ‘established business '

Necessity-Driven Entrepreneurial Activity: Relative Prevalence: % of those involved in TEA who
became entrepreneurs because they had no other option for work

Improvement-Driven Opportunity Entrepreneurial Activity: Relative Prevalence: % of those
involved in TEA who say they’re opportunity-driven + seek independence/to increase income

Total early-stage Entrepreneurial Activity for Male Working Age Population: % of male 18-64 pop.
who are either a ‘nascent entrepreneur’ or owner-manager of a ‘new business’

Total early-stage Entrepreneurial Activity for Female Working Age Population: % of female 18-64
pop. who are either a ‘nascent entrepreneur’ or owner-manager of a ‘new business’

Informal Investors Rate: % of 18-64 pop. who have provided funds for a new business, started by
someone else, in past 3 years

Growth Expectation early-stage Entrepreneurial Activity: Relative Prevalence: % of those involved
in TEA expecting to employ at least 5 employees 5 years from now

New Product early-stage Entrepreneurial Activity: % of those involved in TEA who indicate that
their product/service is new to at least some customers

International Orientation early-stage Entrepreneurial Activity: % of those involved in TEA who
indicate that at least 25% of their customers come from abroad

NOTE:

A 'nascent entrepreneur' is defined as someone actively involved in setting up a business they will
own or co-own; this business has not paid salaries, wages, or any other payments to the owners for
more than three months.

A 'new business' is defined as a running business that has paid salaries, wages, or any other
payments to the owners for more than three months, but not more than 42 months.

An 'established business' is defined as a running business that has paid salaries, wages, or any other
payments to the owners for more than 42 months.

For further information, sample sizes and questionnaires visit www.gemconsortium.org>

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