According to World Bank data, 30% of the global population may be working for themselves, and even strong economies—where job opportunities abound—are experiencing an increase in self-employment rates.
Furthermore, this pattern will only be exacerbated in the near future, when more millennials leave college to enter the job market, and when those currently in employment give up working for someone else.
Although millennials are expected to make up 75% of the workforce by 2025, a significant number will never be employees in the traditional sense. Turnover figures for millennials are already twice as high as for other generations, with millennials rarely staying on the job for more than three years. Millennials are also more likely to work for themselves.
2014 Global Entrepreneurship Monitor (GEM) U.S. Report issued today by Babson College and Baruch College. This is the highest rate ever recorded in the United States.
Job creation outlook rose eight percentage points from 2013, with 24 percent of U.S. entrepreneurs projecting to hire 20 or more people in the next five years. Optimism about entrepreneurship is stronger than ever as more than half the U.S. population (51 percent) reported seeing good opportunities for starting businesses.
Fear of failure, which measures one’s willingness to take risks in starting a business, decreased to 30 percent from a high of 32 percent in 2012.
Donna Kelley, the GEM Report’s lead author. “Entrepreneurial growth depends on people who see opportunities and have intentions to get started. The greater optimism we see in the U.S. signals high support for entrepreneurs, and the increase in job ambitions clearly indicates the potential for entrepreneurship to make major contributions to the U.S. economy.”
The Report, which generates insights about entrepreneurship in the U.S., records entrepreneurs’ profiles, motivations, and business characteristics while documenting the societal attitudes that often shape entrepreneurial success.
This year’s Report takes an in-depth look at the value of teamwork among entrepreneurs and continues to track the activity of women and both young and older entrepreneurs.
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