In a pioneering move that provides a comprehensive dataset on entrepreneurship globally, Shopify has beta launched the Shopify Entrepreneurship Index. This tool will afford small businesses a reliable source for data and insights on entrepreneurship across 40 countries and all U.S. states, marking an important step towards understanding the economic impact of entrepreneurs.
The Shopify Entrepreneurship Index tracks economic impact, the fastest growth, and the most substantial contributions from entrepreneurs within Shopify’s ecosystem on national economies. The data-rich index promises to inform smart policies, inspire leaders, and ultimately stimulate the power of entrepreneurship.
In 2022 alone, Shopify entrepreneurs supported 5.2 million jobs, generated $27.7 billion of exports, contributed $229.3 billion to GDP, and created $490.5 billion in economic activity. These figures are set to grow with the Index updating quarterly.
At the head of the Index was the U.S., which saw an 11% increase in total jobs supported since 2021. Notably, the top-ranked state was Delaware, followed by Wyoming and California. Eastern European countries like Lithuania and Romania took second and third places respectively, highlighting the importance of financial literacy, entrepreneurship, and new technologies in facilitating global competitiveness.
“Entrepreneurs are the fuel that drives economies forward. They create jobs. They anchor communities. They make an impact that goes far beyond their own business,” said Harley Finkelstein, President of Shopify.
The Index has found the entrepreneurial trend to be particularly strong in rural regions of the U.S., with nearly a third of Shopify entrepreneurs building their businesses outside major cities, capitalizing on lower living costs and potential state-offered incentives.
Despite macroeconomic uncertainty and conflict in Ukraine, European entrepreneurship has proven resilient. Lithuania, Romania, and the Czech Republic all made it to the Index’s top ten, suggesting a shift of the entrepreneurial landscape in Europe from West to East.
In Asia, Japan has emerged as an entrepreneurship hub, claiming the 10th spot on the Index. With the APAC region growing as a hub for entrepreneurship, Japan’s pro-business agenda, focus on cross-border opportunities, and an improved funding environment for small businesses is noteworthy.
Dr. Gary Dushnitsky, Associate Professor of Strategy and Entrepreneurship at London Business School, has recognized the value of this initiative. He said that it “serves many benefits,” especially as it allows for “the tracking of trends over time, providing important insights into the state of entrepreneurs.”