Puerto Rico early-stage entrepreneurship climbs 9% in 2024, GEM finds
Entrepreneurial activity in Puerto Rico continues an upward trajectory, with 24.3% of the population now involved in early-stage business development — representing a 9% increase over 2023 levels — according to the 2024 edition of the Global Entrepreneurship Monitor (GEM) study.
The research was conducted by the University of Puerto Rico’s Río Piedras Campus, with support from Banco Popular and the Department of Economic Development and Commerce (DDEC, in Spanish).
The upward trend is significant when viewed through a long-term lens: in 2013, only 8.3% of Puerto Ricans participated in early entrepreneurial activity. Among women, participation rose from 20% in 2023 to 22.3% this year.
The share of budding entrepreneurs — individuals in the earliest stages of launching a business — grew from 16.7% to 19.0%. Intentions to start a business within the next three years also rose sharply, from 37.1% to 46.5%.
“This study offers a clear vision of Puerto Rico’s entrepreneurial potential and reaffirms the commitment of the University of Puerto Rico Río Piedras Campus to innovation and the country’s economic development,” said Rector Angélica Varela-Llavona.
She credited the School of Business Administration’s faculty and students for producing valuable insights and recognized the contributions of Theany Calderón, Jairo Ayala, Segundo Castro, and Arleen Hernández.
However, the study also pointed to structural challenges. The percentage of the population with established businesses declined from 6.0% in 2023 to 4.6% in 2024, while the rate of discontinued ventures rose from 3.1% to 5.7%. Notably, 23.4% of these closures were due to opportunity-based reasons, including retirement or the sale of the business.
Demographic shifts continue to reshape the landscape. While younger adults (ages 18 to 34) saw a decrease in entrepreneurship, the segment of entrepreneurs aged 45 to 64 grew. Despite this increase, 46% of respondents over 45 said they believe there are insufficient resources and support structures available to help people their age start a business.
“This research highlights the need to continue strengthening the ecosystem to increase the number of new and established ventures,” said Calderón, lead researcher of the index. “Experts emphasize the need to achieve better connections, measure the impact of entrepreneurial activity with reliable metrics, and improve support for entrepreneurs outside the metropolitan area.”
Women’s access to entrepreneurial resources was rated above satisfactory, suggesting some improvement in gender equity within the ecosystem. The findings also reflect the perception that Puerto Rico offers relatively accessible market entry and strong educational support in entrepreneurship through universities and technical institutions.
Popular Inc. President Javier D. Ferrer emphasized the importance of entrepreneurship to the island’s economy.
“We firmly believe that Puerto Rico’s progress is closely tied to the drive of its entrepreneurial people. The GEM 2024 study confirms what we’ve been noticing: a more dynamic, diverse, and resilient business ecosystem,” he said.
“This study not only provides us with valuable data but also inspires us to continue building an island where entrepreneurship is synonymous with opportunity, growth, and transformation,” he added.
While metrics on early activity are encouraging, the study’s expert panelists noted that the overall entrepreneurial environment has weakened. Surveyed experts cited gaps in environmental and structural support for business owners, particularly in areas like regulatory efficiency, access to funding, and long-term sustainability.
The results were also analyzed during a panel discussion that included experts Mario Marazzi, Arleen Hernández, Héctor Jirau, Denisse Rodríguez, and Corina Camacho-Peinado. The panel, moderated by innovation consultant Nerma Albertorio, provided further context to the findings, highlighting strategies for improving ecosystem infrastructure and public-private collaboration.
The GEM study remains the most comprehensive international research project tracking entrepreneurship dynamics across more than 100 economies. It categorizes entrepreneurial activity by phase — budding, new, established, or discontinued — and evaluates its innovation potential, growth impact, and social dimensions.
“The work of universities and other post-secondary institutions in entrepreneurship education, as well as the ease of entering markets, continue to stand out,” Calderón said. “But if we want to sustain and scale these positive trends, the ecosystem must evolve to meet the needs of both emerging and experienced entrepreneurs.”
