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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
  • Ute Stephan

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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  • Heiko Bergmann & Ute Stephan, 2013. "Moving on from nascent entrepreneurship: measuring cross-national differences in the transition to new business ownership," Small Business Economics, Springer, vol. 41(4), pages 945-959, December.
    • Handle: RePEc:kap:sbusec:v:41:y:2013:i:4:p:945-959
    DOI: 10.1007/s11187-012-9458-4
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    Cited by:

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    2. Audretsch, David B. & Belitski, Maksim & Caiazza, Rosa & Desai, Sameeksha, 2022. "The role of institutions in latent and emergent entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    3. Shim, Jaehu & Davidsson, Per, 2018. "Shorter than we thought: The duration of venture creation processes," Journal of Business Venturing Insights, Elsevier, vol. 9(C), pages 10-16.
    4. Abdallah Alsaad, 2018. "The Individualistic View Of Culture And The Nascent Entrepreneurship: An Examination Of Schwartz’S Cultural Values," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-14, December.
    5. Thomas Neumann, 2023. "Are greener start-ups of superior quality? The impact of environmental orientation on innovativeness, growth orientation, and international orientation," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-24, December.
    6. Tomasz Mickiewicz & Frederick Wedzerai Nyakudya & Nicholas Theodorakopoulos & Mark Hart, 2017. "Resource endowment and opportunity cost effects along the stages of entrepreneurship," Small Business Economics, Springer, vol. 48(4), pages 953-976, April.
    7. Hundera, Mulu, 2019. "Role conflict, coping strategies and female entrepreneurial success in sub-Saharan Africa," Other publications TiSEM 3e263b0c-3bf3-474a-8a20-b, Tilburg University, School of Economics and Management.
    8. Diana M. Hechavarría, 2016. "The impact of culture on national prevalence rates of social and commercial entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1025-1052, December.
    9. Stephan, Ute & Pathak, Saurav, 2016. "Beyond cultural values? Cultural leadership ideals and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(5), pages 505-523.
    10. Steven A. Brieger & Anne Bäro & Giuseppe Criaco & Siri A. Terjesen, 2021. "Entrepreneurs’ age, institutions, and social value creation goals: A multi-country study," Small Business Economics, Springer, vol. 57(1), pages 425-453, June.
    11. Diana M. Hechavarría & Siri A. Terjesen & Amy E. Ingram & Maija Renko & Rachida Justo & Amanda Elam, 2017. "Taking care of business: the impact of culture and gender on entrepreneurs’ blended value creation goals," Small Business Economics, Springer, vol. 48(1), pages 225-257, January.
    12. Etayankara Muralidharan & Saurav Pathak, 2019. "Consequences of Cultural Leadership Styles for Social Entrepreneurship: A Theoretical Framework," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    13. Emilio Pindado & Mercedes Sánchez, 2017. "Researching the entrepreneurial behaviour of new and existing ventures in European agriculture," Small Business Economics, Springer, vol. 49(2), pages 421-444, August.
    14. David B. Audretsch & Maksim Belitski & Rosa Caiazza & Farzana Chowdhury & Matthias Menter, 2023. "Entrepreneurial growth, value creation and new technologies," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1535-1551, October.
    15. Orkhan Nadirov & Bruce Dehning, 2020. "Tax Progressivity and Entrepreneurial Dynamics," Sustainability, MDPI, vol. 12(9), pages 1-21, April.
    16. Emami, Amir & Yoruk, Esin & Jones, Paul, 2023. "The interplay between market need urgency, entrepreneurial push and pull insights and opportunity confidence in the course of new venture creation in the developing country context," Journal of Business Research, Elsevier, vol. 163(C).
    17. AfDB AfDB, 2016. "North Africa - Working paper - The Role of Nascent Entrepreneurship in Driving Inclusive Economic Growth in North Africa," Working Paper Series 2336, African Development Bank.
    18. Brixy, Udo & Brunow, Stephan & D'Ambrosio, Anna, 2020. "The unlikely encounter: Is ethnic diversity in start-ups associated with innovation?," Research Policy, Elsevier, vol. 49(4).

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    More about this item

    Keywords

    Entrepreneurial process; Nascent entrepreneurship; Transition ratio; Birth rate; Global Entrepreneurship Monitor; Panel Study of Entrepreneurial Dynamics; L26; M13; O57;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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