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Postmaterialism influencing total entrepreneurial activity across nations

  • Lorraine Uhlaner

    ()

  • Roy Thurik

    ()

The study of predictors of entrepreneurial activity at the country level has been dominated by economic influences. However, the relative stability of differences in entrepreneurial activity across countries suggests that other forces such as institutional and/or cultural factors are at play. The objective of this paper is to explore more specifically how post-materialism may help to explain differences in entrepreneurial activity across countries. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total entrepreneurial activity, as defined within the Global Entrepreneurship Monitor. The model is also tested for the rate of established businesses, as distinct from nascent and young firms. The measure for post-materialism is based upon Inglehart's four-item post-materialism index. Because of the known interactions between economic, cultural, and social factors found in previous research, a set of economic, demographic and social factors is included to investigate the independent role post-materialism plays in prediction of entrepreneurial activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries, world-wide, are used to test the hypotheses, based on intersecting data available from the Global Entrepreneurship Monitor, World Values Survey and other published sources. Findings confirm the significance of post-materialism in predicting total entrepreneurial activity and more particularly, new business formation rates, even when controlling for these other factors.

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File URL: http://hdl.handle.net/10.1007/s00191-006-0046-0
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Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 17 (2007)
Issue (Month): 2 (April)
Pages: 161-185

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Handle: RePEc:spr:joevec:v:17:y:2007:i:2:p:161-185
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  1. Robinson, Peter B. & Sexton, Edwin A., 1994. "The effect of education and experience on self-employment success," Journal of Business Venturing, Elsevier, vol. 9(2), pages 141-156, March.
  2. André van Stel & Roy Thurik & Sander Wennekers & Niels Noorderhaven, 2004. "The role of dissatisfaction and per capita income in explaining self-employment across 15 European countries," Scales Research Reports N200407, EIM Business and Policy Research.
  3. David B. Audretsch & Roy Thurik & Andre van Stel & M.A. Carree, 2006. "Does Self-Employment Reduce Unemployment?," Papers on Entrepreneurship, Growth and Public Policy 2005-07, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  4. 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.
  5. Baum, J. Robert & Olian, Judy D. & Erez, Miriam & Schnell, Eugene R. & Smith, Ken G. & Sims, Henry P. & Scully, Judith S. & Smith, Ken A., 1993. "Nationality and work role interactions: A cultural contrast of Israeli and U.S. entrepreneurs' versus managers' needs," Journal of Business Venturing, Elsevier, vol. 8(6), pages 499-512, November.
  6. Frederic Delmar & Per Davidsson, 2000. "Where do they come from? Prevalence and characteristics of nascent entrepreneurs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 12(1), pages 1-23, January.
  7. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
  8. Roy Thurik & Isabel Grilo, 2006. "Latent and actual entrepreneurship in Europe and the US: some recent developments," Scales Research Reports N200514, EIM Business and Policy Research.
  9. Audretsch, David B & Thurik, A R Roy, 2000. "Impeded Industrial Restructuring: The Growth Penalty," CEPR Discussion Papers 2648, C.E.P.R. Discussion Papers.
  10. André van Stel & Roy Thurik & Ingrid Verheul, 2004. "Explaining female and male entrepreneurship across 29 countries," Scales Research Reports N200403, EIM Business and Policy Research.
  11. Roy Thurik & Isabel Grilo, 2006. "Entrepreneurial engagement levels in the European Union," Scales Research Reports N200515, EIM Business and Policy Research.
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  13. Shane, Scott, 1993. "Cultural influences on national rates of innovation," Journal of Business Venturing, Elsevier, vol. 8(1), pages 59-73, January.
  14. Uhlaner, L.M. & Thurik, A.R. & Hutjes, J., 2002. "Post-Materialism as a Cultural Factor Influencing Entrepreneurial Activity across Nations," ERIM Report Series Research in Management ERS-2002-62-STR, 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 University Rotterdam.
  15. Andreas Freytag & Roy Thurik, 2007. "Entrepreneurship and its determinants in a cross-country setting," Journal of Evolutionary Economics, Springer, vol. 17(2), pages 117-131, April.
  16. Schultz, T. Paul, 1989. "Women's changing participation in the labor force : a world perspective," Policy Research Working Paper Series 272, The World Bank.
  17. Teece, David J, 1993. "The Dynamics of Industrial Capitalism: Perspectives on Alfred Chandler's Scale and Scope," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 199-225, March.
  18. Sander Wennekers & Roy Thurik & Andr� van Stel & Niels Noorderhaven, 2003. "Uncertainty Avoidance and the Rate of Business Ownership across 22 OECD Countries, 1976-2000," Tinbergen Institute Discussion Papers 03-089/3, Tinbergen Institute, revised 01 Sep 2004.
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  23. Roy Thurik & Sander Wennekers & Lorraine Uhlaner, 2002. "Entrepreneurship and economic performance: a macro perspective," Scales Research Reports N200220, EIM Business and Policy Research.
  24. Ingrid Verheul & Sander Wennekers & David Audretsch & Roy Thurik, 2001. "An Eclectic Theory of Entrepreneurship: Policies, Institutions and Culture," Tinbergen Institute Discussion Papers 01-030/3, Tinbergen Institute.
  25. Tiessen, James H., 1997. "Individualism, collectivism, and entrepreneurship: A framework for international comparative research," Journal of Business Venturing, Elsevier, vol. 12(5), pages 367-384, September.
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