Knowledge and entrepreneurship creation: what is the connection?

Abstract

PurposeWith this work, the authors seek to advance knowledge in this field mentioned above. The purpose of this paper is to stress the role of two groups of components related to individuals’ knowledge: the intrinsic base of existing knowledge and exposure to external knowledge.Design/methodology/approachThe present study examined the impact of knowledge in the business creation process. Data came from aggregated panel data at the country level taken from the Global Entrepreneurship Monitor over a five-year period (2009-2013).FindingsResults show that knowledge affects the business creation process. The research identifies the following factors as influential: detection of capabilities, entrepreneurial experience, and experience investing in other firms.Research limitations/implicationsThe limitations of the research relate to the data aggregation at the country level. Future research should examine disaggregated GEM data for the three economic stages at the classification level.Practical implicationsThe perception of self-efficacy appears to be critical in understanding the planning of intentional behavior because of its influence on the formation of intentions through situational perceptions of viability.Originality/valueGenerally, the literature that emphasizes the role of knowledge and entrepreneurship in small firms is theoretically limited and focuses solely on the role of knowledge in the decision to start a business.