The Global Entrepreneurship Monitor (GEM) is hot off the press. As the world’s most authoritative comparative study of entrepreneurial activity, it’s a vital source for understanding the state of entrepreneurship in the UK.

The survey of close to 10,000 adults found that in 2020 total early-stage Entrepreneurial Activity (TEA), ie. the percentage of the population involved in nascent entrepreneurship, dropped to 7.9%. This is significantly lower than 2019, when it stood at 9.9%, but not too dissimilar from 2018, when it was 7.9%. For context, this puts us behind the US (15.4%), but ahead of Germany (4.8%).

This shouldn’t come as a surprise. While many great businesses are started during crises, it’s understandable that many wannabe entrepreneurs are holding fire. After all, larger companies are more able to survive pandemics and other shocks than are smaller businesses. And people will have been reticent to leave stable work where they can receive furlough payments, and start something higher risk.

However, with the climate improving, brace yourself for a resurgence in entrepreneurship: 16.2% of working age adults expected to start a business within the next 3 years. This is up from 11% in 2019. Once again, we sit between the US (18.6%) and Germany (12.7%)

The British public is optimistic, with the share of those agreeing that starting a business would be a good career choice jumping significantly from 58% to 75%. So while the pandemic has given wannabe entrepreneurs pause for thought, if we could fast forward to next year’s report I expect we’ll see that many will have taken the leap.

Cookie Monster
On the blog, Sam Dumitriu has written about the news that the Government is looking at reforming our data laws. While he welcomes the opportunity to diverge from some of the sillier aspects of EU data protection law, he thinks the government should instead prioritise no longer bringing in the bad regulations.

After all, many startups prefer to tolerate the excesses of GDPR in exchange for our data adequacy agreement with the EU. And the damaging aspects of GDPR have already been realised, with compliance practices already standardised.

Sam raises the example of the age-appropriate design code, which aims to protect children from harmful content online. While its aims are laudable, it would severely tilt the playing field against startups and towards incumbents, as consumers will understandably be reluctant to hand over personal information such as their passport details to new businesses.

Ain’t No Party
Many of us will be at the upcoming Party Conferences in Brighton and Manchester, speaking on panels inside the secure zone.

We often host our own events outside the secure zone, so we can ensure entrepreneurs who don’t have a conference pass are still able to attend. Anyone working with an organisation that wants to partner on an event should get in touch with me to discuss what we could do. Also, if you’re attending either conference, let me know if you would like to arrange to catch up with me and the team over a coffee (or perhaps something stronger) – either inside or outside the secure zone.