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Moving on from nascent entrepreneurship: measuring cross-national differences in the transition to new business ownership

  • Heiko Bergmann

    ()

  • Ute Stephan

    ()

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    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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    File URL: http://hdl.handle.net/10.1007/s11187-012-9458-4
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    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 41 (2013)
    Issue (Month): 4 (December)
    Pages: 945-959

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    Handle: RePEc:kap:sbusec:v:41:y:2013:i:4:p:945-959
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    1. Sander Wennekers & André van Stel & Roy Thurik & Paul Reynolds, 2005. "Nascent entrepreneurship and the level of economic development," Papers on Entrepreneurship, Growth and Public Policy 2005-14, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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