Entrepreneurship nowadays is most commonly measured using indicators developed by The Global Entrepreneurship Monitor (GEM). The Global Entrepreneurship Monitor (GEM) project is an annual assessment of the entrepreneurial activity, aspirations and attitudes of individuals across a wide range of countries. Initiated in 1999 as a partnership between London Business School and Babson College, the first study covered 10 countries; since then more than 85 ‘National Teams’ from every corner of the globe have participated in the project, which continues to grow annually.
GEM is the largest ongoing study of entrepreneurial dynamics in the world.
GEM explores the role of entrepreneurship in national economic growth, unveiling detailed national features and characteristics associated with entrepreneurial activity. The data collected is ‘harmonized’ by a central team of experts, guaranteeing its quality and facilitating cross-national comparisons.
The program has three main objectives:
- To measure differences in the level of entrepreneurial activity between countries
- To uncover factors leading to appropriate levels of entrepreneurship
- To suggest policies that may enhance the national level of entrepreneurial activity.
GEM is unique because, unlike other entrepreneurship data sets that measure newer and smaller firms, GEM studies, at the grassroots level, the behaviour of individuals with respect to starting and managing a business. This approach provides a more detailed picture of entrepreneurial activity than is found in official national registry data sets and in so doing aids to a better understanding of :
- the different roles of entrepreneurship in the economy and society at large
- the degree to which individuals exhibit relevant perceptions and attitudes attributed to entrepreneurship, as well as the degree to which they are involved in entrepreneurial activity in a cross country (or regional) comparisons.
- the state of key external conditions entrepreneurs face when starting a business.
- the evolution of the above over time
Professor Mark Hart outlines the benefits of the GEM project