Global Entrepreneurship Monitor Project Research Articles

The impact of job security on entrepreneurial activities: The case of Sultanate of Oman

Purpose — The main goal of this study is to determine the relationship between job security and entrepreneurial activities.Method — This study used the quantitative method and secondary data in this investigation. The questionnaire was collected from 96 entrepreneurs for the sample size, where the collected data is from the Global Entrepreneurship Monitor (GEM) project database in Oman. The Smart-PLS technique’s simple regression method was employed to analyze data.Result — The empirical result found that there is a significant link between job security and entrepreneurial activity. In addition, job security makes the entrepreneur develop long-term strategic plans. In general, the government orientations in Oman 2040 vision support entrepreneurship and support openness, while Oman 2040 vision wants to reduce the contribution of oil revenues and raise the contribution of non-oil revenues.Contribution — This research contributes to the existing literature by improving the understanding of the significance of job security in improving entrepreneurial activity practices for entrepreneurs' projects. Furthermore, the finding provides empirical evidence of the ability of job security to be a valuable instrument for sustainable entrepreneurial activity.

Entrepreneurship and Economic Growth: The Moderating Role of Governance Quality

The role of institutional quality is important for the development of entrepreneurship and economic growth. With this question in mind, it is crucial to understand why some countries have higher economic growth and more entrepreneurial activity than others, and what factors determine the relationship between entrepreneurship and growth. Hence, the aim of this research is to identify the moderating effect of governance quality in terms of 6 sub-indices, including voice and accountability, political stability, government effectiveness, regulatory quality, rule of law and control of corruption based on a sample of 54 countries participating in the Global Entrepreneurship Monitor (GEM) project during 2008–2020. The results show that the quality of governance increases the positive relationship between entrepreneurial activity and economic growth. In particular, all sub-indicators of governance quality seem to be moderators between entrepreneurship and economic growth. This study has implications both from a theoretical point of view (promoting the application of institutional economics in entrepreneurship–growth nexus) and from a practical point of view (providing insight into policies that improve the governance quality) promoting entrepreneurial activity and economic growth.

The Explanatory Power of Individual-Level Motivators for Entrepreneurship in Predicting Entrepreneurial Activity: a Cross-Country Investigation

Entrepreneurial activity is a key indicator of economic growth and development across countries. Governments, education institutions, and the non-for-profit sector all attempt to channel resources into communities to enhance entrepreneurial endeavors. This analysis examines the predictors of entrepreneurial activity using representative samples of 50 countries from 2019 provided by the Global Entrepreneurship Monitor project. Further, the investigation assesses the relevance of cultural features in moderating relationships linking attitudes, self-efficacy, and exposure to entrepreneurial behaviors. The logistic regression results indicate the attitudes, exposure, and self-efficacy are all predictors of Entrepreneurship activity. Cultural influence or fear of failure do not moderate the associations linking attitudes or self-efficacy with entrepreneurial activity. Implications for this research include the development of robust education Entrepreneurship programs that increase learners’ exposure to real-world entrepreneurial successes.

Do You Need to be Risk-Tolerant to Become an Entrepreneur? The Importance of the Reference Point

Abstract The creation of new ventures involves a great deal of risk and uncertainty. However, research has been theoretically divergent and empirically inconclusive about the influence of individuals’ risk tolerance on entrepreneurial entry. In this paper, we argue that this relationship is contingent on the reference point of individuals, taking into account the human capital and the opportunity cost of individuals when they decide to start a venture. This approach allows us to clarify some of the previous mixed results in the literature. We use a sample of almost 600,000 individuals from 90 countries that have participated in the Global Entrepreneurship Monitor project between 2010 and 2014. Our results show that individuals with previous experience as entrepreneurs do not need to be so risk-tolerant to set up their own venture, while individuals with a job and/or a high educational level need to be especially risk-tolerant to become entrepreneurs.

ENTREPREURIAL SELF-EFFICACY AND THE LIKELIHOOD OF BEING SELF-EMPLOYED – A COMPARISON OF URBAN AND RURAL AREAS IN VIETNAM

A large body of entrepreneurship research has focused on the relationship between entrepreneurial self-efficacy and start-up activity. Yet, little is known about how the interplay of these mechanisms is moderated by informal institutional conditions (e.g., social traits in rural and urban regions). Particularly, Vietnam, a country with a socialist-oriented market economy, has emerged as one of the world’s most entrepreneurial countries. This study examines how the effects of individuals’ entrepreneurial self-efficacy on being self-employed are contingent on institutional environments (e.g., rural and urban areas). Statistical analyses of 2013 to 2015 data from the Global Entrepreneurship Monitor (GEM) project for Vietnam provide empirical evidences that entrepreneurial self-efficacy is significantly and positively associated with being self-employed, and that this effect is more pronounced for individuals in rural than those in urban areas. Moreover, the findings show that people in rural Vietnam are more willing to be self-employed than their peers in urban areas. This difference is explained by the distinct impact of the informal institutional variable, entrepreneurial self-efficacy (e.g., the knowledge, skills, and experience required to start a new business) that individuals living in rural areas may gain from entrepreneurship promotion and start-up programs supported by the Vietnamese leadership. Our findings have implications for national entrepreneurship programs and financial support for start-up projects in rural areas.

Gender differences at the main stages of entrepreneurship

This paper proposes to analyse the existing differences in women's and men's style of entrepreneurship. The examined the levels of women's and men's participation in entrepreneurial activity in modern national economies. The study dealt with the problem of determining the indicator values, characterizing the early stage of entrepreneurship, mature entrepreneurship as well as quitting business activities. The results of the survey, conducted in 59 countries, through the Global Entrepreneurship Monitor Project, were used as initial information. In the course of the research, nine indicators, characterizing such stages as start-up and mature entrepreneurship, were examined, along with the cessation of this activity. The results indicated that there was gender gap between the indicators of entrepreneurship in majority of countries, implying that women participated in it to a lesser extent than men.

Participation of Women and Men in Entrepreneurship in Various Countries

Purpose: The paper is devoted to the actual problem of the existing differences in women’s and men’s entrepreneurship. The aim of the research is to assess the prevailing levels of women’s and men’s participation in entrepreneurial activity in modern national economies. Methodology: The study dealt with the problem of determining indicator values characterizing the early stage of entrepreneurship; mature (sustainable) entrepreneurship, as well as quitting business activities. The results of the surveys conducted in 59 countries throughout the Global Entrepreneurship Monitor Project were used as initial information. Findings: In the course of the research, nine indicators characterizing such stages as start-up and sustainable entrepreneurship along with the cessation of this activity were examined. The study developed the functions that show the distribution of the indicators in 59 countries describing women’s and men’s proportions at three main stages of entrepreneurship. Research limitations: The study had limitations on empirical data due to the fact that only 59 countries were considered. Originality: The attained results have indicated that there is a gender gap among the indicators of entrepreneurship in most countries, which means that women participate in it to a smaller extent than men. The methodological approach to assessing gender differences in entrepreneurship presented in the article can be applied in further research.

Unveiling the Dynamics of the European Entrepreneurial Framework Conditions over the Last Two Decades: A Cluster Analysis

Entrepreneurship is a theme of global interest, and it is the subject of investigations conducted by many researchers and projects. In particular, the Global Entrepreneurship Monitor project is a global project that involves several countries and years of surveys on entrepreneurship indicators. This study focuses on the 12 indicators of the entrepreneurial ecosystem defined by the Entrepreneurial Framework Conditions (EFCs). The EFCs are specifically related to the quality of the entrepreneurial ecosystem. Using clustering techniques, the present study analyzes how European experts’ perceptions on the EFCs of their home country have changed between 2000 and 2019. The main finding is the existence of significant differences between the clusters obtained over the years and between countries. Therefore, in theoretical terms, this dynamical behavior in relation to the entrepreneurial conditions of economies should be considered in future works, namely, those concerning the definition of the number of clusters, which, according to the internal validation measures computed in this work, should be two.

Specialization of entrepreneurs in the production of goods and the provision of services in modern economies

The study of the sectoral characteristics of early-stage entrepreneurial activity is one of the topical issues in modern research. The aim of the study is to assess the existing level of specialization of nascent entrepreneurs in modern national economies. The source of information for the analysis of the industry specialization of nascent entrepreneurs was the data provided in the Global Entrepreneurship Monitor project. The research methodology involved economics modeling with normal density function. The result of the computational experiment is the assessment of the indicator values characterizing the involvement of nascent entrepreneurs in the production and service sectors of national economies. A comparative analysis of the values of indicators for Russia and the foreign countries was carried out. It has been proved that nascent entrepreneurs in the countries under consideration are on average 4 times more likely to start activities in the service sector than in the commodity producing sector.

ОЦЕНКА ГЕНДЕРНЫХ РАЗЛИЧИЙ, ХАРАКТЕРНЫХ ДЛЯ ЗАВЕРШИВШИХ ДЕЯТЕЛЬНОСТЬ ПРЕДПРИНИМАТЕЛЕЙ

The aim of the study is to assess the current levels of termination of entrepreneurial activity by women and men in modern national economies. The study solved the problem of determining the values of indicators that characterize the termination of an entrepreneur's activity, as well as the impact on this process of such factors as unprofitability of production and lack of finance. The study used the results of surveys con-ducted in 59 countries during the implementation of the Global Entrepreneurship Monitor project as initial information. The results showed that in most countries there is a gender gap between the proportion of adult female entrepreneurs who have terminated their activities and the corresponding indicators for male entre-preneurs. It is proven that almost half of men and women in the countries under review have closed their business due to lack of profit or financial problems.

Recognition of entrepreneurial opportunity using a socio-cognitive approach

Drawing on social cognitive career theory and institutional theory, we develop a multilevel and integrative model to examine the influence of entrepreneurial cognition factors (entrepreneurial self-efficacy and outcome expectations) on entrepreneurial opportunity recognition (EOR). We also consider the moderating effect of contextual factors (normative and regulatory dimensions) on the relationship between entrepreneurial factors and EOR. We use the information provided by both the Adult Population Survey of Global Entrepreneurship Monitor project (2006–2016) and the Economic Freedom of the World 2018 Annual Report of the Fraser Institute. After combining both sources, we applied a multilevel analysis to a sample of 293,126 entrepreneurs from 97 countries. We found that self-efficacy and outcome expectations positively influence EOR. The regulatory and normative dimension positively moderates the relationship between self-efficacy and EOR, but the effects of outcome expectations on EOR are not reinforced by any institutional factors.

Determinants of the Propensity for Innovation among Entrepreneurs in the Tourism Industry

Tourism’s increasing share of Gross Domestic Product throughout the world, its impact on employment and its continuous growth justifies the interest it raises amongst entrepreneurs and public authorities. However, this growth coexists with intense competition; as a result of which, tourism companies must continuously innovate in order to survive and grow. This is evident in the diversification of tourism products and destinations, the improvement of business processes and the incorporation of new technologies for intermediation, amongst other examples. This paper expounds on the factors that explain the propensity for innovation amongst tourism entrepreneurs and it may help governments to promote innovation that is based on those determining factors. The hypotheses are tested using a logistic regression on 699 international tourism entrepreneurs, taken from the 2014 Global Adult Population Survey of the Global Entrepreneurship Monitor project. The propensity for innovation amongst tourism entrepreneurs has a statistically significant relationship to gender, age, level of education and informal investments in previous businesses.

Understanding social entrepreneurship: A cultural perspective in business research

This study investigates the cultural drivers of social entrepreneurship (SE), focusing on the way in which Global Leadership and Organizational Behaviour Effectiveness (GLOBE) affects social entrepreneurial activity (SEA) in different countries. The Global Entrepreneurship Monitor (GEM) and GLOBE project were used as data sources. Cultural values, regional affiliation, and economic development levels were used to cluster the selected countries. Correlations between values and operating SEA were checked for the entire sample, as well as for each of the three clusters. A positive correlation between ‘Gender Egalitarianism’ and narrowly defined operating SEA and negative correlation between ‘Uncertainty Avoidance’ and the aforementioned SEA was confirmed for all the countries, while the linkage between ‘Future Orientation’, ‘In-group Collectivism’, and operating SEA was partially verified. Research results suggest that culture is not sufficient to justify national differences in SE rates.

Demography of Early Entrepreneurship: Experience of Different Countries in Recent Years

The relevance of the study is due to the important role played by small and medium-sized businesses in the vast majority of modern national economies. The aim of the study is to assess the indicators describing the share of early-stage entrepreneurs belonging to five age groups in the total population of the respective age groups in different countries. The baseline data were the results of the Global Entrepreneurship Monitor project for 2018 among 48 countries and for 2017 among 54 countries. The estimation of differentiation of the considered indicators was carried out with the use of mathematical models representing density functions of normal distribution. The test showed that the developed functions well approximate the empirical data. On the basis of these functions, the average values and intervals of changes in the rates of early-stage entrepreneurial activity for most countries were determined. The study showed that the largest share of early-stage entrepreneurs in the total population is typical for people aged 25 to 44 years. The share of start-up entrepreneurs belonging to the group from 55 to 64 years is significantly lower. The study allowed to identify the countries, which are characterized by high and low values of indicators of early-stage entrepreneurial activity for these age groups.

Impact of high‐growth start‐ups on entrepreneurial environment based on the level of national economic development

AbstractIn this paper, we examine the relationship between the conditions of the entrepreneurial environment and high‐potential entrepreneurship according to the stage of economic development of the country.A structural equation model was designed based on data from the Global Entrepreneurship Monitor project, which contains information about 62 countries. Our results suggest that economic development and high‐potential entrepreneurship have a greater impact on the entrepreneurial ecosystem than entrepreneurial activity in general—with special effects on government programs, R&D transfer, and access to the domestic market. Notably, the level of influence of sustainable economic development and high‐potential entrepreneurship depends on the level of economic development of the country.

Country-level entrepreneurial attitudes and activity through the years: A panel data analysis using fsQCA

This paper presents a novel longitudinal study of entrepreneurial attitudes and activity. The study uses fuzzy-set qualitative comparative analysis (fsQCA) and builds on a previous cross-sectional cross-country investigation. Data for 2007–2017 from the Global Entrepreneurship Monitor (GEM) project are used to compare 108 countries in terms of entrepreneurial attitudes and activity. Considering each country-year GEM observation as a case (in fsQCA terms), causal recipes are found and then interpreted. Elucidation of the nature of the considered panel data set is given by (i) analyzing the causal recipes’ consistency across different years and (ii) investigating individual countries and their consistency across recipes and years. The study has policy management and future research implications based on the heterogeneous year-on-year relationships identified between entrepreneurial attitudes and activity across different countries. Panel fsQCA and year-specific cross-sectional fsQCA are also compared.

Do Entrepreneurial Attitudes Explain the Rising International Business Orientation in Developing and Emerging Economies?

Abstract This paper examines the characteristics that relate to a country’s entrepreneurial attitudes, perceptions, intentions, and aspirations for 17 developing and emerging economies during the 2002-2016 period. Many of those countries have recorded high economic growth rates and have increasingly become more outward-oriented in terms of both, exporting activities as well as direct investments abroad. The empirical analysis is based on survey data from the Adult Population Survey of the Global Entrepreneurship Monitor (GEM) project. We create an overall entrepreneurial attitude index (taking values between 0 and 100) from 6 underlying GEM entrepreneurial attitude indicators. In addition to examining relevant cross-country patterns and trends, a statistical analysis is conducted to test whether a more positive entrepreneurial attitude in a country is associated with a higher international business orientation. The findings indicate that there has been an increase in the overall entrepreneurial attitude index on average, but there are different trends among countries. Most importantly, the results show that improved entrepreneurial attitudes do not explain the increasing international business orientation that has been observed during the sample period. This suggests that in the developing and emerging economies under study other factors were strongly driving the expansion of international business activities.

New and growing firms' entrepreneurs' perceptions and their discriminant power in EDL countries

This work aims to analyse entrepreneur's perceptions about conditions to create new and growing firms and their significance in the economic development level (EDL) of countries. For this paper was used Global Entrepreneurship Monitor (GEM) project, in particular, the dataset NES 2013. To group the variables related to entrepreneur's perceptions about conditions to create new and growing firms a factor analysis was done and the variables more relevant are identified. Eight factors were obtained and renamed considering the entrepreneurial framework conditions (EFCs) defined by GEM. Next, in order to find out which variables contributed to economic development level of the countries, considering the entrepreneurs' perceptions, a discriminant analysis was carried out. With this study, we conclude that the levels of economic development are distinguished by the perceptions of entrepreneurs about new and growing firms.

Motives for Early-Stage Entrepreneurship in Modern Economies

The relevance of the study is due to the important role played by small and individual entrepreneurship in the vast majority of modern national economies. The aim of the study is to assess the indicators describing the ratio of voluntary, highly demanding and necessity-driven entrepreneurs in the total number of start-ups. The results of the Global Entrepreneurship Monitor project for 2018 were used as input data. Modeling of empirical data and evaluation of differentiation of the considered parameters was based on the development of normal distribution density functions. According to the results of modeling average values and change intervals of specific indicators were established. The originality of the work is associated with the assessment of the share of voluntary, highly demanding and necessity-driven entrepreneurs in the total number of early-stage entrepreneurs in 48 countries. The novelty of the study is due to the assessment of indicators characterizing the current motivation of entrepreneurs, as well as the ratio of the above mentioned indicators. The results of the study can be used in the formation of an entrepreneurial climate aimed at the development of a highly demanding business.

Social Entrepreneur: Same or Different from the Rest?

A social business responds to social problems usually ignored by institutions, mobilizing resources and generating employment. To gain more knowledge about this type of enterprise, the key factors that may influence social entrepreneurship are studied and compared with nonsocial entrepreneurship. This enables advances in the scientific literature and the design of more effective policies that encourage the creation of social enterprises. To achieve this goal, after delimiting the area of study, a sample of 25,631 entrepreneurs in 59 countries was used; 9792 of these are social entrepreneurs collected by the Global Entrepreneurship Monitor project in 2015 when a special issue focused on this topic. The results show that the majority of the factors that determine the decision to undertake nonsocial entrepreneurship also condition the individual to undertake social entrepreneurship, although the nature of their relationship or the intensity of the influence changes.