More people are avoiding starting businesses because they fear failure, according to the latest Global Entrepreneurship Monitor (GEM) 2024/25 report. Even those who take the risk face uncertainty about how artificial intelligence (AI) will shape their businesses.

A survey of more than 150,000 people across 50 economies in 2019 and 51 in 2024 found that the share of respondents unwilling to start a business due to fear of failure rose from 44% to 49%. Among those who saw good opportunities, the share who held back for the same reason increased from 42% to 47%. The number of economies where at least 40% of potential entrepreneurs were deterred rose from 34 (68%) in 2019 to 43 (84%) in 2024.

Easing the fear

To ease these concerns, GEM researchers in nine countries say governments should offer better support—financial aid, mentoring, and simpler regulations—to reduce risk and encourage entrepreneurship. “Lowering the risks of starting a business is key to helping more entrepreneurs succeed,” they argue.

Uncertainty about AI is another hurdle. In 36 of 49 economies, fewer than 30% of new business founders think AI will be “very important” over the next three years. Many simply do not know. This knowledge gap is widest in the Global South. “We need awareness campaigns and training to ensure entrepreneurs are prepared for an AI-driven future,” say the researchers.

Now in its 25th year, GEM is the world’s leading study of entrepreneurship. Its research has shaped decisions by policymakers, business leaders, and academics. By speaking directly to entrepreneurs, it offers a unique view of how new businesses drive economies, tackle global challenges, and build a more sustainable future.