The pandemic era provides a rich case study for the value of entrepreneurship in our society. In the face of unnerving uncertainty, entrepreneurs around the world launched and pivoted companies – in some countries at record rates – to provide better futures for themselves and their communities.
Whether they did so out of necessity after swift losses of income, because the pandemic created new problems to solve, or because the conditions were ripe to test new ideas, we are only just starting to see the legacy these entrepreneurs – and the ecosystems that support them – will have on our society.
In the meantime, thanks to research like the Index of Dynamic Entrepreneurship (IDE), we have fresh insights into the state of entrepreneurship at national levels. The 2021 report examines changes in social, economic, education, cultural and regulatory conditions for entrepreneurship in 40 countries and illustrates these conditions with country-specific profiles.
(1)The United States, Norway, the Netherlands, Germany and Sweden are the top five ecosystems in the IDE 2021 ranking.
(2)In general, the pandemic had a negative impact on global conditions for entrepreneurship. IDE values fell for nearly three in four countries compared to their pre-pandemic levels, with an average drop of nearly six percent.
(3)However, some countries hit hard by the pandemic experienced only small regressions in the conditions for entrepreneurship. Others, such as India and Brazil, showed progress. In these cases, the progress is attributed to growth in entrepreneurial human capital.
(4)Many countries reported progress, from pre-pandemic levels, in dimensions such as financing, policies and regulations, education and STI platform. At the same time, many countries saw setbacks in demand conditions, business structure and culture.
This report provides a benchmark to track the progress of these conditions as leaders worldwide take steps to move beyond the pandemic – rethinking their economies and regenerating future growth.