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Entrepreneurship in a Turbulent World: Why the Latest GEM Findings Give Us Hope and a Note of Caution

By Jane McGeeney, West Yorkshire Innovative Entrepreneurs Programme Lead, RTC North

I’ve always believed that entrepreneurship is an expression of human creativity and resilience. When times get tough, entrepreneurs don’t wait for the world to change, they get busy changing it.

That’s why this year’s Global Entrepreneurship Monitor (GEM) UK 2024/25 Report despite the turbulence of recent years, reveals a nation that’s rediscovering its entrepreneurial spark.

The numbers speak for themselves. Over one-third of working-age adults in the UK (36%) are now either running a business or planning to start one within the next three years. That’s the highest level since records began in 1999.

We’re also seeing encouraging trends in who’s starting these ventures. Women’s participation in early stage entrepreneurship has tripled since 2002, and young people aged 18–29 are more engaged than ever, with early stage entrepreneurial activity rising from 5% to 16%. Diverse communities including those immigrating to the UK, continue to be powerful drivers of innovation and new business creation, showing the importance of inclusive opportunity.

These are signs of a dynamic, creative economy one where more people are finding the confidence and courage to take control of their own futures.

But we can’t ignore the context. As the report puts it, entrepreneurship in the UK is unfolding ‘against the background of economic uncertainty’, rising living costs, stagnant productivity, and shifting global trade dynamics.

History tells us that spikes in entrepreneurship often occur during periods of turbulence. When traditional employment becomes less secure, people turn to enterprise as an alternative path. Sometimes this leads to incredible innovation. Other times, it’s a form of necessity, a way to make ends meet.

We’re seeing more side hustles, portfolio careers, and microbusinesses launched not just out of ambition, but out of need. That’s not necessarily a bad thing, it speaks to our adaptability, but it’s a reminder that behind every business statistic is a human story.

Let’s celebrate the courage it takes to start something new.

Let’s celebrate the growing confidence of young founders and women entrepreneurs who are breaking through barriers.

And let’s celebrate the increasing diversity of Britain’s entrepreneurial community, a strength that makes our innovation ecosystem more creative, inclusive, and globally connected.

However, we should treat this entrepreneurial spike with care. If rising activity is being driven by economic insecurity, limited job opportunities, or financial pressure, then we risk building a fragile foundation for the future.

Entrepreneurship driven by necessity can create self-employment, but not always sustainable growth. Without the right support, access to finance, leadership skills, digital capabilities, and mentoring, many of these ventures could struggle to survive beyond the start-up stage.

The message for policymakers is clear:

Don’t let this surge in entrepreneurship pass us by. We must harness it through:

Supporting sustainability — helping new businesses move from survival to success.
Strengthening the ecosystem — ensuring access to finance, training, and infrastructure reaches every community.
Understanding the motivations — distinguishing between opportunity-led and necessity-led entrepreneurship, and addressing the social issues that sit behind the trends.
The GEM report reminds us that the UK’s entrepreneurial ecosystem still has weaknesses, particularly around finance and policy support. But it also gives us reason to be optimistic. If we nurture this momentum and invest in the people behind these businesses, we can turn short-term reaction into long-term renewal.

In West Yorkshire, through the Innovative Entrepreneurs Programme, we’re working every day with people who embody that mindset, founders who are building not just businesses, but hope, energy, and possibility.

The challenge now is to turn this wave of entrepreneurial energy into a lasting engine of innovation and inclusion.

Because if there’s one thing the GEM report tells us, it’s this, the UK’s entrepreneurial spirit is alive and well. Let’s make sure it stays that way.

This was posted in Bdaily's Members' News section by RTC North .