U.S. student startup economy is the most competitive among emerging economies
U.K. student entrepreneurship is one of the most dynamic and competitive sectors of the global economy, according to the U.N.’s latest global student startup survey.
The study also showed that student entrepreneurship was gaining momentum, despite the global economic downturn.
“I think what we’re seeing is an emergence of student entrepreneurship and entrepreneurship is being a key driver of growth in a lot of emerging economies,” said U.C. Berkeley’s Jeffrey Yoon.
“It’s one of those sectors that’s very resilient, it’s one that is very flexible and it’s very adaptive to changing conditions and to changing technology.”
Yoon’s study, conducted by the World Bank and Harvard University, found that entrepreneurship was surging in some countries.
The most competitive country was India, where the number of students with business experience jumped from about 10,000 in 2015 to over 40,000 this year.
And it was surging rapidly in Brazil, where nearly 40 percent of students in that country are graduates of business schools.
In China, where students have historically had a difficult time finding business opportunities, students’ entrepreneurship has exploded since the early 2000s, according the survey.
In addition to India, countries with the highest number of student entrepreneurs include Mexico (30,000), South Africa (27,000) and the Philippines (26,000).
“There’s a lot happening in this sector, especially in emerging economies where students are going into the field with the idea of creating a new business,” Yoon said.
“The number of people in India, the number in South Africa and the number that are in Brazil are very high.”
Yoons study, published Tuesday in the U,N.
Development Program’s International Entrepreneurship Report, looked at the characteristics of students’ startup businesses.
It also examined how businesses operate and how many students were founders.
In most cases, the survey found that entrepreneurs have the experience and skills to build their businesses.
But in some cases, students lack the financial skills and financial backing needed to create a business, said Yoon, who is a fellow with the World Resources Institute’s Institute for Entrepreneurships and Innovation.
“There are also some students that are not even entrepreneurial, so they don’t have the financial background to be able to run a business,” he said.
One of the biggest challenges for student entrepreneurs is that the costs of running a business can be very high, and it can be difficult to find financing.
For example, the World University Rankings (WEUR) said that a typical student’s student loan payments are about $1,000 a month.
Yoon believes that student entrepreneurs should be able and willing to pay the student loan to start a business.
“They should be aware of that, they should be willing to take on that debt,” he added.
“Students should be encouraged to think about what their financial future looks like in a world where they are no longer working, where they have no savings, where their parents have lost jobs.
If you think about it, they are probably more likely to be living in poverty than to be working.”
In India, nearly one-third of the students surveyed have a student loan balance of less than $5,000.
“India is a relatively young country, and there are a lot more students that need to get into entrepreneurship than there are students that can,” said Yoons research fellow Kala Kaul.
“So it’s important that students are encouraged to do this because it is an investment that could be very, very beneficial for them.”
And while the report does not specifically mention the financial aid and loans that students can get from their universities, Kaul says that there is a “growing recognition that there’s a need for more financial aid to support students who are not in financial need.”
“It also needs to be emphasized that this is not just a problem for students, it also applies to entrepreneurs,” Kaul said.
Some students, however, are not convinced that financial aid should be used to launch a business and want to see government help.
“A lot of students are thinking that it’s their problem, that they are the problem,” said Chantal Pichot, the co-founder of The Crop, an online seed fund that invests in startup businesses in emerging markets.
“And the government needs to take action to address this,” she said.
Pichut said that it is important for students to be “aware of the obstacles that they face” and to think long-term.
“We are in a very unique position where we have to innovate and we need to change to a better future,” she added.