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What does “entrepreneurship” data really show?

  • Zoltan Acs

    ()

  • Sameeksha Desai

    ()

  • Leora Klapper

    ()

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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File URL: http://hdl.handle.net/10.1007/s11187-008-9137-7
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Article provided by Springer in its journal Small Business Economics.

Volume (Year): 31 (2008)
Issue (Month): 3 (October)
Pages: 265-281

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Handle: RePEc:kap:sbusec:v:31:y:2008:i:3:p:265-281
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100338

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  1. 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.
  2. Leora Klapper & Raphael Amit & Mauro F. Guillén, 2010. "Entrepreneurship and Firm Formation across Countries," NBER Chapters, in: International Differences in Entrepreneurship, pages 129-158 National Bureau of Economic Research, Inc.
  3. 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.
  4. 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.
  5. 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.
  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. 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.
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