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Moving on from nascent entrepreneurship: measuring cross-national differences in the transition to new business ownership

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  • Heiko Bergmann

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  • Ute Stephan

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    Abstract

    Nascent entrepreneurship and new business ownership are subsequent stages in the entrepreneurial process. We illustrate how information from the largest internationally harmonized database on entrepreneurship, the Global Entrepreneurship Monitor project, can be used to approximate the entrepreneurial process. We make a methodological contribution by computing the ratio of new business ownership to nascent entrepreneurship in a way that reflects the transition from nascent to new business ownership and provides cross-nationally comparable information on the efficiency of the entrepreneurial process for 48 countries. We report evidence for the validity of the transition ratio by benchmarking it against transition rates obtained from longitudinal studies and by correlating it with commonly used entrepreneurship indicators and macro-level economic indices. The transition ratio enables future cross-national research on the entrepreneurial process by providing a reliable and valid indicator for one key transition in this process. Copyright Springer Science+Business Media New York 2013

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    File URL: http://hdl.handle.net/10.1007/s11187-012-9458-4
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    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 41 (2013)
    Issue (Month): 4 (December)
    Pages: 945-959

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    Handle: RePEc:kap:sbusec:v:41:y:2013:i:4:p:945-959

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    Web page: http://www.springerlink.com/link.asp?id=100338

    Related research

    Keywords: Entrepreneurial process; Nascent entrepreneurship; Transition ratio; Birth rate; Global Entrepreneurship Monitor; Panel Study of Entrepreneurial Dynamics; L26; M13; O57;

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    1. Zoltan Acs & Sameeksha Desai & Leora Klapper, 2008. "What does “entrepreneurship” data really show?," Small Business Economics, Springer, vol. 31(3), pages 265-281, October.
    2. Sander Wennekers & André Stel & Roy Thurik & Paul Reynolds, 2008. "Nascent entrepreneurship and the level of economic development," Small Business Economics, Springer, vol. 30(3), pages 325-325, March.
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    16. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
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