- Shopify launches the world’s first database on global entrepreneurship
- The US ranks first in the Index, followed by Lithuania, Romania, and the UK
Shopify has announced a new initiative – the Shopify Entrepreneurship Index. The database is the first of its kind, covering global entrepreneurship across 40 countries and all US states. This project aims to measure the economic impact of entrepreneurs within the Shopify ecosystem, with a specific focus on growth and contribution.
From this Index, we can see how much money is made thanks to Shopify entrepreneurship around the world. But what about how much money Shopify itself makes? We’ve reported on this in our Website Builder Earnings and Website Builder Market Share articles.
Currently, the US ranks first in Shopify’s Index, followed by European countries: Lithuania, Romania, and the United Kingdom.
Harley Finkelstein, the President of Shopify, said this of the groundbreaking index:
“Previously, there wasn’t enough public data showcasing the superpowers and impact of entrepreneurship – and that’s why we’re launching the Shopify Entrepreneurship Index. Our goal is to give decision makers the insights they need to reduce barriers and make entrepreneurship even more accessible to everyone.”
Although just a beta launch, this is an exciting venture and innovative use of the data Shopify already has to hand. More data will be added each quarter.
The Power of Shopify Entrepreneurs
The Shopify Entrepreneurship Index identifies the countries or states where entrepreneurs impact their economy – whether through growth or economic contribution. In 2022 alone, Shopify entrepreneurs generated $490 billion in business activity. Wow!
Let’s take a closer look at the Index itself. At present, the US comes out on top thanks to its impressive statistics:
- 1.1 million jobs supported
- $7.3 billion exports powered
- $128.7 billion GDP impact created
- $270.8 billion business activity generated
This huge US growth is partly due to increases in consumer spending, investments, and exports. And, within the US, the majority of activity is delivered by Delaware, Wyoming, and California.
Eastern Europe dominates the rest of the top positions with Lithuania in second and Romania taking third place. The trio is shortly followed by the United Kingdom which ranks fourth.
The Index Methodology
But where does the data for the Shopify Entrepreneurship Index come from and how is it measured? The Index takes advantage of the company’s giant ecosystem of businesses, tapping into its own database across 40 countries and all US states.
Shopify specifically looks at the GDP impact, business activity impact, jobs supported, and exports generated. From there, Shopify compares these figures with relevant values from each country or state to accurately measure the economic growth of entrepreneurs.
Still curious about the Index’s purpose or benefits? Dr. Gary Dushnitsky, Associate Professor of Strategy and Entrepreneurship at London Business School had this to say on the initiative:
“This new report will be a valuable resource for a wide range of stakeholders, including academics, policymakers, and business leaders who are seeking data on the rising phenomenon of digitally-enabled entrepreneurs.”
Shopify hopes that the database will help “inspire smart policies” and inform leaders and decision-makers about the power of entrepreneurs.
The Index will be updated quarterly to ensure all data is as accurate and fresh as possible, helping the database stay on top of the evolving nature of global entrepreneurship. Dushnitsky goes on to support the regular updates since “it reflects the dynamic nature of entrepreneurship” and will “allow for the tracking of trends over time, providing important insights into the state of entrepreneurs.”
So, if you’re already a Shopify entrepreneur or you’re thinking about using its website builder to get started, maybe we’ll see how your business has impacted the Index’s data in the future!