Entrepreneurship Monitor Adult Population Survey Research Articles

Businesses create more jobs in countries with higher share of immigrants because of skill complementarity

PurposePast and recent immigration flows have made societies increasingly more diverse, with important implications for the economy. This article investigates the empirical relationship between ethnic, and birthplace immigration diversity on job creation and entrepreneurship.Design/methodology/approachWe use multilevel modelling and the Global Entrepreneurship Monitor adult population survey across 60 countries from 2001 to 2018.FindingsAs earlier literature, we find that people have a higher probability of becoming entrepreneurs in more ethnically diverse countries. Nonetheless, businesses located in more ethnically diverse countries hire fewer employees. Businesses, on the other hand, create more jobs in countries with a higher proportion of skilled and unskilled immigrants due to skill complementarity.Research originalityContrary to commonly held views, our findings suggest that ethnic and immigration diversity have opposing effects on entrepreneurship and provide important insights into the debate over the economic impact of immigration.

Entrepreneurial Intention to Business Start-Up: Evidence from Asia

The purpose of the study is to explore the relationships between perceptual variables and entrepreneurial intention among 13 Asian economies, and to depict the differences in the relationships among three types of Asian economies (factor-driven, efficiency-driven, and innovation-driven). Data were drawn from the 2015 Global Entrepreneurship Monitor Adult Population Survey (GEM APS) data set. Based on the cognitive theory, relevant research questions were developed, and the data were analysed through the logistic regression model. For the case of 13 Asian countries (full sample), except social status and respect, all perceptual variables are significantly related to entrepreneurial intention, and fear of fail found a negative and significant relationship. In sub-sample analysis, we have observed that regarding risk-taking, career choice, and social status, there are some significant differences among the three types of economies. The study contributes as the first attempt on Asian samples (full) from the GEM dataset and it is also the first attempt where three types of Asian economies were analysed.

A springboard for entrepreneurs? Gig and sharing economy and entrepreneurship in Russia

PurposeThe growing popularity of gig and sharing economy changes not only consumption models but also employment patterns. This study aims to analyze the potential entrepreneurial nature of gig and sharing economy initiatives. As such, the authors compare the entrepreneurial intentions of gig and sharing economy workers to the general population. Further, the authors consider commonalities and differences in terms of the driving forces of both intentions to start-up and participation in gig and sharing economy, treating them as connected phenomena. Finally, the authors look into gig and sharing economy experience as a direct antecedent to entrepreneurial intentions formation.Design/methodology/approachThe empirical settings for this study are derived from the sample of 1,257 individuals who participated in the Global Entrepreneurship Monitor Adult Population Survey 2018 in Russia. Methodologically, the authors rely on analysis of variance-test and binary logistic regression analysis to test the study hypotheses.FindingsThe results indicate that entrepreneurial intentions of gig and sharing economy workers are significantly higher when compared to the general population. In terms of antecedents to gig and sharing economy participation and startup intentions, similar effects of age, entrepreneurial social capital, prior entrepreneurial exit and intrapreneurial experience were revealed, while perceived self-efficacy was associated only with engagement into digital platforms. Finally, gig and sharing economy experience showed significant and positive effect on entrepreneurial intentions formation.Originality/valueThis study represents a first substantive effort to systematize antecedents to gig and sharing economy participation through an entrepreneurship perspective. Beyond that, this research adds to the contextualization of entrepreneurship literature stream, further defining the mechanism of entrepreneurial intentions formation in empirical settings of an emerging market with a relatively low propensity of population to develop intentions to start-up.

Factors of Early-Stage Entrepreneurial Aspirations in Asia Pacific Economies

This paper directly explores of the determinants of growth aspirations for the early-stage entrepreneurs in Asia Pacific economies. By studying the relationship between five orientations of the early-stage entrepreneurs and their growth aspirations, this study can provide a comprehensive understanding to stimulate the entrepreneurial activities in examined countries. The data source is extracted from a sample of firms in 14 Asia Pacific economies participated in the 2015 Global Entrepreneurship Monitor Adult Population Survey. This study employs the binary logistic regression with a dummy variable of country orientations. The results demonstrate no significant relationship between innovative orientation, entrepreneurial probability and the firms' growth aspirations. The updated technology and new product or service implementations can neither deteriorate nor stimulate the early-stage entrepreneurial companies' growth aspirations in Asia Pacific countries. The relations of international orientation, increase-income motivation and high-risk aversion with growth aspirations are significantly negative. This denotes an adverse influence of the internationalisation and the income growth expectations, and frustration to the Asia Pacific firms' growth aspirations. The results also indicate that firms from factor-driven and efficiency-driven economies have fewer growth aspirations than those from innovation-driven countries. Although having some limitations, this study sheds light on the entrepreneurship understanding of policymakers, academics and professional businesspersons.

Social and Cognitive Aspects of Women Entrepreneurs: Evidence from India

Executive SummaryIn the present era, the role of women entrepreneurship has been recognized in the process of economic development worldwide; hence, it must be promoted. Before designing any policy intervention to boost women entrepreneurship, it is important to understand the factors driving women to become entrepreneurs. The previous research on women entrepreneurship was preoccupied with performance of businesses run by women. This research aimed at answering the question: ‘What motivates or discourages the women of a society or an economy from becoming an entrepreneur?’ More specifically, this research investigates factors affecting the entrepreneurial propensity of Indian women through the lenses of cognitive and social capital perspectives. The present study is steered to enhance the understanding of women entrepreneurship at a niche level.Scholars have tried to explain factors affecting women entrepreneurship using myriad of approaches. However, these approaches have been criticized on methodological, conceptual and predictive ability weaknesses. Recently, cognitive and social capital perspectives have gained currency in explaining entrepreneurship. The purpose of this study was to examine the influence of cognitive factors—opportunity perception (Hypothesis 1), risk perception (Hypothesis 2) and perceived capabilities (Hypothesis 3)—and social capital factors—social networks (Hypothesis4) and informal investment (Hypothesis 5)—on women’s entrepreneurial propensity in India, a developing country.A data set of Global Entrepreneurship Monitor Adult Population Survey including a sample of 1305 Indians was used and binary logistic regression technique was employed to analyse the data. The finding shows that the entrepreneurial opportunities have no significant influence on women entrepreneurship; risk perception discourages women from becoming entrepreneurs, and perceived capabilities influence the decision of women to engage in entrepreneurship; social network motivates women to be entrepreneurial, and being an informal investor encourages them to start their venture. Surprisingly, we do not find support for opportunity perception. Therefore, policymakers should pay more attention to these factors of perception and social networks so that, the propensity of a woman to become entrepreneur would be increased.

An innovation gap between family and non-family businesses: a case study of post-transition economies

We empirically explore the differences in innovativeness between family and nonfamily businesses in selected post-transition economies. The data for Bulgaria, Croatia, Poland, Slovakia and Slovenia are derived from the 2018 Global Entrepreneurship Monitor Adult Population Survey. We build a binary logistic regression model. Results suggest that family businesses are less likely to be innovators as compared to the non-family businesses but, after including a combination of individual and environmental/institutional factors into the model, being a family business is not significant when comparing innovative and imitative businesses. We also find that gender, age, education, perceived opportunities and perceived entrepreneurial skills are not significant indicators of business innovativeness within the investigated sample.

What explains the degree of internationalization of early-stage entrepreneurial firms? A multilevel study on the joint effects of entrepreneurial self-efficacy, opportunity-motivated entrepreneurship, and home-country institutions

Integrating recent theories of entrepreneurship with new institutional economics, we develop a multilevel model to deepen our knowledge of how micro-level entrepreneurs’ personality and motivational antecedents interact with macro-level home-country institutions in determining internationalization by early-stage entrepreneurial firms. Data were collected from Global Entrepreneurship Monitor Adult Population Survey, GEM National Expert Survey, and the World Economic Outlook Database for the year of 2014. The results show that the personality trait of entrepreneurial self-efficacy contributes positively to the degree of internationalization via mobilizing opportunity-motivated entrepreneurship and that home-country formal institutions strengthen the above relationship of such young entrepreneurial firms.

International Orientation of early-stage Entrepreneurs in the Balkan region – The age perspective

The main objective of our study is to analyse the relation between early-stage entrepreneurs' age and their international orientation in the Balkan region economies, which are facing increasing globalisation and an ageing population. Based on the existing theory, we link the international orientation with some additional influencing determinants, such as the entrepreneurs' innovativeness, their growth aspirations and the financial resources required. Our results underline the importance of institutional frameworks and the moderating effects of age and these influencing determinants, on international orientation. Accordingly, we emphasise the significance of associating explanatory variables with the early-stage entrepreneurs' age. Data from six countries in the Balkan region were obtained from the year 2015 Global Entrepreneurship Monitor Adult Population Survey. The study contributes to a better understanding of the international orientation of senior (in terms of age) early-stage entrepreneurs in the Balkan region. Given the changes that have occurred with increasing globalisation and an ageing population, the concept of this particular group of entrepreneurs is important for national and regional policy makers.

The changing form of overconfidence and its effect on growth expectations at the early stages of startups

In this article, we attempt to explain the failure of many studies to show a link between entrepreneurs’ beliefs in their entrepreneurial skills and the actual or expected growth of their venture. By using Frese and Gielnik’s action-characteristics model of entrepreneurship as an analytical framework and analyzing Global Entrepreneurship Monitor Adult Population Survey data, we show that entrepreneurs’ perceived entrepreneurial skills are consistently inflated over the different phases of the startup, albeit in different ways. Depending on the typical form of overconfidence, the link between skill beliefs and growth expectations may be mediated by expectations about competitive advantages. Moreover, the huge drop in growth expectations is not associated with a drop in perceived skills; instead other entrepreneurial expectations also become more realistic and their effect strengthens with experience.

Entrepreneurial ecosystem conditions and gendered national-level entrepreneurial activity: a 14-year panel study of GEM

Scholars note the importance of the entrepreneurial ecosystem in promoting new venture activity. Yet to date, limited focus has been given to its impact on female venturing. Accordingly, our study investigates if the entrepreneurial ecosystem influences the prevalence of male and female entrepreneurship over time. We analyze the effect of entrepreneurial ecosystems in 75 countries between 2001 and 2014 on the rates of entrepreneurship for men and women using aggregate data from the Global Entrepreneurship Monitor Adult Population Survey and National Expert Survey. Findings indicate that the prevalence in entrepreneurship is highest for women when the entrepreneurial ecosystem features low barriers to entry, supportive government policy towards entrepreneurship, minimal commercial and legal infrastructure, and a normative culture that supports entrepreneurship. Conversely, we find that prevalence rates for men are highest when there is supportive government policy but weak government programs aimed towards business creation.

Does past failure inhibit future entrepreneurial intent? Evidence from Ghana

PurposeThe purpose of this paper is to examine the relationship between past entrepreneurial failure and future entrepreneurial intentions. It also considers the moderating role of past entrepreneurial failure on the relationship between attitude, subjective norms and perceived behavioural control (PBC) and entrepreneurial intentions.Design/methodology/approachData from the Ghana Global Entrepreneurship Monitor Adult Population Survey (2013) are used to test the hypotheses developed after an extensive literature review. The empirical specification was estimated with a probit of standard form and marginal derivatives estimated for the purposes of interpretation.FindingsThe mean future entrepreneurial intent is 63.2 per cent of the sample with 75 per cent having failed in the past and 60 per cent never failed before. Also, only 20.9 per cent of the interviewed entrepreneurs have failed at a past entrepreneurial activity. Past entrepreneurial failure has a positive effect on future entrepreneurial intentions. The interaction between attitude and failure yields a positive effect on future entrepreneurial intentions. The same effects can be reported for the interactions between subjective norms and failure as well as PBC and failure.Originality/valueIn this study, the authors are able to show that the mean moderational effects are important but they can be deceptive. Rather, a decomposition helps the authors to disaggregate these effects to better understand the underlying mechanisms.

Predictors of entrepreneurial activity before and during the European economic crisis

The aim of this study is to analyze the role of individual characteristics and social norms as variables that explain early-stage entrepreneurial activity before and during the European crisis. We used the Global Entrepreneurship Monitor Adult Population Survey data from Southern European countries (Greece, Spain, Italy and Portugal) and Northern European countries (Sweden, Norway and Finland) in 2007, 2010, 2012 and 2013. We performed logistic regression analysis to identify the role of individual characteristics (self-efficacy, perceptions of opportunities, role model and risk perceptions) and social norms (desirable career choice, status and respect and public media) on the early-stage entrepreneurial activity (TEA). Results show that individual characteristics are the most important predictor of entrepreneurial activity, and this effect stays stable throughout the time of the crisis; and social norms have an absent or low effect on entrepreneurial activity, with slight fluctuations during the crisis. These results highlight the role of individual predictors on the entrepreneurial activity despite the macroeconomic environment, which empathizes the importance of education and training to promote the entrepreneurial mindset and attitude.

The competitiveness of established entrepreneurs in Balkan countries

Research contributes to a better understanding of the different levels of competition and highlights its determinants across Balkan region countries' established entrepreneurs. This paper aims to assess the relationship between companies' innovation activity, international orientation, growth aspirations about future employment and the level of competition they are facing. The data were obtained from the 2013 Global Entrepreneurship Monitor Adult Population Survey. Our analysis is based on a sample of 597 cases from five Balkan countries (Bosnia and Herzegovina, Croatia, Greece, Macedonia and Slovenia). We built a multinomial logistic regression model assuming that the criterion variable is a linear combination of the four predictors and five control variables. The findings show that established entrepreneurs who innovate by means of introducing new or unfamiliar products to all customers and in particular by using new technologies are overrepresented in markets with limited competition (blue oceans). Finally, younger managers and owners of established enterprises are facing with more competitors relative to older counterparts.

Growth aspirations of early-stage entrepreneurs: Empirical investigation of South-Eastern and Western European countries

We aimed to 1) estimate the associations between innovation and international orientation of early-stage entrepreneurs and their growth aspirations and 2) determine whether these associations differ across south-eastern European countries (SeECs) and western European countries (WECs). We used the data from the 2003–2008 Global Entrepreneurship Monitor Adult Population Survey for 3,098 SeEC and 3,626 WEC entrepreneurs. The results show that 1) a firm’s high level of competition inhibits its growth aspirations in both regions, albeit more so in SeECs; 2) innovative products/services stimulate firm growth aspirations in WECs only; and 3) international orientation stimulates firm growth aspirations in both regions, albeit more so in WECs.

Aspiracije po rasti, inovativnost in internacionalizacija zgodnjih podjetnikov

In this paper, we empirically assess the relationship between early-stage entrepreneurial firms’ growth aspirations and their innovative and international orientation. We obtained the data before the economic crisis from the 2003—2008 Global Entrepreneurship Monitor Adult Population Survey for eight southeastern European countries (SeEC) and five western European countries (WEC). The results show that a firm’s newness of its technologies used and its offer and international orientations inhibit growth aspirations. In the early stage, firms lack the resources, experience, skills, and networking necessary to grow. The extent of the negative relationships between growth aspirations and innovative and international orientation is bigger in WEC than in SeEC.

Consolidated Global Entrepreneurship Monitor Adult Population Survey: Audio of Presentation

The Global Entrepreneurship Monitor (GEM) research program was developed to provide harmonized comparisons among countries related to the level of participation in entrepreneurial activities.

A look back and ahead

Integrating recent theories of entrepreneurship with new institutional economics, we develop a multilevel model to deepen our knowledge of how micro-level entrepreneurs’ personality and motivational antecedents interact with macro-level home-country institutions in determining internationalization by early-stage entrepreneurial firms. Data were collected from Global Entrepreneurship Monitor Adult Population Survey, GEM National Expert Survey, and the World Economic Outlook Database for the year of 2014. The results show that the personality trait of entrepreneurial self-efficacy contributes positively to the degree of internationalization via mobilizing opportunity-motivated entrepreneurship and that home-country formal institutions strengthen the above relationship of such young entrepreneurial firms.