Leverage Entrepreneurs for Sustainable Development: GEM's Insights on Entrepreneurship and Sustainability

The latest report by the Global Entrepreneurship Monitor (GEM) reveals striking trends in the relationship between entrepreneurship and sustainability worldwide. Drawing on data from its consortium of 60 national teams, the study examines the overlap between entrepreneurship and sustainability, shedding light on where and why entrepreneurs are motivated to make a difference. The report's findings suggest that the Global South, particularly Latin America & Caribbean region, is leading the way in sustainability-driven entrepreneurship, while younger, female, and graduate entrepreneurs are more likely to be driven by a desire to make a positive impact. Furthermore, the study highlights the fragmented awareness of the UN's Sustainable Development Goals (SDGs) among entrepreneurs, and a paradox between SDG awareness and action. This analysis will delve into the key takeaways and statistics from the report, exploring the potential of entrepreneurs to accelerate SDG progress.

Key Takeaways:

• **Global South leads on sustainability**: The Latin America & Caribbean region has the highest levels of new entrepreneurs meeting all four sustainability criteria, outperforming "usual suspects" such as those in Europe.
• **Youth, women, and graduates drive sustainability**: More women, younger entrepreneurs, and graduates agree with the motivation "to make a difference in the world" compared to their counterparts, while non-graduate entrepreneurs and older individuals are more likely to be driven by traditional motivations.
• **Awareness of SDGs is fragmented**: Despite an increase in awareness with national income levels, awareness of the SDGs among entrepreneurs is at best fragmented across geographies and income groups.
• **SDG awareness and action paradox**: Economies with relatively low SDG awareness, such as Sudan, Chile, and Qatar, have relatively high proportions of new entrepreneurs meeting all four sustainability criteria, indicating a potential paradox between awareness and action.
• **Leveraging entrepreneurs for the SDGs**: To accelerate progress, policy-makers should prioritize fostering a sustainability-focused mindset among entrepreneurs and provide contextualized innovative solutions to local sustainability challenges.

Statistics:

• 17% of UN's SDGs are on track for 2030, as revealed in the 2024 Sustainable Development Goals report.
• In 17 out of 23 high-income economies, at least one in four new entrepreneurs reported being aware of the SDGs in 2021-2023.
• In middle-income economies, 4 out of 13 entrepreneurs reported being aware of the SDGs during the same period.
• In low-income economies, no entrepreneurs reported being aware of the SDGs.
• The Global South experiences the most negative environmental and social impacts "on the front line," promoting a high awareness of the need for more sustainable development.

Sources:

• Global Entrepreneurship Monitor (GEM) report: Sustainability and Entrepreneurship: Awareness and Actions
• 2024 Sustainable Development Goals report
• UN's mid-term SDG progress evaluation in 2023