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Postmaterialism influencing total entrepreneurial activity across nations

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  • Lorraine Uhlaner
  • Roy Thurik

Abstract

The relative stability of differences in entrepreneurial activity across countries suggests that other than economic factors are at play. The objective of this paper is to explore how postmaterialism may explain these differences. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total entrepreneurial activity, as defined within the Global Entrepreneurship Monitor (GEM). The model is also tested for the rate of established businesses. The measure for postmaterialism is based upon Inglehart’s four-item postmaterialism index. A set of economic, demographic and social factors is included to investigate the independent role postmaterialism plays in predicting entrepreneurial activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries (GEM, World Values Survey and other sources) are used to test the hypotheses. Findings confirm the significance of postmaterialism in predicting total entrepreneurial activity and more particularly, new business formation rates.
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  • Lorraine Uhlaner & Roy Thurik, 2007. "Postmaterialism influencing total entrepreneurial activity across nations," Journal of Evolutionary Economics, Springer, vol. 17(2), pages 161-185, April.
    • Handle: RePEc:spr:joevec:v:17:y:2007:i:2:p:161-185
    DOI: 10.1007/s00191-006-0046-0
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    More about this item

    Keywords

    Comparative analysis of economies; Cultural economics; Entrepreneurship; Self-employment; Macro-economic analyses of economic development; P52; Z1; M13; O11; O57;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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