Global Entrepreneurship Monitor: Scotland reaches entrepreneurial milestone
Entrepreneurship in Scotland has reached a new milestone with one in ten adults now starting or running a young company, according to a business activity survey.
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 in 2024 – the highest figure since the survey began in 2002.
With an additional 8% of adults reporting as established business owners, it means nearly one in five Scots are now classed as entrepreneurs.
Strong participation
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.
The analysis highlights the rise in entrepreneurship, particularly among younger age groups, but also draws attention to persistent gender and regional disparities.
The report revealed a 14% increase in early-stage entrepreneurship between 2023 and 2024 – the fastest rise among the UK’s Home Nations. Scotland also now has the youngest early-stage entrepreneurial population in the UK, with an average age of 37 and particularly strong participation among those aged 18 to 34.
However, the gender gap has widened, with male participation rising to 12.7% while female participation remained static at 8.1%.
A female-to-male total early-stage entrepreneurial activity (TEA) ratio of 64% in 2024 represents the widest gender gap among the Home Nations. This follows near-parity in 2023, when women were starting and running new businesses at almost the same rate as men for the first time.
Policy considerations
Regionally, activity remained robust in the Highlands and Eastern Scotland but declined sharply in the North East, where early-stage entrepreneurship halved in the past year, although small sample sizes increase the margin of error in the estimates.
Entrepreneurial activity among non-White Scots continues to outpace that of White Scots, at 22.7% compared with 10.4%.
The findings also point to key policy considerations. 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 says support for younger entrepreneurs is essential, given the strong youth engagement but limited resources available to early-stage founders.
Entrepreneurship is very positively regarded in society, with over 70% of the adult non-entrepreneurial population surveyed indicating that startup activity receives regular coverage in the media and successful entrepreneurship is well respected in society.
Encouraging sign
Professor Sreevas Sahasranamam, of the Adam Smith Business School at the University of Glasgow, said, “Scotland’s record-breaking entrepreneurial activity is an encouraging sign of the country’s economic dynamism. However, the reopening of the gender gap and persistent regional disparities remind us that inclusive and tailored support is essential.”
Dr Samuel Mwaura, of The University of Edinburgh Business School, said, “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.”
Dr Efstathios Tapinos, of the Hunter Centre for Entrepreneurship, Strategy and Innovation at the University of Strathclyde, said, “The volatility of entrepreneurship in the North East Scotland requires focussed attention to identify its root causes and provide structured support.”
Professor Gavin Jack, Dean of The University of Edinburgh Business School, said, “The growth in entrepreneurship in Scotland shows that our economy is changing, with more young people starting businesses, powered by rapid technological advances. Business education must evolve to meet the needs of these new-age entrepreneurs.”
Big trends
Professor Niall MacKenzie, Head of the Hunter Centre for Entrepreneurship, Strategy and Innovation at Strathclyde Business School, said, “Findings in this year’s GEM report underline the need for Scottish universities to further our engagement with industry and policy, to ensure that rising entrepreneurship builds inclusivity, without creating new inequalities.”
Darren Pirie, Head of NatWest Accelerator, said, “This report does more than illuminate the big trends shaping UK entrepreneurship: it’s a much-needed call to action to build an environment where every entrepreneur and growing business has the tools, confidence and support to succeed.”
The Global Entrepreneurship Monitor (GEM) is the world’s most comprehensive study of entrepreneurship, having surveyed more than four million individuals across over 100 countries since 1999. In the UK, over 372,000 adults have been interviewed since 2002, including more than 46,000 in Scotland with the generous funding support from the Hunter Centre for Entrepreneurship, Strategy and Innovation.