IDEAS home Printed from https://ideas.repec.org/a/now/fntent/0300000034.html
   My bibliography  Save this article

New Firm Creation: A Global Assessment of National, Contextual and Individual Factors

Author

Listed:
  • Reynolds, Paul D.

Abstract

The prevalence of individuals actively involved in business creation among 75 countries varies from one in thirty (Japan, Belgium, France) to one in three (Peru, Uganda). Predictive models reflecting five national aspects — economic, structural, centralized control, population potential for entrepreneurship, and cultural support — are able to account for 63% to 93% of the variation in 23 types of business creation. The most important factors associated with the prevalence of business creation are the capacity of the population to participate in business start-ups, a high prevalence of small businesses, participation of women in the labor force, the presence of informal investors, emphasis on traditional rather than secular–rational values, presence of young adults, and income inequality. The use of log linear regression modeling to predict individual participation in 15 types of business creation explained from 14% to 41% of the variance. Personal attributes, national cultural and social norms, and personal context were much more likely to be associated with individual participation in business creation than characteristics of the national economy, economic structure, population readiness for business creation or centralized control of economic activity. The primary policy implication is that efforts to directly prepare individuals for business creation are more likely to have an impact compared to adjustments in regulatory procedures or legal standards. The assessment demonstrates the considerable value from harmonized cross national data on business creation and national attributes. There remains, however, substantial opportunity for improving understanding of the entrepreneurial process.

Suggested Citation

  • Reynolds, Paul D., 2011. "New Firm Creation: A Global Assessment of National, Contextual and Individual Factors," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 6(5–6), pages 315-496, June.
  • Handle: RePEc:now:fntent:0300000034
    DOI: 10.1561/0300000034
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1561/0300000034
    Download Restriction: no

    File URL: https://libkey.io/10.1561/0300000034?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Diana M. Hechavarría & Amy E. Ingram, 2019. "Entrepreneurial ecosystem conditions and gendered national-level entrepreneurial activity: a 14-year panel study of GEM," Small Business Economics, Springer, vol. 53(2), pages 431-458, August.
    2. Xie, Zhimin & Wang, Xia & Xie, Lingmin & Dun, Shuai & Li, Jiaxin, 2021. "Institutional context and female entrepreneurship: A country-based comparison using fsQCA," Journal of Business Research, Elsevier, vol. 132(C), pages 470-480.
    3. Hong, Michelle C. & Lin, Hsing-Er & Hsu, Dan K. & Shi, Yongchuan, 2021. "When ownership of the venture triggers cofounders’ unethical pro-venture behavior," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    4. María J. Angulo-Guerrero & Elena Bárcena-Martín & Samuel Medina-Claros & Salvador Pérez-Moreno, 2024. "Labor market regulation and gendered entrepreneurship: a cross-national perspective," Small Business Economics, Springer, vol. 62(2), pages 687-706, February.
    5. Pradhan, Jaya Prakash & Husain, Tareef, 2021. "Drivers of SME Formation in Indian States: The Empirics," MPRA Paper 25061, University Library of Munich, Germany.
    6. Kim, Phillip H. & Longest, Kyle C. & Lippmann, Stephen, 2015. "The tortoise versus the hare: Progress and business viability differences between conventional and leisure-based founders," Journal of Business Venturing, Elsevier, vol. 30(2), pages 185-204.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:now:fntent:0300000034. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucy Wiseman (email available below). General contact details of provider: http://www.nowpublishers.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.