“GEM Hungary research is much more than collection of statistics. It serves as a mirror of who we are as entrepreneurs, decision-makers, and an economic community.”
This perspective was shared by Elek Nagy, President of the Hungarian Chamber of Commerce and Industry, in the latest GEM Hungary 2024–2025 National Report, authored by Judit Csákné Filep, Áron Szennay, and Gigi Timár. Produced by the Budapest University of Economics and Business (BUEB), the report shows that the entrepreneurial climate in Hungary remains relatively stable, but a notable decline in early-stage entrepreneurial activity has raised concerns.
“One of the biggest challenges for entrepreneurs is to make informed decisions in an environment that is fast-changing, and where information and adaptability are increasingly key to success,” Nagy noted. “GEM research provides an accurate and comprehensive picture of the entrepreneurial ecosystem and helps domestic businesses to better navigatethe market opportunities and challenges – both in Hungary and internationally.”
Now in its fourth year of data collection GEM Hungary on the occasion of GEM’s 25th Silver Anniversary celebrations was awarded a prize for its punctuality and collegiality in conducting the research cycle.
A sharp decline in early-stage activity
The report is based on survey responses from 2,040 adults and interviews with 36 experts, offering a comprehensive snapshot of Hungary’s entrepreneurship environment within both European and global contexts.
The most significant finding in this year’s report is the sharp decline in early-stage entrepreneurial activity, from 9.9% in 2023 to 6.7% in 2024. This drop, mostly attributed to a reduction in businesses that have been active for up to 3.5 years, places Hungary well below both the global average (13.2%) and the average of high-income countries (11.6%).
Compared to other EU member states, Hungary now ranks in the bottom quartile for early-stage entrepreneurship. Only Poland, Romania, Greece, and Austria reported lower rates. Although intentions to start a business remain relatively steady at 9.6%, the growing gap between intention and execution signals structural challenges in the entrepreneurial ecosystem.
The share of established businesses in Hungary (6.9%) aligns closely with the GEM global average (7.0%). Yet the lag in new business creation could have longer-term consequences, particularly for innovation, job creation, and economic dynamism.
Cautious optimism meets knowledge gaps
The report shows that the perception of the entrepreneurial climate remains steady, and optimism about future opportunities is growing. Just over 32% of Hungarian surveyed believed there would be good opportunities to launch a business in the next six months, an increase that suggests rising economic confidence.
On the other hand, key barriers such as fear of failure and lack of knowledge persist. Only 35.8% of Hungarians felt they had the knowledge and skills needed to start a business, the lowest level in the EU. Notably, Hungarians under 35 are more optimistic about future opportunities but find launching a business more difficult than their older counterparts.
Educational divide in entrepreneurial readiness
Education remains a powerful factor in entrepreneurship. Among those with more than secondary education, nearly half (45.6%) felt they had the necessary skills to start a business, compared to just 25.2% among those with only primary education. However, perceived ease of starting a business did not vary significantly across educational levels.
Interestingly, while entrepreneurship is broadly viewed as a desirable career path, especially by younger generations, intentions have not translated into action. Between 2021 and 2024, indicators such as media attention (49%), perceived status of entrepreneurs (45.1%), and desirability (46.1%) remained high. Yet despite these positive perceptions, entrepreneurship participation has fallen.
Purpose over profit: A shift in motivation
Amid financial uncertainty, many entrepreneurs in Hungary are increasingly driven by impact rather than necessity. In 2024, 68.6% of early-stage entrepreneurs and 58.7% of established ones said they were motivated to “make a difference in the world.” Meanwhile, necessity-driven entrepreneurship – while still affecting about half of respondents – reached its lowest level since GEM Hungary began data collection.
This shift suggests that Hungarian entrepreneurs are becoming more purpose-driven and potentially more optimistic about the future. It may also reflect a pivot away from short-term survival toward longer-term value creation.
Underuse of digital tools
A new set of GEM questions in 2024 explored how businesses are adopting digital tools and artificial intelligence (AI). The findings reveal a significant digital gap: Hungarian entrepreneurs – especially those running established businesses – are much less likely to consider AI as important, compared to their peers in Europe and North America. While early-stage entrepreneurs in Hungary are more in line with international averages, established businesses lag considerably. However, usage of data analytics, cloud tools, video conferencing, and customer relationship management software remains robust, especially among more mature firms.
The gender gap and educational divide persist
Gender disparities also remain clear: men consistently rate the entrepreneurial environment more positively than women, and are twice as likely to be entrepreneurs. Hungarian entrepreneurs tend to be male and more educated. In 2024, women were half as likely as men to be involved in either early-stage or established businesses. Furthermore, the data show that entrepreneurs – regardless of gender – tend to have higher educational attainment than the general population. For example, 67.4% of women running established businesses had more than secondary education, compared to just 40% of the general female population.
This pattern reinforces the role of education in entrepreneurial success, but also highlights the need to broaden access to entrepreneurial knowledge and training.
Ecosystem ratings and policy outlook
Hungary’s National Entrepreneurial Context Index (NECI) score remained unchanged at 4.5 out of 10, slightly below the global GEM average. While Hungary outperformed peers such as Poland and Slovakia, weaknesses remain. The lowest-rated aspect of the entrepreneurial ecosystem continues to be school-level entrepreneurship education (2.5 out of 10), though vocational and higher education received a more favorable rating (4.8).
Nagy concluded: “For the renewed leadership of the Hungarian Chamber of Commerce and Industry, it is a priority that our decisions are based on knowledge and credible data. As President, I deeply believe that the future economy will be shaped by businesses that are able to grow through data-driven, conscious strategies. GEM provides essential supportin this by mapping the most important connections of entrepreneurial dynamics. The GEM report is a valuable tool for all those who wish to make responsible, well-founded decisions for the future of the Hungarian economy.”
Access the GEM Hungary 2024–2025 National Report.