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What Does "Entrepreneurship" Data Really Show?

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  • Zoltan J. Acs

    (George Mason University and Max Planck Institute of Economics)

  • Sameeksha Desai

    (Max Planck Institute of Economics and George Mason University)

  • Leora Klapper

    (The World Bank, Development Research Group)

Abstract

We compare two "entrepreneurship" datasets: Global Entrepreneurship Monitor (GEM) captures early-stage entrepreneurship and World Bank Group Entrepreneurship Survey (WBGES) captures business registration. GEM data is higher in developing economies than WBGES data, but this reverses in developed countries. We find differences related to local institutional conditions, after controlling for economic development. A possible explanation is WBGES measures formal entry, whereas GEM measures intent. This can be interpreted as the spread between individuals who could potentially operate businesses in the formal sector - and those that actually do. Our findings suggest entrepreneurs in developed countries have greater ease and incentives to incorporate.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-007.

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Date of creation: 30 Jan 2008
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Handle: RePEc:jrp:jrpwrp:2008-007

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Keywords: Global Entrepreneurship Monitor; World Bank Group Entrepreneurship Survey; entrepreneurial intent; formal business registration; entry;

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  1. Zoltan J. Acs & Jose Ernesto Amoros, 2008. "Entrepreneurship and Competitiveness Dynamics in Latin America," Jena Economic Research Papers 2008-059, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Klapper, Leora & Amit, Raphael & Guillen, Mauro F. & Quesada, Juan Manuel, 2007. "Entrepreneurship and firm formation across countries," Policy Research Working Paper Series 4313, The World Bank.
  3. Simeon Djankov & Rafael La Porta & Florencio Lopez-De-Silanes & Andrei Shleifer, 2002. "The Regulation Of Entry," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 1-37, February.
  4. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implicationsfor Growth," University of Chicago - George G. Stigler Center for Study of Economy and State 65, Chicago - Center for Study of Economy and State.
  5. Leora Klapper & Juan Manuel Quesada Delgado, 2007. "Entrepreneurship : New Data on Business Creation and How to Promote It," World Bank Other Operational Studies 11163, The World Bank.
  6. Jonathan Levie & Erkko Autio, 2008. "A theoretical grounding and test of the GEM model," Small Business Economics, Springer, vol. 31(3), pages 235-263, October.
  7. Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2006. "Entry regulation as a barrier to entrepreneurship," Journal of Financial Economics, Elsevier, vol. 82(3), pages 591-629, December.
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