Global Entrepreneurship Monitor Research Articles

Causal analysis of SDG achievements

The United Nations Sustainable Development Goals (SDGs) set common targets for countries all over the world for their economy and society. This research uses popular indices as antecedents (independent variables) to analyze the causal complexity of SDG achievements (outcome or dependent variable). For the antecedents, Inclusive Internet Index measures digital technology, Corruption Perception Index measures transparency and integrity, Global Innovation Index measures innovation, Global Entrepreneurship Monitor measures entrepreneurship, GDP measures economic growth, and Global Findex measures financial technology (fintech). It takes fuzzy set/Qualitative Comparative Analysis (fsQCA) as the research method and applies it to data spanning the years 2020 (30 common countries) and 2021 (28 common countries), respectively. The results show multiple relationships for both 2020 and 2021, and each relationship consists of multiple antecedents. In addition, the causal relationships of the two calendar years appear similar. Implications are discussed herein, and following the research results, countries with different competitive advantages can choose the proper causal relationship to facilitate their own SDG achievements.

SMEs' regional diversification: dynamic patterns and home market institutional determinants

PurposeThe authors seek to advance the understanding of small- and medium-sized enterprise (SME) internationalization at the regional level and examine the role of home market institutions in this process.Design/methodology/approachThe authors analyze hypotheses with data from SMEs in five country markets and from the Global Entrepreneurship Monitor. A cluster analysis establishes the regional diversification patterns (based on regional diversification scope, speed and rhythm) and a multinomial regression tests the effect of home market institutions on their adoption.FindingsThe results offer a refined picture of SME regional diversification by revealing three patterns: intra-regionally focused firms, late inter-region diversifiers and early inter-region diversifiers. They also suggest that the adoption of these patterns is determined by SMEs' home market institutions.Originality/valueThe authors develop a nuanced understanding of SME internationalization by building upon and expanding the regionalization rationale in the internationalization patterns literature. Additionally, the authors address the acknowledged, yet rarely investigated, country-level determinants of internationalization patterns.

The influence of entrepreneurship on economic growth in BRICS economies

This study employs correlation analysis and a fixed effects model premised on indexes extracted through principal component analysis to assess the effects of entrepreneurial attitudes and behaviour, and entrepreneurial framework conditions (EFCs) on economic growth in BRICS economies. For purposes of effectiveness, a panel dataset for entrepreneurial attitudes and behaviour, and EFCs indicators is pooled from the Global Entrepreneurship Monitor website, and one for gross domestic product (GDP) per capita, a proxy for economic growth, is sourced from the World Bank website over the period 2001-2021. The study reveals that there are statistically significant negative correlations between GDP per capita and ‘entrepreneurial intentions rate’, ‘perceived capabilities rate’, ‘perceived opportunities rate’, ‘governmental support and policies’, ‘taxes and bureaucracy’, ‘governmental programmes’, ‘internal market openness’, ‘physical and services infrastructure’ and ‘cultural and social norms’. Furthermore, entrepreneurial attitudes and behaviour positively impact GDP per capita, whereas EFCs have no significant influence on GDP per capita in BRICS economies.

The effect of high-growth and innovative entrepreneurship on economic growth

Scholars and policymakers have recognized the importance of entrepreneurship to enhance national development. Yet, it can be difficult to identify what type of entrepreneurship is relevant to promote. This article analyzes the contribution of high-growth and innovative entrepreneurship to country-level economic growth. The entrepreneurship variables used were derived from Global Entrepreneurship Monitor (GEM) microdata, enabling us to test alternative configurations of the indicators frequently used in the literature. We also construct an innovative entrepreneurship measure based on product innovation, new technology implementation, and export intensity. Our main findings reveal that innovative entrepreneurship is positively related to economic growth, while no relationship with high-growth entrepreneurship is suggested. Last, using Bayesian model averaging (BMA), we find innovative entrepreneurship and the total early-stage entrepreneurial activity to be robust determinants of economic growth.

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.

Can R&D Transfer and Market Openness Improve the National Export Rate? A Global Entrepreneur Perspective

R&D Transfer gives birth to an understanding of the importance of the role of the latest applied research in developing entrepreneurs to compete in the global market. The global market that continues to be dynamic allows the emergence of various access restrictions that make it difficult for entrepreneurs, so the existence of market openness is needed as an entry point for entrepreneurs into the global market. This study aims to solve the gap of a significant decrease in world export levels in 2020 by 2.1%. This problem is considered crucial because this is the worst decline in the last decade. The data in this study was taken through secondary data from the Global Entrepreneurship Monitor (GEM) and the World Bank from various countries on five continents in the 2019-2021 data period. The data is processed using Structural Equation Modeling (SEM) analysis instruments. This study empirically requires that the existence of R&D Transfer can encourage market openness to increase the export rate with a direct effect of 0.577. Thus, R&D Transfer has proven to be able to create new applied research and technology that encourages the creation of market openness for entrepreneurs so that they can compete in the global market and lead to an increase in the National Export Rate. Therefore, the practical implications of this study show that countries need to encourage the existence of R&D Transfer through the fulfillment of Physical Infrastructure and Government Support to increase market opening for increased exports.

Attitude towards business activity risk: evidence using logit models for two groups of OECD countries

PURPOSE – The low quality of current jobs around the world and their scarcity have led to the need to undertake. As a consequence of this, people have stopped being employees to becoming entrepreneurs. However, the specialized literature ensures that there are factors, attributed to people or not, that characterize this undertaking. DESIGN/METHODOLOGY/APPROACH – In this article, an approach is made to the issue of aversion to the risk of failure that a person faces when deciding to be, precisely, an entrepreneur. The information integrated by the reports of the Global Entrepreneurship Monitor (GEM) served as input so that, through the non-linear models of logit probability, it is verified, during the period 2001-2016, if the factors education, experience, knowledge, skills, age, among others, directly influence a person to decide to start a business. FINDINGS – The results obtained made it possible to detect and compare the most distinctive factors in each of these groups. Finally, for each group of countries, statistically significant variables and odd ratios that increase the probability that a person feels aversion to the risk of failing when starting a new business were detected. ORIGINALITY/VALUE – This article shows that when knowing the significant factors, in the two groups of countries analyzed, to know the aversion to failure of a person when they have decided to start a business, it was found that there are no great differences between the two profiles found.

Analysis of entrepreneurs’ motivations and role models for growth expectations in the time of coronavirus

The change in life and professional conditions in 2020 has impacted the growth expectations of new firms. Based on a sample of more than 20,000 people coming from the Spanish Global Entrepreneurship Monitor (GEM) for 2019 and 2020, we analyze the effect of entrepreneurs’ motivations and social role models on the growth expectations of new firms using a binomial logit model. The results show that, as a consequence of the institutional conditions caused by the COVID-19 pandemic, entrepreneurs only take into consideration the economic projections of the new firm in order to take the risk of hiring employees in the early stage of the firm’s creation. However, experienced entrepreneurs involved in the consolidating stage of the entrepreneurial process have more ambitious motivations, and take advantage of their knowledge derived from peer role models in order to face the new opportunities arising during the pandemic. The effect of motivations and role models on firms’ growth also differ between men and women.

Personal determinants of early-stage strategic entrepreneurship: an empirical comparison of Vietnam and Taiwan

PurposeThis research explores how individual factors drive early-stage strategic entrepreneurship (SE) in Vietnam and Taiwan. The authors extend SE and integrate knowledge spillover theory to gain insights into the relationship between individual factors and SE. The research highlights the importance of a dual process, which involves advantage-creating by innovation, as value creation and capture, and advantage-leveraging by growth and international expansion, as value retention and capture.Design/methodology/approachInnovation-oriented SE (ISE), growth-oriented SE (GSE) and internationalization-oriented SE (ITSE) are identified as new measures of SE. There are six hypotheses containing the effect of six personal characteristics have on SE. The authors employed logit regression to estimate the effect of independent variables on SE based on a pooled cross-sectional dataset drawn from Global Entrepreneurship Monitoring (GEM) in Vietnam and Taiwan during 2013–2018.FindingsOpportunity sensing, education, self-funding ability, startup knowledge and skills and startup experience are crucial to the engagement of at least one type of SE in Vietnam. In contrast, education, self-funding ability and start-up knowledge and skills are key factors in Taiwan.Originality/valueThis study contributes to the extension of SE at the individual level in the early phase of new venturing and the integration of knowledge spillover theory. In order to drive early-stage SE further, the authors recommend to prioritize learning from spillovers within and among organizations, industries and communities, as well as through quality institutions, in addition to the individual drivers.

Empirical analysis of the impact of entrepreneurial activity on economic growth of Global Entrepreneurship Monitor (GEM) countries

Empirical analysis of the impact of entrepreneurial activity on economic growth of Global Entrepreneurship Monitor (GEM) countries

Entrepreneurial orientation across gender in Saudi Arabia: evidence from the Adult Population Survey (APS) of Global Entrepreneurship Monitor (GEM)

PurposeThe purpose of this study is to investigate the relationship between socioeconomic factors and entrepreneurial orientation (EO) across genders. The study also highlights the impact of cognitive and motivational factors on the EO in Saudi Arabia.Design/methodology/approachThis is a quantitative analysis based on the Adult Population Survey of 2016 conducted by the Global Entrepreneurship Monitor among a sample of 4,053 in the Kingdom of Saudi Arabia.FindingsThe results showed significant differences in most EO dimensions between genders. It was found that EO is positively related to gender, with more women intending to start a venture than men in the Kingdom of Saudi Arabia. Self-efficacy, motivation and social welfare motivational factors for EO are positively associated with the gender of the respondents.Practical implicationsThis paper illustrates the urgency to establish programs that support self-efficacy, motivation and social welfare to promote entrepreneurship among women in the Kingdom.Originality/valueThe study highlights the impact of cognitive and motivational factors on EO among females in Saudi Arabia.

Cognitions affecting innovation among generation Z entrepreneurs: the external enablement of digital infrastructure

PurposeThe current research aimed to investigate the external enablement role of Digital Infrastructures (DI) in the interplay of entrepreneurial cognitions and innovation.Design/methodology/approachData from the Global Entrepreneurship Monitor (GEM) and Digital Economy and Society Index (DESI) were used for analyses. This yielded a sample of 8,601 Generation Z entrepreneurs operating in 25 European countries.FindingsApplying hierarchical moderated regressions showed that socio-cognitive components of an entrepreneurial mindset (self-efficacy, risk propensity, opportunity identification) affect innovation among Generation Z entrepreneurs. More importantly, DI plays an external enablement role in the interplay of cognitions and innovation among Generation Z entrepreneurs.Originality/valueThis study contributes to the socio-cognitive theory of entrepreneurship by integrating an external enablement perspective into the study of cognitions and entrepreneurial outcomes (here, innovation). It contributes to the digital technology perspective of entrepreneurship by connecting the conversation about the socio-cognitive perspective of entrepreneurship regarding the role of cognitions in innovation to the conversation in information systems (IS) regarding technology affordances and constraints. This study extends the application of the external enabler framework to the post-entry stage of entrepreneurial activity and integrates a generational perspective into it.

Influences of Start-Up’s Financial Intermingling on Entrepreneurial Stress in Sustainable Family Businesses: Mediation Effect of Work–Family Balance

One factor affecting entrepreneurial success at the small-business start-up level is the impact on family life. This study examines the effects of intermingling financial resources on the quality of life of families operating businesses in South Korea. Based on the Global Entrepreneurship Monitor 2022 assessment, which ranks South Korea 9th out of 51 economies, South Korea emerges as a promising area for scholarly research in this area. The analysis results are as follows: First, when financial intermingling occurs (when family and business finances are merged to some degree), entrepreneurial stress was found to be higher. Second, financial intermingling between family funds and business finances increased entrepreneurial stress by impairing the work–family balance. Third, when one spouse is more dedicated to supporting start-ups, entrepreneurial stress caused by the pressure to use family funds as business finances is greater. As small-business start-ups often require creative means to generate primary financing, resource exchanges between families and businesses may sometimes be a regrettable necessity. However, if the potential downsides of resource exchange are ignored, and resource exchange frequently occurs over a long period of time, it can place significant stress on all parties and may adversely affect the sustainability of a family business.

Corruption and intrapreneurship

This work analyzes for the first time the impact of the perception of corruption on intrapreneurship. The Global Entrepreneurship Monitor (GEM) database and Transparency International information allowed us to implement a cross-country panel data analysis. The results show that the perception of corruption sands the wheels of intrapreneurship. The results take into account the low dispersion of the dependent variable and are robust to alternative proxies of corruption and different sets of control variables. As a further test, there is evidence of a quadratic relationship between corruption and intrapreneurship for less economically developed countries, which is indicative of differences in the aforementioned relationship for diverse levels of economic development.

An international study of early-stage entrepreneurship using global entrepreneurship monitor data

PurposeThe goal of this study is to identify and validate some selected determinants of early-stage entrepreneurial activity (ESEA) by assessing the impact of entrepreneurial knowledge and skills (EK&S), fear of failure (FoF), the social status of entrepreneurs (SSE) and entrepreneurial intentions (EI) on ESEA.Design/methodology/approachThe study utilised cross-sectional data gathered by the Global Entrepreneurship Monitor (GEM) team from 49 countries, with a total of 162,077 respondents. The data analyses involved correlation, simple regression and path analyses, with a specific focus on testing for mediated and moderated effects. To complement the statistical analyses, fuzzy-set qualitative comparative analysis was also employed.FindingsThe path analysis revealed EK&S as primary drivers of EI and ESEA. Also, EK&S moderated the effects of FoF on EI, and the inclusion of EI improved the model significantly. The fuzzy-set qualitative comparative analysis result showed that the presence of EI, EK&S, FoF and SSE were sufficient but not necessary conditions for ESEA.Practical implicationsThe tested model demonstrates the importance of EK&S and EI, as well as the need to mitigate the effects of the fear factor in promoting entrepreneurial activity. As such, the support of EK&S programmes seems justifiable.Originality/valueThe findings of this study provide a deeper insight into the intricate relationships that underlie entrepreneurial activity by utilising a combination of data analysis techniques.

Technological entrepreneurship in LA: weaknesses, actors and case study of the Artificial Intelligence Center - IA. Center, Chihuahua state

Technological entrepreneurship in LA: weaknesses, actors and case study of the Artificial Intelligence Center - IA. Center, Chihuahua state

Are greener start-ups of superior quality? The impact of environmental orientation on innovativeness, growth orientation, and international orientation

This paper merges the literature on green and high-quality entrepreneurship by introducing environmental orientation as an unrecognised characteristic of start-up quality and the three quality dimensions innovativeness, growth orientation, and international orientation. Entrepreneurship literature argues that only high-quality start-ups contribute to sustainable development and that a better understanding of what determines the quality of start-ups is required. Empirical research has recently shown that the environmental orientation of start-ups is one such determinant, as it significantly predicts their innovativeness. This paper pursues this novel research avenue on the importance of environmental orientation for start-up quality in two ways. First, this paper evaluates and extends this initial evidence on environmental orientation and innovativeness by examining a three times larger sample, covering additional countries and entrepreneurial stages. Second, this paper also analyses the impact of environmental orientation on the quality dimensions of growth orientation and international orientation. Investigation using Global Entrepreneurship Monitor data on 9650 entrepreneurs from 51 countries revealed that start-ups with a higher environmental orientation are of superior quality regarding their innovativeness, growth expectations, and exports. These results remain robust for start-ups at different entrepreneurial stages, and tests employing different methodological approaches and variable definitions. However, the categorisation into factor-driven, efficiency-driven, and innovation-driven countries showed that greener start-ups are more innovative in countries at all three levels of development, while the relationships with growth orientation and international orientation remained significant for only two of the three categories. The findings of this paper provide a new approach for practitioners to identify the small number of high-quality start-ups and an economic reason warranting intensified efforts to support green start-ups.

Decomposition analysis of entrepreneurial activities in Japan: An international comparison

Entrepreneurship is critical to economic development because it promotes economic growth. Start-ups require a healthy entrepreneurial ecosystem to succeed, but being the world’s third-largest economy, Japan does not have a satisfactory level of entrepreneurship. The objective of this study was to find the magnitude of the gap in entrepreneurial activities in Japan compared with other similar economies and to find the significant entrepreneurial attitudes for this gap. Therefore, this study used Global Entrepreneurship Monitor data from 2001–2018 and applied the Oaxaca-Blinder decomposition method. Three outcome variables have been used for measuring the entrepreneurial activities: Entrepreneurship, Investment, and Future Intention of Entrepreneurship and the entrepreneurial activity gap has been decomposed in terms of four entrepreneurial attitudes (Network, Opportunity, Confidence, and Fear of Failure) in Japan. The results show that Confidence shares most of the part (50–60%) of the explained portion of the Entrepreneurship gap in Japan compared to other countries. For the investment gap in Japan, Confidence and Network explain most of the gap (about 60–70%), whereas Confidence and Opportunity are the most responsible (85–90%) for the gap in future business intention in Japan. This study is the first attempt to identify the entrepreneurial attitudes behind the entrepreneurial gap in Japan and provides important policy implications to enhance entrepreneurial activities in Japan as well as in other similar economies for sustainable economic development.

Entrepreneurial activities, innovation, and job creation: the role of demographics and creativity as moderators

Purpose This study aims to explore the influence of innovation in entrepreneurial activities and job creation, examine the influence of innovation in entrepreneurial activities on jobs creation and investigate the moderating influence of entrepreneurial characteristics between entrepreneurial activity, innovation and job creation. Design/methodology/approach The data was collected from Oman Global Entrepreneurship Monitor data 2020. Sample of 2,000 individuals was involved in entrepreneurial activities. SPSS and PLS software were used to test the structural model and research hypothesis. Findings The results revealed that innovation affects the level of created jobs. Entrepreneurial activity has a significant influence on innovation, jobs created and an indirect effect on jobs created through the mediating influence of innovation. All direct and indirect relationships of entrepreneurial activity and innovation with the expected jobs are insignificant. The findings demonstrate that demographics moderate the relationship between entrepreneurial activity and innovation. Research limitations/implications The study outcomes will be useful for policymakers to understand the innovation types in entrepreneurial activities and whether these enterprises can create future jobs. Practical implications The findings will help entrepreneurial ecosystems and managers to strengthen their business ventures using innovative business models. Social implications This research will provide decision-makers with mechanism on how better business environment will benefit stakeholders. Originality/value While this topic is widely investigated in developed countries, little is known about the impact of innovation on entrepreneurial activities in creating jobs in developing countries. This research contributes to entrepreneurship innovation and institutional theory literature by understanding the role of the entrepreneurship conditions framework that support the jobs creation.

What Explains International Differences in Entrepreneurship Rates

In this paper we investigate, for the first time, how individual determinants of entrepreneurship - such as age, income, education, work status, skills, access to networks and fear of failure - differ between males and females. We conduct our exercise using individual data provided by the Global Entrepreneurship Monitor (GEM), available for 46 countries, between 2001 and 2004. The literature on entrepreneurship has uncovered differences in the rate of entrepreneurship between men and women, with women generally displaying lower entrepreneurial activity than men. This is important since, as we show, entrepreneurial activity is positively related across countries with the female to male entrepreneurial ratio. We examine total entrepreneurship rates, as well as entrepreneurship driven by opportunity and by need. We find that indeed entrepreneurial activity rates are lower for females across all but one of the countries in the sample. Looking at categorical groups – by age interval, education, work status, etc. – we find that female entrepreneurial rates are significantly lower than for males. Results for entrepreneurship by opportunity and by necessity confirm the larger importance of specific skills for women creating new businesses. Our results suggest that facilitating access to business networks and specific business skills are the most powerful instruments to increase the rates of female entrepreneurship