Search results

As an economic development strategy, entrepreneurship policies should target innovative activities – those which Schumpeter described as leading to new goods, production methods, markets, input sources, or new industries. However, popular entrepreneurship proxies, such as firm births (<500 employees) and sole proprietorships, capture multiple types of entrepreneurship which may have conflicting qualities. To address the need for more accurate measures of Schumpeterian activity, indices are constructed to specifically measure the relative amount of Schumpeterian activity among US states. The paper aims to discuss these issues.

Four composite indices of Schumpeterian activity are constructed using different methods to combine variables related to innovative activity into single indicator, since there is uncertainty about the weighting of dimensions: principal component analysis (PCA), factor analysis (FA), data envelopment analysis and equal weights. Robustness checks were used to compare state rankings across indices. These indices were also compared to common entrepreneurship proxies and real GDP to demonstrate and justify their measurement of Schumpeterian activity.

The results show that the Schumpeterian Activity Indices (SAIs) similarly rank states and measure phenomena different from the common proxies of entrepreneurship. Furthermore, these indices better predict GDP than the common proxies. Lastly, state rankings based upon the SAIs support previous research suggesting that innovation and agglomeration economies are interrelated.

The paper demonstrates a methodology for constructing a measure of innovative activity, which is necessary to develop and evaluate entrepreneurship policy for economic development.

Having a varied set of skills is essential for becoming and succeeding in entrepreneurship, and developing students’ entrepreneurial skills is a key objective of entrepreneurship education programs at universities worldwide. Moreover, measuring the learning outcomes of education is essential for designing effective training. This review provides a framework of the variety of skills measured in the entrepreneurship education literature.

We reviewed the entrepreneurship education literature and identified 79 studies that used skill-related measures. We identified, grouped, and operationalized entrepreneurial skills related to the entrepreneurial tasks of sensing, acting, and mobilizing under uncertain conditions.

We synthesized the current knowledge related to developing various entrepreneurial skills and provided a framework of ten types of entrepreneurship-related skills measured in prior studies of entrepreneurship education initiatives. We showed that entrepreneurship education develops various skills relevant to entrepreneurship and other concepts, indicating the value of entrepreneurship education for increasing students’ general skill level.

Our framework provides a valuable tool for discussing what skills-related training should be included in entrepreneurship education curricula and how the learning outcomes from entrepreneurship education can be measured. Focusing on students’ entrepreneurial skills is closer to entrepreneurial action than intentions or mindsets, and skills are a more realis-tic and inclusive outcome of entrepreneurship education than start-up rates and self-employment. Thus, entrepreneurial skills are a useful concept for clarifying and measuring the specific learning outcomes of entrepreneurship education.

The purpose of this paper is to provide a country‐level consideration of the relationship between entrepreneurship, immigration and education. In contrast to studies that report on immigration and entrepreneurship in a region or single country, the authors seek to determine whether levels of immigration, and the level of education obtained by the immigrants, are predictive of levels of entrepreneurship activity. A common set of variables and data from developed countries are used to test the hypothesized relationships.

Using data on 21 OECD countries and five measures of entrepreneurship from the Global Entrepreneurship Monitor project, the authors assess the significance of immigration and education level on entrepreneurial activity using regression analysis.

The stock of immigrants in a country was found to be predictive of the proportion of that country's population involved in starting and managing a new business (early stage entrepreneurship), as well as the growth expectations held by those early‐stage entrepreneurs. Also, levels of high growth and high growth expectation entrepreneurship were predicted by the proportion of more highly‐educated immigrants.

This study provides national‐level comparative evidence linking entrepreneurial activity to immigration and to the level of education obtained by those immigrants, thereby adding to our understanding of immigration, education and entrepreneurship. The results have implications for the immigration policies of countries seeking to add to their economic base by encouraging entrepreneurship and job creation.

The growing number of studies shows that government policies and measures are critical in determining entrepreneurship levels of regions. Any changes in the government policies and measures are, therefore, expected to bring significant changes at the entrepreneurship levels. This paper aims to explore the importance of the government policies and measures, along with supply and demand-side determinants in regional entrepreneurship in Turkey and explains the convergence of entrepreneurship among two distinct periods corresponding to changes in the government policies and measures concerning entrepreneurship.

Looking at a study on 81 NUTS-III regions of Turkey, this paper focusses on regional determinants important in the separation of regions with different entrepreneurship trajectories (based on the initial level and the rate of increase in entrepreneurship). Using discriminant function analysis, this paper tries to show how far government policies are important in distinguishing regions with different entrepreneurship levels.

The outcomes of the analysis show that certain policies and measures recently introduced have become instrumental in triggering higher entrepreneurship levels in regions with already higher levels of entrepreneurship, but not in regions with initially lower levels of entrepreneurship.

This study contributes to the existing regional entrepreneurship literature through introducing the research findings on the importance of government policies and institutions on regional entrepreneurship, besides the role of regional capacities and assets.

Cross-country studies have shown that higher costs to starting a business tend to reduce entrepreneurship (Chambers and Munemo, 2019) and that an unfavorable environment for business can increase poverty and income inequality (Chambers et al., 2019a; Djankov et al., 2018). Building on the current literature, the authors test whether barriers to starting a business at the state and city level in the USA are associated with changes in entrepreneurship and income inequality.

Measures of entrepreneurship (establishment entry rate and exit rate) are regressed on measures of barriers to entry in a cross-section of 50 states as well as a cross-section of 73 cities in the USA. Further, the authors regress measures of income inequality on measures of barriers to entry using the same two cross-sections. State level data on barriers to entry are from Teague (2016), published in the Journal of Entrepreneurship and Public Policy. City level data on barriers to starting a business are from the Doing Business in North America (DBNA) dataset.

Results show that there is a negative and significant association between barriers to starting a business and the rate of firm exit. A standard deviation increase in barriers to entry is associated with a five percent decrease in the firm exit rate at the state level. The authors find only limited evidence that barriers to entry are associated with income inequality.

Despite a large volume of scholarship on how regulation and barriers to entry influence entrepreneurship, no study (to the authors’ knowledge) has investigated how general entry regulation affects the entry or exit rate of establishments at the state or municipal level in the USA.

The purpose of this paper is to establish a readiness for entrepreneurship theoretical framework. The paper marks the first of three stages to build a scale to measure readiness for entrepreneurship.

The current paper is conceptual. The research approach consists of formulating proposals and definitions based on an extensive literature review.

The literature review reveals that no such readiness for entrepreneurship measurement tool exists. The literature review also yields definitions and components of key concepts for the theoretical framework.

The paper offers a new, holistic perspective of readiness for entrepreneurship. This research addresses measurement of readiness for entrepreneurship from a rigorous, scientific approach. The main limitation lies in capturing and organizing extensive information on topics from diverse disciplines (i.e. sociology, psychology, and business management).

This theoretical framework enables the design and creation of a scale to measure readiness for entrepreneurship. The literature review confirmed the possibility of building such a measurement scale.

A complex tool able to identify and measure readiness for entrepreneurship would be applicable in numerous situations including the following: determining entrepreneurial abilities, analyzing potential for entrepreneurship, simulating organizational transformations, and evaluating investment recommendations.

No holistic, scientifically grounded tool to measure readiness for entrepreneurship exists, yet there are numerous entrepreneurial capacity tests with no rigorous scientific grounding. As a remedy, this paper provides solid scientific foundations upon which to develop an instrument for measuring readiness for entrepreneurship.

Inspired by the debates among economists about the role of beliefs and informal institutions in economic development, the purpose of this paper is to derive and test different hypotheses about the ways beliefs about the market economy, institutions and policies, and productive entrepreneurship are intertwined.

The paper derives from the literature three hypotheses unified around the idea of (political, cultural, and market) entrepreneurship. The paper then tests these hypotheses by running various country-level regressions intended to check the relationships between formal institutions and policies (measured by World Governance Indicators and by the Economic Freedom of the World index), productive entrepreneurship (measured by total factor productivity form the Penn World Table), and different kinds of market beliefs from the World Values Survey (WVS).

The sociological hypothesis says that more pro-market beliefs provide incentives for innovation by recognizing entrepreneurship as a dignifying activity. The political hypothesis says that people with more pro-market beliefs will demand, and therefore live with, more pro-market institutions and policies. The “Schumpeterian” hypothesis says that it is market institutions that make it possible for entrepreneurs to run against anti-market beliefs, and innovate. The results support the Schumpeterian hypothesis, mainly because market beliefs predict institutions and policies as well as productivity very poorly, while formal institutions and policies make a much better job of this.

The paper contrasts three different hypotheses concerned with the broader consequences of political, cultural, and market entrepreneurship and tests them by making use of the time structure of the observations found in the WVS.

The purpose of this paper is to test whether entrepreneurship is a significant factor in explaining economic growth at the state level.

This paper, unlike previous work, uses the Kauffman Index of Entrepreneurial Activity (KIEA) as the measure of entrepreneurial activity. Based on standard growth regressions using real per capita gross state product, real per capita personal income and employment growth, we test for the independent role that entrepreneurial activity may have on state economic growth.

We find that an increase in the level of entrepreneurial activity is robustly associated with an increase in economic growth. Such findings reinforce calls for policy changes at the state level that promote more productive entrepreneurship.

These conclusions are tentative. The findings are based on the growth of the 50 states over a relatively short period. A longer data set would be preferable, if data were available. Moreover, the author has not attempted to distinguish between different categories of entrepreneurship, for example productive and unproductive entrepreneurship.

Such findings reinforce calls for policy changes at the state level that promote more productive entrepreneurship. This would include, among others, changes such as reducing or eliminating state income taxes and setting strict limits on the government's use of eminent domain and environmental property takings.

The study uses the Kauffman Index of Entrepreneurial Activity (KIEA), arguably a superior measure of state‐level entrepreneurial activity, to explain state economic growth. The topic is timely and the results have important policy implications.

The importance of sustainable development has become increasingly significant in today’s fast-paced world. The 17 sustainable development goals (SDGs) aim to solve a range of environmental, economic and social challenges, which requires global collaboration among governments and private organisations. In light of this, social entrepreneurship has garnered significant attention as it combines the social purpose of non-profits with the market-driven approach of for-profits to address SDG goals. Yet the cognitive processes underpinning the career decisions of social entrepreneurs remain underexplored. This study aims to develop and validate a scale to measure social entrepreneurial career decisions based on the appraisal of perceived challenges.

The study followed the steps of tool development and was carried out in three phases: item analysis, exploratory factor analysis (EFA) and confirmatory factor analysis (CFA).

The final 20-item scale focuses on the appraisal components in pre-entry social entrepreneurial career decision-making and has four factors, which are relevance, coping potential, knowledge and resources and normative significance.

The study contributes to the literature on entrepreneurial cognition, specifically focusing on social entrepreneurship. The scale could guide model testing and quantitative research in social entrepreneurial cognition. The four-dimensional structure identified in the study may also have implications for researchers interested in the antecedents and effects of social entrepreneurial decision-making.

Accurate measurement of cognitive appraisal is necessary to understand the perceived challenges and thought processes of potential social entrepreneurs. The scale could be used to examine the cognitive appraisal patterns among students. Social entrepreneurship educators and policymakers can use the scale to design and assess educational programs.

Distinct from existing studies, this scale offers a multidimensional approach that captures the stages of career decision-making, providing a robust tool to enhance our understanding of the decision-making dynamics in social entrepreneurship.

This chapter shows how to construct and test case-based macro models. The chapter makes use of national data to examine influences on quality-of-life of national cultures as complex wholes and entrepreneurship activities in Brazil, Russia, India, China, Germany, and the United States (the six focal nations) plus Denmark (a small-size, economically developed, nation). The study tests McClelland’s (1961) and more recent scholars’ proposition that some cultural configurations nurture entrepreneur startups, while other cultures are biased toward thwarting startups. The study applies complexity theory to develop and empirically test a general theory of cultures’, entrepreneurship’s, and innovation’s impact on quality-of-life across nations. Because culture represents a complex whole of attitudes, beliefs, values, and behavior, the study applies a set-theoretic approach to theory development and testing of alternative cultural configurations. Each of 28 economical developed and developing nations is scored for the level of the national cultures for each of six focal countries. The study selected for the study enables multi-way comparisons of culture-entrepreneurship-innovation-QOL among large- and small-sized developing and developed nations. The findings graphically present the complex national cultural configuration (x-axis) with entrepreneur nurture/thwart (y-axis) of the 28 nations compared to the six focal nations. The findings also include recognizing national cultures (e.g., Switzerland, the United States) nurturing entrepreneurial behavior versus other national cultures (e.g., Brazil and India) thwarting entrepreneurial behavior. The study concludes with a call to recognize the implicit shift in culturally implicit thinking and behavior necessary for advancing national platforms designed to successfully nurture entrepreneurship. Entrepreneur strategy implications include the observation that actions nurturing firm start-ups by nations low in entrepreneurship will unlikely to be successful without reducing such nations’ high levels of corruption.