The Demographic of Today's Entrepreneurs 2023

The Demographic of Today's Entrepreneurs

What does today’s entrepreneur look like?

The field of entrepreneurship is thriving, with over 30 million entrepreneurs in the United States, and 582 million entrepreneurs, worldwide.

Given the vastness of this profiled audience, so is the broad and ever-changing diversity of today’s entrepreneurs. In this article, we discover the characteristics, recent trends and statistics that lend to this audience's location, gender, race and age. Let’s dive in!

1. CHARACTERISTICS

Today's entrepreneurs are motivated by a desire to create something new and solve existing problems. They are also willing to take risks and learn from their mistakes. Today's entrepreneurs are not afraid to use technology to their advantage, and they are always looking for new ways to innovate.

Here are some of the characteristics of today's entrepreneurs:

• They are creative and innovative.

• They are problem solvers.

• They are risk-takers.

• They are resilient.

• They are passionate.

• They are driven.

• They are team players.

• They are tech-savvy.

2. LOCATION

Today, 582 million entrepreneurs worldwide are impacting and innovating their countries economies. According to US News, the top entrepreneurial countries are as follows (in order of GDP):

#1 United States (GDP $23 trillion)

#2 China (GDP $17.7 trillion)

#5 Japan ($4.94 trillion)

#4 Germany ($4.22 trillion)

#5 United Kingdom ($3.19 trillion)

With the growth of entrepreneurial countries also comes the benefits towards improving its economy. For example in the United States, The Small Business Administration estimates that small businesses contribute to the creation of 64% of new U.S. jobs.

3. GENDER

According to the World Economic Forum, (across the world) “men still outnumber women 3-1 when it comes to business ownership”.

(Globally) “In all economies, there are more men than women who own or manage limited liability companies. Women represent on average 1/4 of new business owners and directors while men stand for 3/4 of new business owners and directors. The rates of female participation for sole proprietors are slightly higher.” (World Bank Blogs, 2022).

Although males still dominate the market, females are quickly rising and are now even more likely to start a business than it’s male counterpart. According to Zippia, “In the United States, 41.5% of all entrepreneurs are women, while 58.5% are men.”. This rise in female entrepreneurship continues to increase on average by 2% (in U.S.) year on end.

4. RACE

The global entrepreneurial market is a melting pot of various races and ethnicities. According to Zippia, The most common ethnicity of entrepreneurs in the United States is:

White (67.1%)

Hispanic or Latino (15.4%)

Asian (6.4%)

Black or African American (6.3%)

Interestingly, of the groups, “Black women are the fastest growing demographic of entrepreneurs in the U.S., with nearly 2.7 million businesses nationwide.” (JPMorgan, 2021)

5. AGE

This topic does have different answers, depending on how you frame the question of age. Are we talking most common age, or prime age of starting a business? We break this down below:

What is the prime age for entrepreneurship?

“No one ever said that you can't be a successful entrepreneur at age 22 or 62. There are many. But research definitely points to the fact that education, experience, opportunity, network, and funding all come together in the mid-30s and position a founder to have the best chance of success.” (100 Steps To Startups, 2021)

What is the average age of entrepreneurs?

“HBR researchers found that the average age of entrepreneurs at the time of their company's founding is 42.” (Entrepreneur, 2023)

What age group has the most entrepreneurs?

According to NBCS, “35% of entrepreneurs and small business owners are in the 50-59 age bracket, followed by 40-49-year-olds. In fact, about 60% of people who start small businesses are between the ages of 40-60.”

Overall, the demographic of today's entrepreneur is constantly evolving. However, there are some common trends that can be observed, such as the increasing diversity of entrepreneurs, their younger age, and their higher levels of education and experience.

There are also a lot of opportunities for entrepreneurs to make a difference in the world. If you have a great idea for a business that can solve a social problem, there are a lot of people who will be willing to help you make it happen.

So if you are thinking about starting your own business, now is the time to do it. The entrepreneur industry is booming, and there are a lot of opportunities to make a difference in the world.

Did you know: “Entrepreneurs that take the time to create a plan for their business idea are 152% more likely to start their business.” (Small Business Economics Study, 2023)

A Startup Space is a consulting agency for startups. We empower entrepreneurs globally with a tailored guided plan of action, simplifying the journey from ideation, to go to market success.

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