For the second consecutive year, the United Arab Emirates is #1 in the Global Entrepreneurship Monitor (GEM) National Entrepreneurship Context Index (NECI).
As noted in the GEM 2022/2023 Global Report entitled Adapting to a New Normal (released today), GEM defines the entrepreneurial context of a particular economy in terms of 13 different characteristics, labelled the Entrepreneurship Framework Conditions (EFCs):
- Entrepreneurial Finance: there are sufficient funds for new startups
- Ease of Access to Entrepreneurial Finance: and those funds are easy to access
- Government Policy — Support and Relevance: policies promote and support startups
- Government Policy — Taxes and Bureaucracy: new businesses are not over-burdened
- Government Entrepreneurial Programs: quality support programs are widely available
- Entrepreneurial Education at School: schools introduce entrepreneurial ideas
- Entrepreneurial Education Post-School: colleges offer courses in how to start a business
- Research and Development Transfers: research is easily transferred into new businesses
- Commercial and Professional infrastructure: quality services are available and affordable
- Ease of Entry — Market Dynamics: markets are free, open and growing
- Ease of Entry — Burdens and Regulations: regulations encourage not restrict entry
- Physical Infrastructure: good-quality, available and affordable
- Social and Cultural Norms: encourage and celebrate entrepreneurship
The NECI results are based on the scores of the Framework Conditions for each of the 51 economies participating in GEM. At least 36 experts, often more, are selected for their expertise by the GEM National Team and approved by GEM to assess statements that make up the scores. As the same questions are asked in all economies, scores can be compared across countries.
In 2022, the UAE ranked first for seven of the 13 Framework Conditions:
Ease of Access to Entrepreneurial Finance
Government Policy — Support and Relevance
Government Policy — Taxes and Bureaucracy
Entrepreneurial Education Post-School:
Research and Development Transfers
Commercial and Professional Infrastructure
In addition, the UAE was second in five more. Between 2021 and 2022, the United Arab Emirates improved its scores in nine Framework Conditions, with the largest increases for Entrepreneurial Finance and Entrepreneurial Education Post-School.
“Entrepreneurship remains a high priority in the United Arab Emirates, with the recently launched ‘Projects of the 50’ targeting the next 50 years of development,” said Teemu Kautonen, Professor at the United Arab Emirates University and Team Leader of the GEM UAE Team. “These results point to the success of recent government initiatives and the efforts of all the stakeholders in our entrepreneurial ecosystem.”
In 2019 and 2020, the UAE ranked fifth among GEM economies, and then leapt forward in 2021 to become the most highly rated of all GEM economies. In 2022, its NECI further improved to a score of 7.2, the highest achieved since the NECI was introduced in 2019 — just as the United Arab Emirates score of 6.8 had been the year before.
“The EFCs are derived from more than two decades of GEM research, experience and knowledge,” said Aileen Ionescu-Somers, GEM Executive Director. “The state of the EFCs can encourage and enable, or discourage and constrain, both the new start and any subsequent growth and development. The quality of the EFCs is directly influenced by governmental policy, and therefore GEM’s NECI can be a useful strategic tool for policy decision makers that are seeking to cultivate entrepreneurship, build a robust entrepreneurship ecosystem and empower entrepreneurs.”
Access the full report via this link.
Global Entrepreneurship Monitor (GEM) is a consortium of national country teams, primarily associated with top academic institutions, that carries out survey-based research on entrepreneurship around the world. GEM is the only global research source that collects data on entrepreneurship directly from individual entrepreneurs! GEM’s Adult Population Survey (APS) provides analysis on the characteristics, motivations and ambitions of individuals starting businesses, as well as social attitudes towards entrepreneurship. The National Expert Survey (NES) looks at the national context in which individuals start businesses.
In numbers, GEM is:
- 24 years of data
- 3,600,000+ GEM Adult Population Survey interviews since 1999
- 173,000+ respondents in the 2022 Adult Population Survey
- 2,000+ expert interviews for the 2021 GEM National Expert Survey
- 120+ economies since 1999
- 370+ specialists in entrepreneurship research (GEM National Team members)
- 300+ academic and research institutions
- 200+ funding institutions
- 1,000+ publications in peer reviewed journals
GEM began in 1999 as a joint project between Babson College (USA) and London Business School (UK). The consortium has become the richest resource of information on entrepreneurship, publishing a range of global, national and 'special topic' reports on an annual basis. www.gemconsortium.org.