Rate Of Entrepreneurial Activity Research Articles

Longitudinal study of necessity- and opportunity-based entrepreneurship upon COVID lockdowns - The importance of misery and economic freedom indexes

The economic progress of a society and its economic growth are strongly grounded on the country's rate of entrepreneurial activity. In turn, the decision to create a new venture is known to be highly influenced by the context in which it will be created. Institutional contexts that are prone to confiscation risks will be less conducive towards entrepreneurship, especially during an exogenous economic shock. In the present study, we gathered entrepreneurial aspirations data from the Global Entrepreneurship Monitor and analyzed it in light of contextual factors taken from the World Bank and the Fraser Institute. The sample is composed of panel data that were analyzed through machine learning techniques (Artificial Neural Networks). We gathered data from 30 countries for 2017, 2018, 2019, and 2020 to account both for regular years and a year subjected to an exogenous economic shock – the one caused by the COVID-19 pandemic in 2020. We found that economic freedom might be occasionally overvalued when used as a predictor for entrepreneurship, especially for high income economies. At the same time, however, the academic community may not be paying enough attention to economic hardship as a predictor for entrepreneurship, which can be of the greatest importance in case of an exogenous economic shock.

The Effectiveness of Entrepreneurship Policies in Europe and the Influence of the Eurozone

Abstract The promotion of entrepreneurship is a priority objective for the European Union. Each country develops the most appropriate instruments for its economic structure; however, its effects are different depending on the conditions of its environment. The objective of this work is to study whether there are significant differences among European countries depending on whether or not they belong to the Eurozone. A panel data regression model is used to assess the contribution of the different policies to the rate of entrepreneurial activity. The results show that the experts’ evaluations of the implemented policies are higher in the member states of the monetary union. Policies with a negative impact are recurring demands from employers (bureaucracy, tax barriers, improve physical infrastructure).

Empowering Women Entrepreneurs in Brazil: An Analysis of 2010-2019 Trends

This study undertakes a succinct literature review to delve into the importance of female entrepreneurship in Brazil, particularly focusing on the period from 2010 to 2019. By scrutinizing Brazilian Gross Domestic Product (GDP) data and referencing reports from the Global Entrepreneurship Monitor (GEM), the research effectively situates female entrepreneurship within the Brazilian economic context. Employing metrics such as Total Early-stage Entrepreneurial Activity (TEA) Rate, Established Business Ownership Rate (EBO), and Total Entrepreneurship Rate (TER), the study delves into the Total Early-stage Entrepreneurial Activity Rate across diverse demographics including age groups, income ranges, education levels, and sectors. Through correlation analysis and dispersion diagrams, intricate connections emerge between early-stage entrepreneurial rates and variables such as age, income, education, and sectors. This research unveils the profile and significance of Brazilian entrepreneurs, underscoring the pivotal role of women in nurturing economic and societal progress. Elevating women's participation in entrepreneurship emerges as a cornerstone for transformative societal change, embodying ideals of self-sufficiency and empowerment. This research is classified within the realms of bibliographic, documentary, descriptive, and exploratory methodologies. Notably, the study reveals that female entrepreneurship significantly contributes to Brazil's economic advancement, fostering both economic and social development.

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

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

Who Runs the World: Women Entrepreneurs and Economic Development

Economic development aims to increase economic wealth and prosperity within a country to improve the overall quality of living for the people and incite positive change within society. Due to its vital role, economic development, or rather the factors of economic development, has been greatly researched and debated by economists. The Human Capital Approach asserts that people can increase productivity and consequently promote development through greater education and skills attainment as well as improved health. Women in particular have been proven to create and utilize economic opportunities differently from men, and there is evidence that women entrepreneurs are driving forces in economic progress. Though there is much research on development across countries, there is a lack of research on the impact that women entrepreneurs make on the economy across the stages of development. This research assesses the relationship between important measurements related to female entrepreneurial activity and economic development according to the two-category development status (i.e., higher vs lower income), income level, and level of female entrepreneurial activity. It utilizes the World Bank Open Data System to access and evaluate measurements related to human capital, entrepreneurship, women, and female entrepreneurial activity. Two-tailed t-tests and a one-factor ANOVA test reveals important associations: an association between higher rates of female entrepreneurial activity and increased economic development. The results also reveal the importance of capital access and institutions related to start-up procedures for registering businesses in spurring both female entrepreneurial activity and development.

The impact of policy uncertainty on entrepreneurial activity: a cross-country analysis

ABSTRACT This study examines the impact of Economic Policy Uncertainty (EPU), capturing the extent to which a national economy is characterized by uncertainty about future tax codes, monetary policy, and government spending on the rate of entrepreneurial activity, including necessity entrepreneurship and opportunity entrepreneurship. Applying the system Generalized Method of Moments methodology on panel data covering 26 countries over 19 years, we show that higher EPU is associated with increased rates of necessity entrepreneurship. The results are significant even after controlling for other macro-level indicators and alternate EPU specifications. The results also suggest a lower rate of necessity entrepreneurship in developed economies, which reflects the role of safety nets as a shield against sudden loss of livelihood. We find no significant relationship between EPU and opportunity entrepreneurship, suggesting that opportunity entrepreneurship is governed by a more complex combination of factors. Our study contributes to the literature on determinants of entrepreneurship and offers important recommendations for entrepreneurs and policymakers.

Do refugee inflows contribute to the host countries’ entrepreneurial rates? A dynamic panel data analysis, 2000–2019

PurposeThis study aims to estimate the impact of refugee inflows on host countries’ entrepreneurial rates. The refugee crisis led to an increased scientific and public policy interest in the impact of refugee inflows on host countries. One important perspective of such an impact, which is still underexplored, is the impact of refugee inflows on host countries entrepreneurial rates. Given the high number of refugees that flow to some countries, it would be valuable to assess the extent to which such countries are likely to reap the benefits from increasing refugee inflows in terms of (native and non-native) entrepreneurial talent enhancement.Design/methodology/approachResorting to dynamic (two-step system generalized method of moments) panel data estimations, based on 186 countries over the period between 2000 and 2019, this study estimates the impact of refugee inflows on host countries’ entrepreneurial rates, measured by the total early-stage entrepreneurial activity (TEA) rate and the self-employment rate.FindingsIn general, higher refugee inflows are associated with lower host countries’ TEA rates. However, refugee inflows significantly foster self-employment rates of “medium-high” and “high” income host countries and host countries located in Africa. These results suggest that refugee inflows tend to enhance “necessity” related new ventures and/ or new ventures (from native and non-native population) operating in low value-added, low profit sectors.Originality/valueThis study constitutes a novel empirical contribution by providing a macroeconomic, quantitative assessment of the impact of refugee from distinct nationalities on a diverse set of host countries' entrepreneurship rates in the past two decades resorting to dynamic panel data models, which enable to address the heterogeneity of the countries and deal with the endogeneity of the variables of the model.

Assessing the Entrepreneurship Ecosystem in Egypt through a Gender Lens

Purpose: According to the Egyptian Start-up Ecosystem Report (ITIDA, 2021), Egypt has one of the foremost start-up ecosystems on Africa, both in terms of levels of start-up activity and inward investments. Yet the county lags in terms of women’s participation in founding start-ups. According to the latest Global Entrepreneurship Monitor report for Egypt, the entrepreneurial activity rate for women was 5.7%, while that of Egyptian men was 16.7%, despite women’s positive attitudes towards entrepreneurship. 
 Methodology: The current research has an exploratory nature and aims at analysing entrepreneurship ecosystem in Egypt through a gender lens to highlight the factors that are hindering Egyptian women from exploiting the different elements of the ecosystem. To achieve this, it adopts the exploratory research approach combining semi-structured interviews with ten women entrepreneurs chosen using expert sampling and an online survey distributed via Egyptian entrepreneurs’ online communities. 
 Findings: Analysis shows that Egyptian women entrepreneurs do not believe that the ecosystem discriminates against them, but there are some practices that are gender-insensitive which poses challenges to women hence impact their presence and activities within the ecosystem. 
 Unique contribution to theory, policy and practice: The results add to the literature of both entrepreneurship ecosystem and women entrepreneurship in Egypt and it provides practical implications to leverage Egyptian women participation in entrepreneurship.

The early-stage entrepreneurial activity of women in individualistic versus collectivist country groups: Motives, drivers and inhibitors

The purpose of this paper is to investigate whether differences in female entrepreneurial rates are explained by inherited cultural, societal, and technological factors. Women's early-stage entrepreneurial activity in two groups of countries is examined in this study. As part of the analysis, we used data from the Global Entrepreneurship Monitor and employed Logistic Regression, the Synthetic Minority Oversampling Technique, and Firth logistics for rare events. Collectivist countries have higher rates of early-stage entrepreneurial activity among women, but these occur in less technologically advanced sectors. Women’s primary motivation for entrepreneurship in countries with lower disposable personal income is necessity. New technology adoption rates in early-stage entrepreneurial activity are significantly higher in collectivist countries. Young women's entrepreneurial rates are slightly affected by the loneliness phenomenon. study's weaknesses are the overconfidence of interviewees in their ability to self-assess their skills, the low rate of women entrepreneurs, and the omission of essential variables due to missing data. This study tests the adage that individualistic behavior promotes entrepreneurship and examines the impact of societal variables on women's entrepreneurship, contrary to certain assumptions made in the GEM report. The study contributes to the body of knowledge regarding female entrepreneurship.

Social and community entrepreneurship in the context of changes and crisis in Ecuador

Social or community enterprises are part of the popular economy oriented towards the satisfaction of the needs of the community rather than profit. Social entrepreneurship in the world has helped to improve employment and even the growth of nations. This article analyzes the relevance of socialentrepreneurship in Ecuador, its strengths, and its weaknesses. The document review method is used to provide state-of-the-art and question knowledge. In Ecuador, there is a legal framework and an enabling public policy. In addition, there has been a good figure for the country in the last decade, in relation to international measurements of the Entrepreneurship climate and the rate of entrepreneurial activity. The COVID-19 pandemic, the country's economic difficulties, and policy constraints, especially in the area of financing, have been obstacles to the growth of entrepreneurship.

Factors that influence the decision of Peruvian women to become entrepreneurs

This study aims to discover the various entrepreneurial motives driving Peruvian women’s decision to become entrepreneurs rather than workers under the conceptual framework of the push-pull theory. For this study, researchers conducted an exploratory cross-sectional investigation to determine what factors are most likely to encourage Peruvian women to establish their businesses in their home country. Semi-structured interviews were conducted utilizing face-to-face technique. Additionally, the snowball sampling approach was used to identify possible focus group participants. Among Peruvian women’s entrepreneurial choices, personal growth, social mission, and interpersonal relationships were the most influential factors. Although financial motivation is an important factor for female entrepreneurs, it isn’t the primary driver. A larger sample of female entrepreneurs is required for the study to be generalizable. Because Peruvian women have one of the highest rates of entrepreneurial activity globally, the country’s economy might undergo a significant transformation if these women are given adequate assistance.

The Impact of South Africa’s Total Early-stage Entrepreneurial Activity Rate on Entrepreneurial Attitudes and Behavior

Given that entrepreneurship scholars use various approaches to measure entrepreneurial success, which leads to inconsistent findings, in this study we investigate the impact that South Africa’s total early-stage entrepreneurial activity (TESEA) rate has on the entrepreneurial attitudes and behavior of South Africans and their reactions to different macroeconomic factors. Secondary datasets were elicited from the World Bank’s world development indicators and the Global Entrepreneurship Monitor (GEM) database from 2003–2014. Using a generalized linear model (GLM) poisson regression, we affirmed the statistical significance of these relationships, as well as enhanced the validity and reliability of the quantitative estimation procedure. We found that the TESEA rate is positively associated with a higher ease of doing business and entrepreneurial intention level. Furthermore, we found that when entrepreneurship is viewed as a good career choice, and given media visibility, the TESEA rate increases, and vice versa. It was also observed that the GDP per capita (which relies on efficiency, innovation and optimal utilization of market knowledge), as well as the level of economic freedom in South Africa, positively impacts the nation’s TESEA rate. Likewise, we found that the unemployment rate is positively associated with the TESEA rate of South Africa. South Africa’s TESEA rate is influenced by a combination of factors due to the dynamic nature of individual traits. However, the TESEA rate has a remarkable impact on South Africa’s entrepreneurial decision making. This implies that a targeted approach is more relevant when implementing both private and government policy initiatives.

Entrepreneurial intention and university: A necessary relationship in regions with high level of unemployment

Purpose: Although university entrepreneurship education as a predictor of entrepreneurial intention (EI) has been verified in the academic literature, few studies have analysed its influence in regions with low entrepreneurial activity. This research provides a new point of view by contrasting students' perceptions with what entrepreneurs consider most relevant. We propose an integrative and multi-perspective framework based on expectancy theory and the theory of planned behaviour, which includes the moderating effect of gender and family imprinting. Design/methodology/approach: A valid sample of 108 business students from the University of Huelva (Spain) served as the basis of the study, whose data were analysed using consistent partial least squares (PLSc) to validate the scales and subsequently test the hypotheses. In addition, 54 valid questionnaires from local entrepreneurs were used for the comparative analysis between entrepreneurs and students. Findings: Our findings showed that the elements associated with university support have a significant, albeit negative, impact on students' intentions to become entrepreneurs. In terms of moderating variables, no significant differences were found by gender, but significant differences were found in the group with entrepreneurial parents. In relation to the determinants of entrepreneurial success, it was found that the students' conceptions of entrepreneurship were closer to those of the entrepreneurs in Huelva than to those of the successful entrepreneurs. Originality/value: This paper contributes to the academic debate on whether universities in general, and business schools in particular, should promote entrepreneurship as the core of education. We believe that these results, despite the specific and limited scope of the study, may be of great interest for university staff in regions with high levels of structural unemployment and low rates of total early-stage entrepreneurial activity (TEA) to incorporate into their academic programmes.

Institutional factors, religiosity, and entrepreneurial activity: A quantitative examination across 85 countries

• The results reveal that government effectiveness is negatively related to total entrepreneurial activity. • The introduction of political freedom as a mediator between government effectiveness and entrepreneurship yields a positive relationship. • Religiosity moderates the indirect effect of government effectiveness on total entrepreneurial activity through political freedom. • The indirect effect will be stronger under low levels of religiosity than under high levels of religiosity. Given the ongoing debate on the relationship between institutions and entrepreneurship, this study aims to better understand the joint effects of two country-level formal institutions, government effectiveness and political freedom, and whether the informal institution of religiosity moderates this relationship. To achieve this goal, the current study used multiple datasets, including the Global Entrepreneurship Monitor (GEM), World Governance Indicators (WGIs), and the WIN-Gallup International Global Index of Religiosity and Atheism. The data cover 85 countries from 2010 to 2017. The results suggest that the rate of entrepreneurial activity across nations is shaped by the interplay between formal and informal institutions.

The value of entrepreneurship by gender on regional behaviour

This paper examines how the value of entrepreneurship by gender is related to regional behaviour. Researchers have traditionally defined entrepreneurial organization as separate to gender and to economic growth. Using the Global Entrepreneurship Monitor (GEM) we complete a dataset of 50 countries using variables such as total early-stage entrepreneurial activity (TEA) and opportunity-driven entrepreneurial activity (OPP). The methodology used proposes an analysis of regional convergence, comparing the evolution over time of both the rate of entrepreneurial activity and the ratios of opportunity-driven and need-driven entrepreneurial activity, distinguishing by gender. On the other hand, a regression model is proposed that explains the greater presence of female entrepreneurship. The results show that entrepreneurship by gender is an important factor to define different cluster of countries according to how men and women entrepreneurs create new economic opportunities.

The economic effects of politically connected entrepreneurs on the quality and rate of regional entrepreneurship

ABSTRACT While research on institutional quality and entrepreneurship has consolidated over the last decade, the role that politically connected entrepreneurship (PE) plays in the perception of economic actors about the quality and a rate of entrepreneurial activity in their cities remains unanswered. The origin and nature of PE are heterogeneous, and it is associated with economic activity in a strong formal and informal cooperation with local and national governments to access resources in a privileged way. This study uses primary data from 1729 economics agents surveyed in 17 cities in East and Southeast Europe as well as Balkans and Central Asia. In order to better understand the consequences of PE, one should look at how it moderates the relationship between access to capital for entrepreneurs and the outcomes of entrepreneurial activity. We find that politically connected entrepreneurship may limit access to debt finance by other – non-politically economic actors, in particular in countries with a high level of corruption and market uncertainty. PE does not affect equity capital availability for entrepreneurship. Important policy implications are discussed for developing productive entrepreneurship in cities in emerging and developing economies.

What women want (and need) from coaching relationships during business incubation

This qualitative study explores what dimensions of entrepreneurial coaching matter to women during business incubation and why. This issue is important because Canada is a world leader in the rate of entrepreneurial activity and business incubation support, yet women are underrepresented and their coaching needs are not well understood. Purposive sampling was employed to recruit 15 participants (6 women, 5 men, 4 coaches) from four Canadian incubators. Data was collected using semi-structured interviews. NVivo software facilitated coding and gender comparisons. Analysis followed the Gioia methodology for grounded theorizing which revealed 52 second-order concepts that grouped into three primary coaching dimensions (venture support, emotional support, gender inclusivity). Men and women value these dimensions differently. The emergent theoretical model suggests that for women entrepreneurs, business expertise (a dimension of venture support), emotional support, and gender inclusivity influence the development of entrepreneurial self-efficacy (ESE), which, in turn, contributes to entrepreneurial outcomes (venture and personal development) during business incubation. The coach’s personal investment and the entrepreneur’s coachability influences these relationships. The findings have implications for future research exploring incubation as a gendered phenomenon, and for incubator managers and policy makers concerned with designing inclusive incubation programs and reducing the gender gap in Canadian entrepreneurship.

WHEN RISING TIDES LIFT SOME BOATS MORE THAN OTHERS: GENDER-BASED DIFFERENCES IN THE EXTERNAL ENABLEMENT OF ENTREPRENEURSHIP

External enablers (EEs) are exogenous, macro-environmental forces that influence the rate, extent and substance of entrepreneurial activity. A steadily increasing body of empirical research has sought to identify, describe and predict the aggregate impact of EEs, yet few studies have assessed whether EEs exert similar or dissimilar effects across societal groups, and none to date have sought to ascertain whether EEs function in a gender-neutral fashion. The issue is important to address because it is common for governments to implement policies designed to leverage or mitigate the influence of EEs. Absent knowledge regarding the differential effects of EEs, policies may be enacted with an aggregate intent, but which may routinely disadvantage female entrepreneurs. To address this concern, we investigate the impact of a prominent EE (internet access) on entrepreneurial activity, employing a longitudinal design, consisting of 61 countries from 2004 to 2013. Our results suggest that increased internet access is, in the aggregate, associated with heightened entrepreneurial activity, but the favorable effect for male entrepreneurs is markedly greater than that for female entrepreneurs. The findings reveal that gender-based disaggregation is critical in assessing the influence of EEs.

Environmental Consciousness of Entrepreneurs in Ghana: How Do Entrepreneur Types, Demographic Characteristics and Product Competitiveness Count?

Businesses are believed to be partly responsible for upsetting the balance of local biodiversity through activities that degrade the environment. Critically, entrepreneurship is increasingly being cited as a key sector that can bring about sustainable transformation in production and distribution. Ghana’s total entrepreneurial activity rate is estimated at 37%, with businesses operating unsustainably. Meanwhile, little has been explored empirically on the factors that influence businesses’ sensitivity to the environment in Ghana. Using the 2013 GEM data in estimating seven different logic regression models coupled with a qualitative analysis, this paper fills the gap by investigating how the demographic and entrepreneurial characteristics of entrepreneurs in Ghana influence their environmental consciousness. The empirical evidence suggests that education fosters environmental consciousness, while owner-manager and female entrepreneurs as well as rural locality entrepreneurs in Ghana tend to be more environmentally sensitive. The qualitative data also revealed general concerns for the environment as motivating factors for entrepreneurs to be more environmentally conscious. The findings therefore draw attention to the inadequate focus on green entrepreneurship in Ghana. Embarking on educational campaigns to promote the adherence to environmental regulations by all businesses, especially those in urban areas, could help build a robust eco-preneurship landscape in Ghana.