The State of Entrepreneurship: Key Statistics to Know in 2021
Entrepreneurship has been a cornerstone of the world’s economies for decades. It provides opportunities for people to create something new, innovate, and make an impact. But what is the state of entrepreneurship in 2021? Let’s take a closer look at some of the key statistics.
1. Entrepreneurship is Growing Rapidly
According to recent data, the number of entrepreneurs worldwide has been increasing rapidly. In 2020, there were over 582 million entrepreneurs, which is a 12.5% increase from 2019. This growth has been attributed to several factors, including technological advancements and the rise of the gig economy.
2. Women Are Making Strides in Entrepreneurship
There has been a significant increase in the number of women entrepreneurs in recent years. In fact, women now make up 36% of all entrepreneurs worldwide. This trend is particularly strong in developing countries, where women entrepreneurs are making great strides in various sectors such as food and beverage, retail, and hospitality.
3. Startups Face Funding Challenges
Despite the surge in entrepreneurship, startups continue to face challenges when it comes to funding. According to PitchBook, global venture capital investment has decreased by 20% in 2020 due to the pandemic. This has made it difficult for startups to secure funding, particularly in industries that have been hit hard by the pandemic.
4. E-commerce is Booming
The pandemic has caused a significant shift in consumer behavior, with more people turning to e-commerce for their shopping needs. This trend is expected to continue, with global e-commerce sales projected to reach $4.9 trillion by 2021. This presents a significant opportunity for entrepreneurs looking to start an e-commerce business.
5. Innovation is Critical for Success
Innovation has always been a critical driver of entrepreneurship. The pandemic has highlighted the importance of innovation, with entrepreneurs being forced to pivot and adapt to changing market conditions. According to a survey by KPMG, 85% of investors believe that innovation is critical for the success of a startup.
Entrepreneurship is thriving in 2021, with a growing number of people starting their own businesses worldwide. Women entrepreneurs are making great strides, and e-commerce is booming. However, startups continue to face funding challenges, and innovation is critical for success. As we continue to navigate the pandemic and its aftermath, it’s clear that entrepreneurship will continue to play a crucial role in shaping the world’s economies.