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Export Orientation among New Ventures and Economic Growth

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  • Hessels, S.J.A.
  • van Stel, A.J.

Abstract

While it is generally acknowledged that entrepreneurship as well as export activity may both be important strategies for achieving national economic growth, it has remained unclear how export activity among new ventures is related to economic growth. This paper investigates whether the presence of export-oriented entrepreneurs is a more important determinant of economic growth than entrepreneurial activity in general. We focus on the national or macro-level and use data from the Global Entrepreneurship Monitor for a sample of 36 countries. An important advantage of using the macro-level is that indirect effects of exporting entrepreneurs that reach further than the performance of these firms themselves (e.g. spillovers) are captured in the analysis. To our knowledge, no attempt has been made thus far to link international activity of early-stage ventures to macro-economic out-comes. Our results suggest that export-oriented entrepreneurship is indeed more important for achieving high economic growth rates than entrepreneurial activity in general. This suggests that international activity by small and new firms strongly contributes to higher levels of competition and, consequently, to the emergence of highly dynamic economies and higher levels of economic growth.

Suggested Citation

  • Hessels, S.J.A. & van Stel, A.J., 2007. "Export Orientation among New Ventures and Economic Growth," ERIM Report Series Research in Management ERS-2007-008-ORG, 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.
    • Handle: RePEc:ems:eureri:8583
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    1. Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, February.
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    Cited by:

    1. André van Stel & Jolanda Hessels & Dirk De Clercq, 2006. "Knowledge spillovers and entrepreneurs' export orientation," Scales Research Reports H200619, EIM Business and Policy Research.
    2. Castaño, María-Soledad & Méndez, María-Teresa & Galindo, Miguel-Ángel, 2015. "The effect of social, cultural, and economic factors on entrepreneurship," Journal of Business Research, Elsevier, vol. 68(7), pages 1496-1500.
    3. Tsui-Yii Shih & Rumintha Wickramasekera, 2011. "Export decisions within Taiwanese electrical and electronic SMEs: The role of management characteristics and attitudes," Asia Pacific Journal of Management, Springer, vol. 28(2), pages 353-377, June.
    4. Jolanda Hessels, 2008. "International Entrepreneurship: An Introduction, Framework and Research Agenda," Scales Research Reports H200823, EIM Business and Policy Research.

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    More about this item

    Keywords

    Economic growth; Entrepreneurship; Export; Global Entrepreneurship Monitor;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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