Perceptual Variables and Nascent Entrepreneurship

Using a large sample of individuals in 28 countries, we investigate what variables are significantly correlated with an individuals decision to become an entrepreneur. Following existing literature in economics, we link such a decision to demographic and economic characteristics. In addition, we argue that perceptual variables such as alertness to opportunities, fear of failure, and confidence about ones own skills are also important. Our results suggest that perceptual variables are significantly correlated with new business creation across all countries in our sample and across gender. Although our data do not allow the identification of causal relationships, our findings suggest that, when making decisions, nascent entrepreneurs rely significantly on subjective and often biased perceptions rather than on objective expectations of success. Thus, perceptual variables should be included in economic models of entrepreneurial behavior.JEL CODE: M13, J24, D01     

Nascent Entrepreneurship and the Level of Economic Development

Based upon two strands of literature, this paper hypothesizes a U-shaped relationship between a country’s rate of entrepreneurial dynamics and its level of economic development. This would imply a different scope for entrepreneurship policy across subsequent stages of development. Regressing global entrepreneurship (GEM) 2002 data for nascent entrepreneurship in 36 countries on the level of economic development as measured either by per capita income or by an index for innovative capacity, we find support for a U-shaped relationship. The results suggest that a ‘natural rate’ of nascent entrepreneurship is to some extent governed by ‘laws’ related to the level of economic development. For the most advanced nations, improving incentive structures for business start-ups and promoting the commercial exploitation of scientific findings offer the most promising approach for public policy. Developing nations, however, may be better off pursuing the exploitation of scale economies, fostering foreign direct investment and promoting management education. An erratum to this article is available at .     

Nascent Entrepreneurship Research: Achievements and Opportunities

This paper provides an overview of the articles contained in this issue, all of which were presented at a major research conference on nascent entrepreneurship hosted by the Centre for Entrepreneurship, Durham University UK in September 2005. It also sets the papers in their broader research context and identifies some of the achievements made and challenges faced by researchers in this relatively new field.     

The Changing Face of Entrepreneurship in Germany

This paper explains individual start-up activities on the basis of both person-related characteristics and the regional context. The analysis is based upon micro data from the GEM adult population survey. Both individual and regional variables have an influence on the decision to become self-employed. There are considerable differences between nascent opportunity entrepreneurship and nascent necessity entrepreneurship. Whereas the results for opportunity entrepreneurship are in line with theoretical predictions the factors influencing necessity entrepreneurship are far more difficult to determine. The most significant change between 2001 and 2003/2004 is the reversal of the influence of a change in the regional rate of unemployment on nascent entrepreneurship activities.      

Being in Someone Else’s Shoes: the Role of Gender in Nascent Entrepreneurship

Several studies have shown the existence of significant differences in the rate of new business creation between men and women. Specifically, it has been shown that women are much less likely to be involved in entrepreneurship than men worldwide. It is not yet understood, however, if such differences are the result of personal characteristics of the individual and of her economic environment or are, instead, the result of universal and, perhaps, evolutionary phenomena. Our empirical analysis is conducted using representative samples of population for 37 countries and a special form of bootstrapping that allows us to equalize individuals’ conditions and, as a result, analyze the choices of men and women put in identical economic environments and socio-economic circumstances.      

What does “entrepreneurship” data <Emphasis Type="Italic">really</Emphasis> show?

In this paper, we compare two datasets designed to measure entrepreneurship: The Global Entrepreneurship Monitor (GEM) dataset and the World Bank Group Entrepreneurship Survey (WBGES) dataset. We find a number of important differences when the data are compared. First, GEM data tend to report significantly higher levels of early stage entrepreneurship in developing economies than do the World Bank business entry data, while the World Bank business entry data tend to be higher than GEM data for developed countries. Second, we find that the magnitude of the difference between the datasets across countries is related to the local institutional and environmental conditions for entrepreneurs, after controlling for levels of economic development. Our findings suggest that entrepreneurs in developed countries have greater ease and incentives to incorporate, both for the benefits of greater access to formal financing and labor contracts, as well as for tax and other purposes not directly related to business activities.

Foreign direct investment,institutional quality,economic freedom and entrepreneurship in emerging markets

This study investigates the relationship between foreign direct investment, institutional quality, economic freedom, and entrepreneurship in emerging markets. The research compares the capacity and appetite for business creation among high-income, low-income and emerging countries. The results are based on a panel study of data, from 2004 to 2009 for 87 countries, using as its source “The World Bank Entrepreneurship Snapshots” to look at the connection between business creation, institutional quality, market freedom and foreign direct investment (FDI). The findings reveal a strong positive relationship between institutional quality and business generation in all three of the above categories. The freedom to create businesses and invest has an impact on business generation in emerging countries, while the influence of international trade appears more important as a spur to the genesis of business in low-income countries. Finally, there is a direct and significant relationship between FDI and business development in emerging countries. This result is consistent with “the spillover theory of entrepreneurship” (,  and ).     

Not for Lack of Trying: American Entrepreneurship in Black and White

Using a sample obtained from a survey conducted in the United States during summer 2002, we study the variables related to observed differences in the rate of entrepreneurial involvement between black and white Americans. We find strong evidence that differences in subjective and often biased perceptions are highly associated with entrepreneurial propensity across these two racial groups. In addition, we find that black Americans tend to exhibit more optimistic perceptions of their business environment than other racial groups and are more likely than others to attempt starting a business. In fact, our results show that blacks are almost twice as likely as whites to try starting a business. Thus, our results suggest that the under representation of black Americans among established entrepreneurs is not due to lack of trying but may instead be due to stronger barriers to entry and higher failure rates.     

The Reasons Behind Non-Ethical Behaviour in Business and Entrepreneurship

Despite the recent increase in interest in corporate social responsibility and the propagation of corporate governance in both business and academic literature, from observations of actual practice, the author has seen at all company levels, in everyday operations, instances of non-ethical behaviour vis-à-vis the whole gamut of stakeholders. This state of affairs is linked with: pressure from stakeholders, short-term tactics, hegemony of financial considerations, ‘juridisation’ of business, the tyranny of communications and the media and the difficulties in translating strategy into practical implementation. The paper scrutinises the motivation and the psychology of entrepreneurs and business people, and their behaviour is compared to other professional groups and confronted with the decline in ethics in society as described by some important observers. The conclusion drawn is that the recent positive evolutions do not provide sufficient ethical guidelines for the day-to-day activities of middle managers and entrepreneurs in the present competitive environment. Managers will always be confronted by difficult choices with ethical dilemmas. There will always be a tension between theory and pragmatism, but progress can be made with the effective implementation of the ethical discourse in companies. To achieve this, ethical management should not be confined to the large strategic issues but also applied to the small practical matters of everyday business life. Ethics in business and entrepreneurship requires more than corporate governance and corporate social responsibility (CSR).     

Business and Information Systems Engineering Links Science with Entrepreneurship

One of the major success indicators for applied research sciences is the rate of transfer from research into practice. Only if concrete and economically successful products are derived from research results, such sciences can induce an impact. However, this process of innovation mandatorily needs entrepreneurship. Within the domain of business information systems, the two German enterprises SAP AG and IDS Scheer AG demonstrate that linking research and innovation is the key to lasting success on the information technology markets. German industry has significant disadvantages concerning the cost of human resources. Therefore it can be only successful with products that incorporate a high degree of innovation and that are consequently highly priced. But the invention of such products needs scientific research as a source of inspiration. Germany has a highly developed infrastructure of research facilities and organizations. However, they need to be better coordinated and aligned with business needs. Vice versa, enterprises need to actively approach the scientific community in order to clearly formulate their demand. Such a strategy requires changes on all sides. To achieve a change in the domain of science, it is necessary to change the profile of leading researchers, such as full professors. They should incorporate attributes of an entrepreneur and be profiled more as a research manager who tries to anticipate future needs and to develop their unit in terms of research subjects as well as personnel and financial resources. Consequently, the process of application, selection and review of leading researchers should be more oriented on processes that are common in enterprises. E. g. external head-hunters can be involved in the searching and assessing process in order to obtain the best qualified person for the research vacancy. Also enterprises need to change their attitude towards scientific research. In order to foster this process, executives could be invited to advisory and supervisory boards of research organisations. Furthermore, these executives must be proactively informed about the research activities and results in order to attract their interest and to show potentials for a transfer into products. There is still a long way to go in the hunt for innovation leadership and all these suggestions can only be a starting point. Accepted after one revision by Prof. Dr. Buhl. This article is also available in German in print and via : Scheer AW (2008) Wirtschaftsinformatik zwischen Wissenschaft und Unternehmertum. WIRTSCHAFTSINFORMATIK. doi     

Informal Investment in Transition Economies: Individual Characteristics and Clusters

This paper investigates the factors driving informal investment in Croatia, Hungary and Slovenia. Using Global Entrepreneurship Monitor (GEM) data, we find that the low rates of informal investment activity and the small amounts of investments in these countries are driven by entrepreneurial behaviors consistent with limited market economy experience. We extend prior studies by investigating the role of business ownership, and identify significant differences between individuals with and without business ownership experience in terms of having start-up skills, knowing an entrepreneur and fearing failure. Cluster analysis identifies seven distinct groups of informal investors, and reveals the heterogeneity in terms of investors’ age, gender, level of education, amount of investment, start-up skills, ownership status, income, opportunity perception and country of residence.      

The Determinants of Latent Entrepreneurship in Japan

This paper examines regional characteristics affecting the latent entrepreneurship in Japan, focusing on regional macroeconomic indicators, existing density of establishments and human capital, and business start-up assistance programs by local governments. We define two types of people having the latent entrepreneurship as follows (1) persons merely wishing to be a self-employed worker, and (2) persons preparing to be a self-employed worker out of the former definition. Total cash earnings and the unemployment rate, which are the macro economic indicators, had positive effects on latent entrepreneurship in Japan. Judging from the significance of their estimations, the latent entrepreneurship is explained by the “Push hypothesis”. If we examine the problem more closely, it is necessary for us to identify government assistance programs which make the latent entrepreneurs more self-employment.     

黑龙江省民营企业营商环境优化路径探析

黑龙江省人口外流,人才流失现象的症结在于"三偏",即产业结构偏重,民营经济偏弱,创新人才偏少。黑龙江省委提出"要使民营经济占到黑龙江整个经济的2/3的目标。要服务好民营经济发展,让企业家去留人才,他们最知道需要哪些人才"。持续优化黑龙江省营商环境、实现高质量发展,切实打造亲商、安商、富商的最优环境,充分激活市场主体活力,推动黑龙江全面振兴全方位发展,让黑龙江成为广大民营企业投资兴业的沃土。     

The Decision to Use Alliances as Corporate Entrepreneurship: The Role of Resources and Skills

This aim of this research is to analyse the role of firm resources and skills in the decision to cooperate as a method for developing entrepreneurial activity. We use a sample of 967 entrepreneurial operations undertaken between 2000 and 2004 by 323 EU-15 companies. Results suggest that skills are more important than resources when choosing how to undertake an entrepreneurial activity. While experience in cooperation and possession of technological resources make the choice of an alliance more probable, experience in entrepreneurial activities and possession of physical resources may lead the company to opt for other alternatives.     

基于整合视角的创业教育与工商管理专业教学改革

从整合的现实条件和理论动因出发,阐释创业教育与工商管理专业整合的必然性。接着分析两者整合的内涵,并提出从教学理念和目标、教学内容、教学方法、教学活动、教学评价等五个方面进行工商管理专业教学改革,以推动创业教育融入专业体系之内,同时解决工商管理专业目前面临的各种问题。     

Overview of Collaborative Entrepreneurship: An Integrated Approach Between Business Decisions and Negotiations

In recent years, the complex, turbulent and changing environment in which firms operate has greatly intensified. A new era of continuous innovation has emerged in which knowledge is the key asset, and whose exploitation determines success for many firms. In this context, it is generally accepted that effective knowledge management depends heavily on a company’s ability to collaborate, both inside (Collective Entrepreneurship) and outside (Collaborative Entrepreneurship) the organization. Collaboration enables a firm to be entrepreneurial and continuously innovative by exploring new markets. Continuous innovation and market exploration are the building blocks of collaboration. Therefore, the aim of this paper is to develop the concept of Collaborative Entrepreneurship, linking the most relevant issues with the concept of Collective Entrepreneurship, from a preliminary integrative approach. From this approach, three elementary dimensions are emphasized: strategy, structure and management philosophy. Strategy refers to the shared common project among collaboration partners; Structure concerns the flexibility of structures and adaptation to environmental changes; and Management Philosophy is about trust. Also, networks within the firm and among firms could form the basis of Collaborative Entrepreneurship in the context of negotiation and decision processes. A brief overview of the content of each of the articles included in this special issue on Collaborative entrepreneurship is presented following this article.     

Home country institutions,social value orientation,and the internationalization of ventures

We examined how home country formal institutions and the venture’s value orientation influenced the venture’s likelihood of internationalization based on a data set that was adapted from the Global Entrepreneurship Monitor (GEM) data in the year 2009, covering 7668 individual ventures in 25 countries. Better-developed home country formal institutions are found to have a supportive impact on the venture’s likelihood of internationalization. The supportive impact is also found to be weaker for socially oriented ventures than for profit-oriented ventures. The venture’s social value orientation negatively moderates the home country formal institutions–likelihood of internationalization relationship. The negative moderating effects can be explained as follows: Socially oriented ventures in the better-developed home country institutional environment are less likely to develop coping skills against uncertain and risky institutional environments, which are common in their host countries. Besides the theoretical contributions, this paper also highlights the implications for both business researchers and policy makers.     

创业金融政策多样化与碎片化研究

目前,创业金融政策的发展呈现出新的态势：一方面政府参与创业金融的活动日益积极,相关政策越来越多样化;另一方面,各种政策之间的不协调性更加突出,政策体系结构碎片化特征日益明显。这种局面不仅造成创业资源的浪费,而且扭曲和伤害了创业文化价值的根基。创业金融政策多样性源自社会多元化的发展趋势与金融多元化客观需求,碎片化则是多样性与单一性相冲突的具体表现。造成冲突的直接原因是以商业银行为主导的金融产品供给难以满足多元化市场的需求,而更深层的原因来自对政策问题界定的偏差。     

战略创业前沿研究进展及启示

战略创业是创业和战略管理相结合的产物,创业活动和战略行为的互补有利于企业实现财富最大化.战略研究与创业研究的结合,有利于更好地分析企业是如何识别开发创业机会,建立和保持竞争优势能力,以及如何动态运作战略创业以创造财富.目前,战略创业已成为国际学术界的研究热点,美国战略管理学会为此特别设立了<战略管理>杂志的姐妹刊物:<战略创业>杂志,但是国内对于这一国际学界的发展方向还没有给予应有的重视.     

Exploiting Entrepreneurial Opportunities: The Impact of Entrepreneurship on Growth

Knowledge is recognized as an important ingredient for economic growth in addition to physical capital and labor. While transforming knowledge into products and processes it is exploited commercially. Nevertheless, the existing knowledge stock and the absorptive capacity of actors like employees at firms and researchers at universities and research institutions are conditional for the ability to produce, identify, and exploit knowledge. Since incumbent firms do not exploit new knowledge to the full extent, realized entrepreneurial opportunities may arise. This paper tests the hypothesis whether or not entrepreneurship is an important vehicle for knowledge flows and economic growth. The empirical results indicate that an increase in innovative start-up activity is more effective than an increase in general entrepreneurship for economic growth.