Scotland has reached an entrepreneurial milestone, with new figures showing that one in ten adults is now engaged in start-up companies.

The Global Entrepreneurship Monitor (GEM) Scotland 2024-25 found that 10.4% of working-age adults in Scotland were engaged in early-stage entrepreneurial activity last year, the highest figure since the business survey began in 2002.

Added to that, with an additional 8% of adults reporting as established business owners, it means nearly one in five Scots are now classed as entrepreneurs.

The report, co-authored by researchers at the Universities of Strathclyde, Edinburgh and Glasgow, draws on interview responses from 1,641 working-age adults in Scotland.

Analysis of the results highlights that the rise in entrepreneurship is particularly strong among younger age groups, with Scotland having the youngest early-stage entrepreneurial population in the UK at an average age of 37, and a high level of participation among those aged 18 to 34.

“The growth in entrepreneurship in Scotland shows that our economy is changing, with more young people starting businesses, powered by rapid technological advances,” said Professor Gavin Jack, Dean of the University of Edinburgh Business School.

“Business education must evolve to meet the needs of these new-age entrepreneurs.”

However, the data also shows that the gender gap has widened, with male participation rising to 12.7% while female participation remains static at 8.1%.

Scotland’s female-to-male total early-stage entrepreneurial activity (TEA) ratio of 64% last year represents the widest gender gap among all the Home Nations, a concerning divide given that it follows the near-parity of 2023, when women were starting and running new businesses at almost the same rate as men for the first time.

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According to the study, the findings point to key policy considerations that might even the playing field. For instance, women are significantly less likely than men to feel they have adequate access to business support, and regional fluctuations suggest the need for locally tailored approaches.

The report also claims that despite the show of strength, continuing support for younger entrepreneurs is essential, given the limited resources available to early-stage founders.

Targeted regional support may also be necessary, with the study finding that although entrepreneur activity is robust in the Highlands and across Eastern Scotland, there has been a sharp decline in the North East, where early-stage entrepreneurship halved in the past year.

“If we want Scotland to build on this momentum, we need strategies that not only encourage more people to start businesses but also ensure that women, minority groups, and different regions can thrive equally in their entrepreneurial journeys,” said Dr Samuel Mwaura, of the University of Edinburgh Business School.