Around the world, the number of people deterred from starting a business because of fear it might fail is increasing, according to the Global Entrepreneurship Monitor (GEM) 2024/2025 Global Report.

Those who take the leap are uncertain about the expected role of artificial intelligence in their businesses, the report, titled Entrepreneurship Reality Check, said.

Twelve GEM researchers across nine countries collectively agree that it is important to develop robust support systems, including financial assistance, accessible training, mentorship programmes, and simplified regulations to reduce the risks of starting a business and address fear of failure, enabling more entrepreneurs to thrives.

More than 150,000 people participated in the GEM Adult Population Survey (APS) in both 2019 (pre-pandemic) and 2024, across 50 and 51 economies respectively. In 2019, 44% of those surveyed agreed that they would not start a business for fear it might fail; by 2024 this proportion had increased to 49%.

In both years, a significant percentage of the 150,000 plus people agreed they saw good opportunities to start a business. Amongst these individuals, those that stated they would not actually start a business to leverage those same opportunities for fear it might fail increased from 42% in 2019 to 47% in 2024.

Between 2019 to 2024, the number of economies in which at least two in five people seeing good opportunities, yet would not start a business for fear it might fail increased markedly from 34 out of 50 (68%) to 43 out of 51 (84%).

Worldwide, there is considerable lack of awareness and uncertainty about how important artificial intelligence (AI) will become to new businesses in the next three years. Survey responses include high rates of “don’t know”.

Of those who did answer, in 36 of 49 economies (73%), fewer than three in 10 of those starting new businesses see AI as “very important” in the next three years.

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“It is real cause for concern to see this inequality in the awareness of AI impact on entrepreneurs across economies, which is skewed unfavourably towards the Global South entrepreneurs,” Professor Sreevas Sahasranamam, said.

“It is important that we launch awareness campaigns and training programmes to educate entrepreneurs about the importance and potential of AI.”

GEM Executive Director Aileen Ionescu-Somers added: “Entrepreneurship is a key driver of prosperity and innovation, and GEM’s long-standing research has been instrumental in tracking its impact.

“By gathering first-hand insights directly from the entrepreneurs themselves, GEM offers a unique perspective on how new businesses shape economies, tackle global challenges and invest in a sustainable future.”