What does"entrepreneurship"data really show ? a comparison of the global entrepreneurship monitor and World Bank group datasets
AbstractThis paper compares two datasets designed to measure entrepreneurship. The Global Entrepreneurship Monitor dataset captures early-stage entrepreneurial activity; the World Bank Group Entrepreneurship Survey dataset captures formal business registration. There are a number of important differences when the data are compared. First, GEM data tend to report significantly greater levels of early-stage entrepreneurship in developing economies than do the World Bank data. The World Bank data tend to be greater than GEM data for developed countries. Second, 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. A possible explanation for this is that the World Bank data measure rates of entry in the formal economy, whereas GEM data are reflective of entrepreneurial intent and capture informality of entrepreneurship. This is particularly true for developing countries. Therefore, this discrepancy can be interpreted as the spread between individuals who could potentially operate businesses in the formal sector - and those that actually do so: In other words, GEM data may represent the potential supply of entrepreneurs, whereas the World Bank data may represent the actual rate of entrepreneurship. The 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4667.
Date of creation: 01 Jul 2008
Date of revision:
Banks&Banking Reform; E-Business; Access to Finance; Microfinance; Information Security&Privacy;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-13 (All new papers)
- NEP-DEV-2008-09-13 (Development)
- NEP-ENT-2008-09-13 (Entrepreneurship)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zoltan Acs & Laszlo Szerb, 2007. "Entrepreneurship, Economic Growth and Public Policy," Small Business Economics, Springer, vol. 28(2), pages 109-122, March.
- Simeon Djankov & Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer, .
"The Regulation of Entry,"
19462, Harvard University OpenScholar.
- Djankov, Simeon & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2001. "The Regulation of Entry," Working Paper Series rwp01-015, Harvard University, John F. Kennedy School of Government.
- Simeon Djankov & Rafael La Porta & Florencio LopezdeSilanes & Andrei Shleifer, 2000. "The Regulation of Entry," NBER Working Papers 7892, National Bureau of Economic Research, Inc.
- Djankov, Simeon & La Porta, Rafael & Shleifer, Andrei & Lopez de Silanes, Florencio, 2001. "The regulation of entry," Policy Research Working Paper Series 2661, The World Bank.
- Djankov, Simeon & La Porta, Rafael & López-de-Silanes, Florencio & Shleifer, Andrei, 2001. "The Regulation of Entry," CEPR Discussion Papers 2953, C.E.P.R. Discussion Papers.
- Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andre Shleifer, 2000. "The Regulation of Entry," Harvard Institute of Economic Research Working Papers 1904, Harvard - Institute of Economic Research.
- Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1991.
"The Allocation of Talent: Implications for Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 106(2), pages 503-30, May.
- 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.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implications for Growth," NBER Working Papers 3530, National Bureau of Economic Research, Inc.
- André Stel & David Storey & A. Thurik, 2007.
"The Effect of Business Regulations on Nascent and Young Business Entrepreneurship,"
Small Business Economics,
Springer, vol. 28(2), pages 171-186, March.
- van Stel, A.J. & Storey, D. & Thurik, A.R., 2006. "The Effect of Business Regulations on Nascent and Young Business Entrepreneurship," ERIM Report Series Research in Management ERS-2006-052-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- André van Stel & Roy Thurik & David Storey, 2006. "The effect of business regulations on nascent and young business entrepreneurship," Scales Research Reports H200609, EIM Business and Policy Research.
- Leora Klapper & Raphael Amit & Mauro F. Guillén, 2010.
"Entrepreneurship and Firm Formation across Countries,"
in: International Differences in Entrepreneurship, pages 129-158
National Bureau of Economic Research, Inc.
- 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.
- Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
- 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.
- 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.
- Zoltan Acs & José Amorós, 2008. "Entrepreneurship and competitiveness dynamics in Latin America," Small Business Economics, Springer, vol. 31(3), pages 305-322, October.
- Elsa de Morais Sarmento & Alcina Nunes, 2011. "Criação de empresas em Portugal e Espanha: análise comparativa com base nos dados do Banco Mundial," GEE Papers 0036, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação, revised May 2011.
- Silvia Ardagna & Annamaria Lusardi, 2009. "Where does regulation hurt? Evidence from new businesses across countries," NBER Working Papers 14747, National Bureau of Economic Research, Inc.
- Fernanda Llussa, 2011. "Determinants of Entrepreneurship: Are Women Different?," FEUNL Working Paper Series wp555, Universidade Nova de Lisboa, Faculdade de Economia.
- Ács, Zoltán J. & Autio, Erkko & Szerb, László, 2014. "National Systems of Entrepreneurship: Measurement issues and policy implications," Research Policy, Elsevier, vol. 43(3), pages 476-494.
- Silvia Ardagna & Annamaria Lusardi, 2010. "Explaining International Differences in Entrepreneurship: The Role of Individual Characteristics and Regulatory Constraints," NBER Chapters, in: International Differences in Entrepreneurship, pages 17-62 National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.