Global Entrepreneurship Monitor Survey Research Articles

Born Globals and Born Sustainables: Motives of Accumulating Wealth and of Making a Difference in the World

Abstract Background/Purpose This study investigates the distinct entrepreneurial motivations driving export activities and sustainability pursuits in Slovenian businesses, with a particular focus on differences between newborns and mature enterprises. The study proposes that entrepreneurs who prioritize wealth accumulation are more likely to engage in export activities, particularly those running startups, under the pressures of global trade. Conversely, in light of the shifting cultural values towards sustainability, it is hypothesized that entrepreneurs who are committed to making a difference in the world will be more inclined towards sustainability engagement, a tendency that may be more pronounced in startups. Methods To test these hypotheses, linear regression modelling, using data collected from the Global Entrepreneurship Monitor survey of businesses in Slovenia was employed. Results Newborns, in comparison to mature businesses, are more engaged in both exporting and sustainability pursuits. Interestingly, the motives behind these activities differ significantly. Exporting is primarily driven by the pursuit of wealth accumulation, while sustainability engagement is motivated by the desire to make a positive difference in the world. Conclusion These findings provide valuable insights into the unique characteristics of internationalization and sustainability pursuits in startups versus mature businesses. They highlight the role of distinct entrepreneurial motivations in shaping business practices, contributing to the literature on entrepreneurship and business sustainability.

Public administration and new venture startups: The association between economic development and the role of bureaucracy in startup activity

ABSTRACT Using public administration theory, we examine whether professionalized or closed bureaucracy are associated with individual participation in startups and whether these associations are contingent on the level of economic development of a country. We use a novel cross-national 2015 dataset of bureaucratic structures and a sample of 106,818 individuals from 22 countries from the Global Entrepreneurship Monitor survey. Our findings indicate that both closed and professional public administrations lower the odds of being in a startup. Furthermore, we find that the underlying economic conditions within countries can moderate these relationships. Specifically, our results indicate that the negative relationship between both closed and professional public administrations and the odds of being in a startup is amplified in low-income countries.

Effect of self‐perceived cognitive factors on entrepreneurship development activities: An empirical study from Oman global entrepreneurship monitor survey

Effect of <scp>self‐perceived</scp> cognitive factors on entrepreneurship development activities: An empirical study from Oman global entrepreneurship monitor survey

Does gender equality bridge or buffer the entrepreneurship gender gap? A cross-country investigation

PurposeGender equality levels opportunities for men and women and reduces the initial capital constraints women often face, and yet as entrepreneurship opportunities for women open up in more developed and egalitarian societies, fewer women are choosing entrepreneurship. This paper explores this contradiction as it relates to female economic and political participation in the context of business regulation efficiency.Design/methodology/approachDrawing on panel data from 89 countries from the Global Entrepreneurship Monitor survey and the Global Gender Gap report, we use random effects regression to examine relationships. Analyses included 252 country-years, and all data used during analyses were at the country level.FindingsResults suggest that equality in economic participation narrows and political participation widens the entrepreneurship gender gap, but a country's business regulation efficiency moderates both relationships negatively.Research limitations/implicationsThis study does not distinguish opportunity- and necessity-driven entrepreneurship, and does not consider the survival rates of enterprises and their industries.Practical implicationsFindings are pertinent to policymakers interested in advancing female entrepreneurship. They also apply to female entrepreneurs who must begin to recognize the diversity in work-life preferences among women and men.Originality/valueA theoretical model is informed by two competing theories, suggesting that in the context of female entrepreneurship, removal of economic and political participation barriers, combined with business regulation efficiency, intensifies the entrepreneurship gender gap.

Regional entrepreneurial ecosystems in Chile: comparative lessons

PurposeThis paper aims to deal with different experts’ perceptions of entrepreneurial ecosystems (EEs) from central to non-central regions to evaluate if there was any evolution (or involution), comparing the results with those of a previous similar study on Chile from 2013, and it follows to replicate and improve our knowledge of the entrepreneurial opportunities.Design/methodology/approachOne of the Global Entrepreneurship Monitor surveys, the National Experts’ Survey, was applied to a sample ofN= 1,555 key informants in Chile at 11 regions. The author used non-parametric statistics to compare the differences between centrally and non-centrally located experts.FindingsThe results indicate an evolution of the Chilean entrepreneurial ecosystem in an effort to homologate the entrepreneurial opportunities at non-central regions since the last study published in 2013. The financial support and physical infrastructure conditions were perceived to be more favorable in central regions, whereas the general government policies and entrepreneurial education at primary and secondary levels were perceived to be more favorable in non-central regions.Originality/valueThis research aims to contribute to filling the gap from the regional EEs’ perspective in emerging economies by comparing the results of the study on Chile with data from the previous government (2007–2009) providing an updated study of it (2015–2018) using the entrepreneurial framework conditions. It is relevant because the government established the “StartUp Chile” program that positioned the country as an innovation hub in Latin America since 2010.

The Contrasting Effects of Ethnic, Cultural and Immigrant Diversity on Entrepreneurship and Job Creation

This paper is the first one to examine empirically whether ethnic, cultural and immigrant population diversity within countries is favourable for entrepreneurship and job creation. Building on existing, yet disjointed theories on diversity, the paper provides insights as to why different types of diversity may have different effects on entrepreneurship. We test our predictions using multilevel modelling and the Global Entrepreneurship Monitor survey of over 1.5 million people across 88 countries. We find that diversity boosts the number of start-ups and new businesses. Also, businesses hire more employees in countries that have a higher population share of skilled or unskilled immigrants due to skill complementarity. However, businesses are more likely to close down in countries with higher cultural or immigration diversity, likely due to market fragmentation. Our results show that small changes in diversity lead to significant changes in the probability of business survival and job creation. These results have important policy implications for countries seeking to toughen their immigration policies. Since societies will continue to become more diverse, considering the multiple dimensions of diversity will become ever more relevant for research and policymaking.

Engagement in international entrepreneurship: interactive effects of resource-based factors and institutional environments

PurposeIntegrating the resource-based view and institutional approach, this study aims to examine how resource-based factors and formal and informal institutional context interact in influencing the international engagement.Design/methodology/approachBased on the data from the Global Entrepreneurship Monitor surveys, this paper performs a multilevel estimation approach in which cross-level (random effects) moderation analysis is applied.FindingsThis paper offers new insights into the internationalisation by ascertaining the primary role of resource-based factors in influencing internationalisation. In addition, it reveals the differential contingent values of formal and informal institutions in regard to the relationship between resource-based characteristics and internationalisation.Practical implicationsThe research findings reveal the importance of the country-specific institutional system to drive early stage entrepreneurs’ intention to go international. In addition, the significant impacts of formal and informal institutions call upon policy-makers to improve institutional environments (e.g. government policies, governmental programmes, entrepreneurial finance, market openness, commercial and professional infrastructure, intellectual property rights, etc.).Research originalityThis research indicates that the degree of internationalization increases when entrepreneurs possess the necessary resources and under suitable formal and informal institutional environments.

The entrepreneurial profile after failure

PurposeThe purpose of this paper is to examine the profile of entrepreneurs who failed in previous businesses, but despite their initial failure, decide to start or maintain another business. Based on the literature, re-entrepreneurs present some unique characteristics that allow them to overcome and learn from their previous ventures. Moreover, following the institutional dimensions literature, the paper shows that these dimensions should also affect the prevalence and type of re-entrepreneurial profiles.Design/methodology/approachTraditional ANOVA and logistic regression analysis were used as a way to test several hypotheses. Moreover, decision trees were implemented to provide further insights with respect to the characteristics of the relationships under study. Data from the Global Entrepreneurship Monitor Survey (Adult Population Survey 2016 for Chile) is the main source of information.FindingsThe results of this paper show that for Chilean entrepreneurs, there is a different profile between those who fail and abandon and those who decide to start a new business after failing. These differences show that post-failure entrepreneurs behave like angel investors, have better business skills and are more experienced. Additionally, they are more likely to share ownership of their new business.Originality/valueThe paper contributes to the literature with empirical results that validate that failure determines special characteristics in entrepreneurs through a methodology that is relatively new in the community. Also, the paper discusses how institutions (institutional theory) could play a role in this phenomenon. This can help decision makers and the academic community better understand the nature of this type of entrepreneur and thus provide insights for more focussed public policies and better-informed business decisions.

Chinese entrepreneurship attributes: a comparative GEM data analysis

PurposeThe purpose of this paper is to compare influential factors of entrepreneurial activities over time in China and to compare China with other selected countries. The data are collected from Global Entrepreneurship Monitor (GEM). The method used is decision trees and chi-square automatic interaction detector (CHAID) analysis, which isolates important factors and examines entrepreneurship predictor importance.Design/methodology/approachThe method used is decision trees and CHAID analysis which isolate important factors and examine entrepreneurship predictor importance. The original contribution of this paper is that this is the first time where artificial decision trees are applied to data to isolate factors that influence business startups and used across countries for comparative purposes. It is also the first application of this model to Chinese GEM. CHAID trees and predictor importance show the value of motivations of people who have already started businesses and shed light on how public policy can be influential in promoting entrepreneurship.FindingsResults indicate that solid knowledge and skills of how to start a business and knowing someone who has already started a business are the most important factors in China and in most of the selected countries. Fear of failure is becoming less important for Chinese entrepreneurs over the years from 2003 to 2012. Results show that countries, including China, have to enhance skill and knowledge education if they want to promote small business entrepreneurship as a policy. The findings support human capital theory.Research limitations/implicationsThe limitations of this study are due to using aggregated data from GEM surveys, which do not allow the authors to examine individual or household behavior. The authors do not know the variance and the distribution of responses to the questions asked and the locations in which the surveys were conducted. Another limitation is that GEM data do not report regional variations which can be modeled. For future work, the authors suggest more detailed data availability which will lead to isolating entrepreneurial problems and highlighting relevant attitudes important to entrepreneurs.Practical implicationsBetter data collection is needed at household and regional levels to understand business starts and to promote entrepreneurship.Social implicationsSocial implication of this research is to find out effective ways to increase entrepreneurial activities, therefore creating job opportunities and boosting economic growth. Educational programs will also decrease disparity of opportunity and incomes between different geographical regions in the country. The original contribution of this paper is that this is the first time artificial decision trees are applied to data to isolate factors that influence business startups across countries.Originality/valueThe original contribution of this paper is that this is the first time where artificial decision trees are applied to data to isolate factors that influence business startups and used across countries for comparative purposes. It is also the first application of this model to Chinese GEM. CHAID trees and predictor importance show the value of motivations of people who have already started businesses and shed light on how public policy can be influential in promoting entrepreneurship. This research modeled the breakdown of reasons people would start a business by using GEM data surveys.

Individual‐Level Ambidexterity and Entrepreneurial Entry

This study examines the organizational drivers of entrepreneurial entry through the lens of individual‐level ambidexterity. We theorize that employees that both explore and exploit new activities within organizations are more likely to become entrepreneurs outside the organization. Multilevel analysis results from a large sample of Global Entrepreneurship Monitor survey data support this hypothesis. This study contributes to the entrepreneurship literature by highlighting the role of individuals' prior ambidexterity experiences in organizations as foundational building blocks of entrepreneurial entry. The study links entrepreneurship and ambidexterity theories with evidence that an individual's ambidexterity and entrepreneurial activities are related.

Unmasking the contributing factors of entrepreneurial activities among men and women in Ghana

PurposeUsing the 2010 Global Entrepreneurship Monitor (GEM) survey data, the purpose of this paper is to investigate the contributing factors of entrepreneurial propensity among males and females in Ghana.Design/methodology/approachUsing a measure of entrepreneurial propensity that takes into account individuals who are involved in starting a new business (nascent entrepreneurs) as a dependent variable and socio-demographic characteristics, and perceptual variables as explanatory variables, the study adopts robust empirical estimation techniques to examine how these variables influence the probability of starting a new business among men and women in Ghana.FindingsThe probability of being a male nascent entrepreneur is significantly dependent upon a wide range of factors including demographic, economic, perceptual and contextual elements, albeit with important variations across gender. An individuals’ subjective assessment of fear of failure in starting a business and of having the requisite entrepreneurial capabilities; the age of the individual; gender of the individual; work status and contextual factors matters for entrepreneurial propensity in Ghana. However, important differences exist in the drivers of entrepreneurial propensity for males and females with females’ entrepreneurship attributed largely to conditions of necessity relative to their male counterparts.Originality/valueThe main value of this paper is to use the GEM survey (which is nationally representative) for Ghana to analyze the contributing factors of the entrepreneurial propensity among men and women in Ghana.

The motivation index of entrepreneurial activity and institutional environment

«Вестник Санкт-Петербургского университета. Экономика» — научно-теоретический рецензируемый журнал, обобщающий результаты исследований ученых всего мира в различных областях науки, включая мировую экономику, историю развития экономики и экономической мысли, финансы, кредит и страхование, теорию и практику управления, статистику и учет, экономико-математическое моделирование.

Characteristics of high-growth entrepreneurs in Latin America

Scholars and governments presumed that growing the rate of entrepreneurs would naturally result in economic and job growth, and entrepreneurship has widely been viewed as an important tool for developing economies. Yet recently scholars have questioned the empirical evidence regarding the actual contribution of entrepreneurship to economic development. Recent contributions to the field suggest that not all entrepreneurial activity has a positive effect on economic growth in developing regions. The Theory of Planned Behavior (TPB) provides a unique lense in assisting the predictive capability of entrepreneurial motivation. In this research, we focus on what factors influence the motivation of some entrepreneurs to seek a high-growth model as these growth oriented entrepreneurs, usually associated with opportunity-motivated firm founding, are the most likely to actually create jobs in developing countries. We utilize motivation for founding, five entrepreneurial competencies and three firm characteristics to predict growth expectations of entrepreneurial growth expectations. Leveraging responses to the Global Entrepreneurship Monitor survey from more than 100,000 entrepreneurs in 19 Latin American countries, we discovered the existence of a triple interaction effect amongst opportunity-based entrepreneurs with higher levels of education and an export orientation and their growth expectations. In discussing the results, we reflect on the public policy implications for promoting the desired types of entrepreneurship in developing regions.

Stabilizing institutions for new venture investment decisions

Purpose– This paper aims to examine the relationship between aspects of a country’s institutional environment and entrepreneurial investors’ overall rate of return.Design/methodology/approach– Specifically, monetary stability and property rights are tested against both entrepreneurs’ and angel investors’ expected financial returns and payback periods, respectively. Data from the Global Entrepreneurship Monitor survey including years 2004 through 2006 and encompassing 50 countries are aggregated and examined using random coefficient multilevel modeling.Findings– We find that strong property rights encourage both angel investors and entrepreneurs to invest in new ventures with longer payback periods and encourage angel investors to invest in ventures with lower expected financial returns.Practical implications– This suggests that one key to increasing entrepreneurial investment in a country is to guarantee strong property rights. Therefore, both entrepreneurs seeking funding and countries seeking entrepreneurs should incorporate property rights issues into their decision-making.Originality/value– This finding moves the “attracting entrepreneurs” conversation beyond the typical tax-abatement, infrastructure building, business cluster recommendations prevalent in academic and professional literature and points to one of the more fundamental reasons entrepreneurial “cultures” develop some places, but not others.

Technology use and availability in entrepreneurship: informal economy as moderator of institutions in emerging economies

This paper investigates the contextual influences of institutions on the use of latest available technologies by early stage entrepreneurs in emerging economies. Hypotheses are developed and then tested using multi-level modeling techniques on a dataset covering entrepreneurs in 20 emerging economies. We utilized 10,431 individual-level responses from the Global Entrepreneurship Monitor survey from 2002 to 2008 and complemented it with data on country-level institutions such as the size of a country’s informal economy, intellectual property rights (IPR) regimes obtained from the Index of Economic Freedom and inward foreign direct investment (FDI) from the World Bank Group. Results on the direct effects suggest that levels of FDI negatively influences the use of latest technology by entrepreneurs in emerging economies, while the moderation effects of informal economy suggest that as its size increases (1) the negative effects IPR on the use of latest technology by entrepreneurs strengthens, and (2) the negative effects of FDI on the use of latest technology strengthens. These findings support the overall proposition that the size of a country’s informal economy is an important moderator of institutional influences on technology use by entrepreneurs in emerging economies. More generally, the study proposes that institutions may not have the same effects on entrepreneurs in emerging economies that might be expected in developed countries, suggesting that future research should take the level of socio-economic development of a country into account when theorizing the role of institutions.

Inbound foreign direct investment and domestic entrepreneurial activity

There is an interesting and lively debate going on in the academic literature intersecting trade policy and entrepreneurship. Several studies have shown that inbound foreign direct investment (FDI) has a negative effect on rates of entrepreneurship, while others find the opposite – a higher rate of new firm creation associated with increased inbound FDI. We study the phenomenon using a cross-country analysis of data on entrepreneurs from 38 countries and from 2001 to − 2008. Results indicate that inbound FDI has negative associations with five types of entrepreneurship (nascent, new, early-stage, established, and high-growth) measured by the Global Entrepreneurship Monitor survey. In our discussion, we argue that our study supports the contention that studies counting new limited liability company registrations do not always measure the same thing as entrepreneurial entries (self-reports), leading to different, even opposite results when subjected to empirical analysis.

The effects of demographic, cognitive and institutional factors on development of entrepreneurial intention: Toward a socio-cognitive model of entrepreneurial career

Upon a well-established theoretical foundation Social Cognitive Career Theory; Lent, Brown, and Hackett (J Vocat Behav 45:79–122, 1994; J Couns Psychol 47:36–49, 2000), this study examines the effects of cognitive, affective, social, demographic, and contextual factors on the development of entrepreneurial intention. To test the hypotheses, binary logistic regression analysis was conducted using data from Global Entrepreneurship Monitor survey in which 183,049 individuals nested within 54 countries that participated. Entrepreneurial self-efficacy beliefs and entrepreneurial career outcome expectations are significantly correlated with entrepreneurial intention. Mastery experience including previous business ownership, entrepreneurial activity as part of a regular job or investing in a venture, exposure to a role model, social persuasion through media, and fear of failure are significant sources of entrepreneurial self-efficacy. A moderate relationship exists between country-level institutional profile and the sources of self-efficacy.

Global Entrepreneurship Monitor (GEM) – outcomes of societal meaning in Estonia

Šiame straipsnyje apžvelgiamas besikeičiantis požiūris į verslumą, šio reiškinio paradigmas bei su šia sritimi susijusius tyrimus. Istoriškai verslumas buvo suprantamas kaip vieno žmogaus pelninga veikla rizikuojant asmeniniu turtu. Tačiau modernioji reikšmė yra daug platesnė. Šiuolaikinė verslininkystė apima ne tik pelno siekimą, bet ir galimybes spręsti socialines bei visuomenines problemas, siekiant socialinės naudos. Straipsnyje pateikiami tyrimo duomenys apie socialinės verslininkystės veiklą Estijoje, o šiam tyrimui atlikti buvo naudojama Globalios verslumo stebėsenos (GVS) tyrimo metodika. 2012 m. GVS tyrimas parodė, kad Estijos gyventojų įsitraukimas į socialinį verslumą (26,2 proc.) yra dvigubai didesnis nei į tradicinę verslininkystę.

Are Third Age Entrepreneurs Innovative? Evidence From GEM Data

This article examines the innovativeness of third age entrepreneurs compared to other categories of entrepreneurs. The empirical study was conducted on a database of 69054 entrepreneurs in 64 countries over the period 2001-2008, drawn from the Global Entrepreneurship Monitor survey. The results show that older entrepreneurs are less innovative than younger entrepreneurs, both in terms of product innovation and process innovation.

Which institutions encourage entrepreneurial growth aspirations?

We develop entrepreneurship and institutional theory to explain entrepreneurial growth aspirations across individuals and institutional contexts. Our framework generates hypotheses at the national level about the negative impact of higher levels of corruption, weaker property rights and greater government activity on entrepreneurs' aspirations to increase employment. We further explore whether individual's social networks compensate for weaknesses in national institutions. We use the Global Entrepreneurship Monitor surveys in 42 countries for 2001–2006, applying a multilevel estimation framework to test our ideas. We find that the relationship between growth aspiring entrepreneurs and institutions is complex; they benefit simultaneously from strong government (in the sense of property rights enforcement), and smaller government, but are constrained by corruption. Social networks mediate some but not all institutional deficiencies.