Entrepreneurial activity in the Valencian Community: a GEM study overview (2021-2022)
The recent GEM report titled Global Entrepreneurship Monitor: Entrepreneurial activity in the Valencian Community 2021-2022 presents key findings about how people view business opportunities and the willingness to start new ventures. It notes a rebound in optimism after the pandemic, with 27% of residents perceiving opportunities to undertake and about 8.4% actively considering starting a business. The study also highlights reliance on personal funds, with many entrepreneurs using savings or turning to friends and family for financial support.
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In this research, a survey was conducted with one thousand participants. The findings indicate that Valencians’ perception of available opportunities has risen by roughly ten points versus the previous year, aligning with a notable uptick in the intention to launch new ventures.
Experts explain that this shift is closely tied to broader entrepreneurial sentiment. The intention to start a business rose from 5.2% in 2020 to 8.4% in the most recent year, representing a substantial increase. Meanwhile, entrepreneurial activity continues to show resilience.
The TEA indicator, which tracks early-stage entrepreneurial activity, shows that 5.3% of adults in the Community were involved in ventures active for less than 42 months in late 2021, a figure that remains largely consistent with 2020. Conversely, the rate of established, ongoing entrepreneurial activity rose from 6.1% in 2020 to 6.7% in the latest period.
The typical entrepreneurial profile centers around individuals around age 40, with a university education in the mid-30s, and a strong motive linked to professional development. Women’s participation has grown in recent years, contributing to a narrowing gender gap, which sits at about 52.8% men and 47.2% women in the observed data.
Financial sources: families and savings fuel early growth
Regarding funding, personal savings account for about 54% of startup capital, while a notable portion of early funding comes from informal channels, including family and friends, contributing roughly 15% of the total. These patterns reflect how the entrepreneurial ecosystem is evolving and the varying financing options available to new ventures.
Overall, the study synthesizes expert analyses from a diverse panel and concludes that the positive momentum seen in recent years is helping to strengthen the regional climate for entrepreneurship. While access to physical infrastructure, supportive services, and favorable socio-cultural norms are relatively strong, shortcomings persist in financing availability and school-based entrepreneurial education.
The Valencian Community study was conducted with the support of regional authorities responsible for sustainable economy, productive sectors, trade, and labor. The assessment partners include the LAB Mediterráneo Foundation and several entrepreneurship support organizations. GEM, the Global Entrepreneurship Monitor, is an international research network that measures entrepreneurship through a person-centric methodology across all stages of the entrepreneurial process.
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The study’s presentation took place during a focused week dedicated to small businesses in the Valencian Community, highlighting trends that are reshaping the business landscape. The event featured a moderator who oversees entrepreneurship and cooperatives, underscoring the ongoing leadership role of the regional university network in driving GEM reporting. The UMH continues to coordinate the GEM program in the Valencian Community and has produced annual reports on entrepreneurship since 2004, providing insights into the state and evolution of local enterprise.