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Variation in the level of activity across the stages of the entrepreneurial startup process-evidence from 35 countries

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  • Pia Arenius
  • Stefan Ehrstedt

Abstract

Alrich and Martinez (2001) pointed out that in “entrepreneurship many are called, but few are chosen”. Many entrepreneurs try seriously to create a lasting organization, but most of them do not pass through the three stages of the entrepreneurial startup process. There is scarce research exploring the entrepreneurial startup process, particularly studying across countries the prevalence of individuals in the different stages. This paper uses data collected across 35 countries participating in the 2005 Global Entrepreneurship Monitor (GEM) study and we examine whether individual-level factors and national culture are related to the ratio of nascent entrepreneurs to potential entrepreneurs, and to the ratio of baby business owners to potential entrepreneurs. Our results show that there is significant variation across countries in how many individuals are active in the different stages of the entrepreneurial startup process. Our results also indicate that gender and age are related to a high ratio of nascent entrepreneurs to potential entrepreneurs.

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  • Pia Arenius & Stefan Ehrstedt, 2008. "Variation in the level of activity across the stages of the entrepreneurial startup process-evidence from 35 countries," Estudios de Economia, University of Chile, Department of Economics, vol. 35(2 Year 20), pages 133-152, December.
    • Handle: RePEc:udc:esteco:v:35:y:2008:i:2:p:133-152
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    1. Ana Iolanda Vodă & Alina-Petronela Haller & Alexandru Anichiti & Gina Ionela Butnaru, 2020. "Testing Entrepreneurial Intention Determinants in Post-Transition Economies," Sustainability, MDPI, vol. 12(24), pages 1-26, December.
    2. Zoltan J. Acs & José Ernesto Amorós, 2008. "Introduction: The startup process," Estudios de Economia, University of Chile, Department of Economics, vol. 35(2 Year 20), pages 121-132, December.
    3. Li-Min Chuang & Cheng-Chung Yeh & Chung-Wei Lin, 2019. "Applying the self-organizing maps to analyze and interpret the clustering and characteristics of nascent entrepreneurs: A cross-country study," Business & Entrepreneurship Journal, SCIENPRESS Ltd, vol. 8(1), pages 1-3.
    4. Iuliia S. Pinkovetskaia Tatiana V. Gromova Irina N. Nikitina, 2020. "Assessment of Women’s Early-stage Entrepreneurial Activity in 2018," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 23(1), pages 35-49, May.
    5. Rodriguez Torres, Omar, 2021. "How different are necessity and opportunity firms? Evidence from a quantile analysis of the Colombian microenterprise sector," MERIT Working Papers 2021-019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. 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.
    7. Howard Frederick & Erik Monsen, 2011. "New Zealand’s perfect storm of entrepreneurship and economic development," Small Business Economics, Springer, vol. 37(2), pages 187-204, September.
    8. 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.
    9. Mahnoor Asif & Anum Ellahi, 2016. "Correlates of Entrepreneurship in Pakistan: The Regional Dimension," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 193-210, September.
    10. Lennon Sabatini, Joaquin & Franetovic Parker, Francisco, 2006. "Variables perceptuales y emprendimiento naciente en Chile: oportunidad versus necesidad [Perceptual variables and nascent entrepreneurship in Chile: opportunity versus necessity]," MPRA Paper 55446, University Library of Munich, Germany.
    11. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.

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    More about this item

    Keywords

    Startup process; stage prevalence rates; cross country comparison;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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