The propensity to business startup: Evidence from Global Entrepreneurship Monitor (GEM) data in Saudi Arabia

Abstract

Purpose

The purpose of this study is to assess the determining factors of entrepreneurial business startup in Saudi Arabia from an eclectic perspective.

Design/methodology/approach

Based on Global Entrepreneurship Monitor data of 2000 Saudi Arabian respondents, the study analyzes a multitude of individual factors which are classified into four groups: financial resources; social legitimacy; entrepreneurial personality; and entrepreneurial competencies. Gender and education are moderating variables influencing the relationship, whereas age is a control variable using binary logistic regression technique.

Findings

Out of ten hypotheses, only four hypotheses, namely, income, fear of failure, perception of high status and knowledge of other entrepreneurs, have a significant relationship with the possibility of a business startup.

Originality/value

Implications of these findings and directions for future research are discussed.

Citation

Abu Bakar, A.R., Ahmad, S.Z., Wright, N.S. and Skoko, H. (2017), "The propensity to business startup: Evidence from Global Entrepreneurship Monitor (GEM) data in Saudi Arabia", Journal of Entrepreneurship in Emerging Economies, Vol. 9 No. 3, pp. 263-285. https://doi.org/10.1108/JEEE-11-2016-0049