The latest data from the new Global Entrepreneurship Monitor the report reveals a powerful trend for the future of entrepreneurship.

Young people aged 18-24 had the highest entrepreneurial activity and entrepreneurial intentions in the United States, according to Global Entrepreneurship Monitor 2023-2024 United States Report. With similar results in 2022, this is not just a small change – it is a fundamental change that could have lasting impacts on the economy and society.

I serve as chairman of the board for the Global Entrepreneurship Research Association, the entity that oversees GEM, which was founded in 1999 as a joint venture of Babson College and London Business School. As co-leader of the GEM US team and professor of entrepreneurship at Babson, I see firsthand the impact of the research generated by the Global Entrepreneurship Monitor.

Here are three entrepreneurship trends from the new GEM report that are changing the landscape for the future.

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1. Young entrepreneurs on the rise

For years, entrepreneurship has been dominated by older, more experienced individuals, but this year's report shows that younger adults are now at the forefront. According to GEM, 24% of 18- to 24-year-olds are engaged in some form of entrepreneurial activity, a higher rate than any other age group. What drives these young entrepreneurs is equally remarkable: they're not just starting businesses to make money; many are deeply committed to making a positive impact on society and the environment.

These young entrepreneurs do ENDURANCE a key priority. They are more likely than older generations of entrepreneurs to build businesses with sustainability as a primary focus – whether that means reducing their environmental footprint or focusing on social causes. This shift toward impact-driven entrepreneurship is not merely anecdotal. GEM's data shows a significant number of young entrepreneurs taking real, measurable steps to create businesses that align with their values. With sustainability as their north star, young entrepreneurs seem to be following suit social influence as well as profits.

However, it's not all smooth sailing. While young people are leading the way in starting businesses, they are also shutting them down at higher rates than their older counterparts. The dropout rate for 18- to 24-year-olds is 15%, the highest of all age groups. This is not surprising, given the challenges of inexperience and more limited access to capital. Starting a business is difficult, and maintaining a business is even more challenging. But despite these obstacles, the enthusiasm and energy that young people bring to entrepreneurship is undeniable, and with the right support, this generation has the potential to drive fundamental change.

2. The technical gender gap narrows

One of the most promising findings in the GEM report is narrowing the gender gap in the technology sector. Historically, tech startups have been dominated by men, but 2023 saw a record low change in the number of men and women starting tech companies. The gap has narrowed to just 1%, with 8% of women compared to 9% of men starting businesses in the Information and Communication Technology (ICT) sector.

This is an important step forward and reflects broader efforts to support more women's tech startups. However, it is important to recognize that while progress is being made, the continued focus on delivery equal opportunities is essential to ensure that this trend continues.

3. Optimistic Outlook for Black and Hispanic Entrepreneurs

Another highlight from the report is the optimistic outlook among them Black AND Hispanic entrepreneurs. These groups showed stronger confidence in their entrepreneurial abilities and lower fear of failure compared to their white counterparts. Black respondents, in particular, demonstrated high levels of resilience and self-confidence, which is vital in overcoming the barriers they face in starting and sustaining businesses. This optimism is encouraging, but there is still much work to be done to ensure that ecosystems provide equal opportunities for all aspiring entrepreneurs, regardless of their background.

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A promising future

Reflecting on the key findings of this year's GEM report, it is clear that the entrepreneurial landscape is changing in meaningful ways. The rise of young, sustainability-driven entrepreneurs signals a future where business is not just about profit, but also about change. These young entrepreneurs are starting businesses at a time when the world is looking for solutions to some of its most pressing challenges – climate changepoverty and economic recovery.

However, to fully realize the potential of this next generation, there needs to be more focus on addressing the challenges they face. Young entrepreneurs need access to the right resources – be it funding, education or mentoring – to turn their innovative ideas into sustainable businesses. The narrowing of the gender gap in technology is encouraging, but we must continue to foster environments that support women and other underrepresented groups in entrepreneurship.

The GEM report paints a picture of a entrepreneurial future driven by purpose, diversity and innovation. But it also reminds us of the work ahead of us to make entrepreneurship more accessible and sustainable. If we can give young entrepreneurs the tools and support they need, not only will we see more businesses being created – we'll see businesses that are making a lasting and positive impact on the world.