Every year the global financial services firm, Ernst & Young, releases in a report, the trends they see having “far-reaching impact on business, economies, industries, societies, and individuals”.
Included in their Mega Trends 2015 among health, green energy, and technological innovations, is entrepreneurship; which the report says the growth and prosperity of all global economies is dependent on.
“Entrepreneurs are the lifeblood of economic growth — they provide a source of income and employment for themselves, create employment for others, produce new and innovative products or services, and drive greater upstream and downstream value chain activities,” the report states.
There are interesting developments underway – all which are changing the face of entrepreneurship. This includes the rise of female, young and high-impact entrepreneurs.
Here are the 6 key aspects of the entrepreneurship rising trend.
1. OPPORTUNITY DRIVEN ENTREPRENEURSHIP
While rapid-growth markets, like Sub-Saharan Africa, have always had high levels of entrepreneurial activity – mainly because of high unemployment and poverty rates, according to the report, we can expect to see an increase in the number of opportunity driven entrepreneurs. These are, according to the report, “startups designed to pursue a specific commercial opportunity.”
2. DISRUPTIVE ENTREPRENEURS
Mature markets, which are made up of developed economies, have already seen high-impact or disruptive entrepreneurs who are building transformative businesses and succeeding. According to the report rapid growth markets will also see an increase in disruptive entrepreneurs who will succeed with what the report describes as “frugal innovation”, producing “lower-cost products and services tailored to unmet and local market needs.”
3. YOUTH ENTREPRENEURS
Say hello to the young entrepreneur. There are two reasons for this development, according to the report. The first is the high rates of youth unemployment together with changing “work and lifestyle preferences”. Simply put, more young people are looking at entrepreneurship as a viable career path. The report does highlight that these young people will need support, mentorship and funding.
4. WOMEN ENTREPRENEURS
The face of entrepreneurship is increasingly female. While more women are starting businesses globally, they face bigger hurdles than men, particularly in accessing funding. The report suggests that it’s important for policymakers and stakeholders “to create enabling environments for women that increase the chance for success.”
5. ENTREPRENEURIAL ENVIRONMENT
Apart from access to funding, which is necessary for entrepreneurs to succeed. The report outlines other requirements necessary for a “truly entrepreneurial environment”. They include:
- An entrepreneurial culture
- Supportive regulatory and tax regimes
- Educational systems that support entrepreneurial mindset
- A coordinated approach that links the public, private and voluntary sectors
6. FUNDING OPTIONS
The report acknowledges that access to funding remains the biggest hurdle for entrepreneurs in both the startup phase and in scaling a new business. The report states that a range of funding alternatives is necessary. This means reliance on venture capital, but greater involvement from government and stakeholders who are to extend “microfinancing, crowdfunding, and credit guarantee schemes to provide capital to entrepreneurs.”