IDEAS home Printed from https://ideas.repec.org/a/rom/mancon/v15y2021i1p479-491.html
   My bibliography  Save this article

Entrepreneurial Motivations To Start New Businesses: A Panel Data Analysis

Author

Listed:
  • Ane-Mari ANDRONICEANU
  • Jani KINNUNEN
  • Irina GEORGESCU

Abstract

This paper explores the effects of attitudes on total early-stage entrepreneurial activity (TEA). The data is obtained from the Global Entrepreneurship Monitor’s Adult Population Surveys (APS) on the characteristics and motivations of individuals to start new businesses. The dataset consists, e.g., of individuals’ entrepreneurial intentions, their perceived capabilities, opportunities, and risks as well as the share of female-male entrepreneurs. The time-series for 16 European and Latin American countries together with Taiwan and Iran cover the research period 2011-2019. All countries with long enough time-series data are included. The research methodology tests Random and Fixed Effects Models. The latter model becomes selected leading to a model explaining 95% (R2) of the variation in TEA. The results of the rather heterogeneous sample of countries show that when individuals recognize their own capabilities to start and run businesses, they also have entrepreneurial intentions, which both have great significant positive effects on the early-stage entrepreneurial activity. Interestingly, fear of failure, which may prevent individuals to start a business, had also positive effects on TEA. This suggests that fear of failure goes hand-in-hand with the willingness to start new businesses. Further, testing the predictive power of the obtained Fixed Effects Model demonstrated it highly accurate. For future research, countries may be clustered by their attitudes and entrepreneurial conditions, which were not considered in this study, when time-series analysis may reveal different set of indicators driving entrepreneurship, e.g., in Europe and Latin America.

Suggested Citation

  • Ane-Mari ANDRONICEANU & Jani KINNUNEN & Irina GEORGESCU, 2021. "Entrepreneurial Motivations To Start New Businesses: A Panel Data Analysis," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 479-491, November.
    • Handle: RePEc:rom:mancon:v:15:y:2021:i:1:p:479-491
    DOI: 10.24818/IMC/2021/03.04
    as

    Download full text from publisher

    File URL: https://conferinta.management.ase.ro/archives/2021/pdf%20IMC%202021/3%20PDF%20S3%20IMC%202021/3_4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.24818/IMC/2021/03.04?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
    ---><---

    References listed on IDEAS

    as
    1. Valentina Diana Rusu & Adina Dornean, 2019. "The Quality of Entrepreneurial Activity and Economic Competitiveness in European Union Countries: A Panel Data Approach," Administrative Sciences, MDPI, vol. 9(2), pages 1-21, April.
    2. Jani KINNUNEN & Armenia ANDRONICEANU & Irina GEORGESCU, 2019. "The Role of Economic and Political Features in Classification of Countries-in-Transition by Human Development Index," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 23(4), pages 26-40.
    3. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    4. Irina GEORGESCU & Jani KINNUNEN & Armenia ANDRONICEANU & Ane-Mari ANDRONICEANU, 2020. "A Computational Approach to Economic Inequality, Happiness and Human Development," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 24(4), pages 16-28.
    5. Nanik ISTIANINGSIH & Ariyanto MASNUN & Widya PRATIWI, 2020. "Managerial Performance Models Through Decision Making And Emotional Intelligence In Public Sector," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(35), pages 153-166, December.
    6. Nagwa Babiker Abdalla YOUSIF & Katarzyna GRONDYS & Salah GAD & Walaa ELSAYED, 2020. "Knowledge Management In Non-Governmental Organizations (Ngos)," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(35), pages 90-108, December.
    7. Daiva Tamulevičienė & Armenia Androniceanu & Armenia Androniceanu, 2020. "Selection of the indicators to measure an enterprise’s value and its changes in the controlling system for medium-sized enterprises," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 1440-1458, March.
    8. Chaiyawit Muangmee & Zdzisława Dacko-Pikiewicz & Nusanee Meekaewkunchorn & Nuttapon Kassakorn & Bilal Khalid, 2021. "Green Entrepreneurial Orientation and Green Innovation in Small and Medium-Sized Enterprises (SMEs)," Social Sciences, MDPI, vol. 10(4), pages 1-15, April.
    9. Romualdas GINEVICIUS & Katarzyna SZCZEPANSKAWOSZCZYNA & Marek SZARUCKI & Andrius STASIUKYNAS, 2021. "Assessing Alternatives To The Development Of Administrativeeconomic Units Applying The Fare-M Method," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2021(36), pages 6-24, June.
    10. Ladislav Mura & Zuzana Hajduová, 2021. "Small and medium enterprises in regions - empirical and quantitative approach," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 3(2), pages 252-266, June.
    11. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    12. Armenia ANDRONICEANU, 2020. "Major Structural Changes In The Eu Policies Due To The Problems And Risks Caused By Covid-19," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(34), pages 137-149, June.
    13. Irina KOSACH & Anastasiia DUKA & Grygoriy STARCHENKO & Olena MYHAYLOVSKA & Artur ZHAVORONOK, 2020. "Socio-Economic Viability Of Public Management In The Context Of European Integration Processes," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(35), pages 139-152, December.
    14. Katarzyna Grondys & Oliwia Ślusarczyk & Hafezali Iqbal Hussain & Armenia Androniceanu, 2021. "Risk Assessment of the SME Sector Operations during the COVID-19 Pandemic," IJERPH, MDPI, vol. 18(8), pages 1-19, April.
    15. Armenia ANDRONICEANU, 2021. "Transparency In Public Administration As A Challenge For A Good Democratic Governance," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2021(36), pages 149-164, June.
    16. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ane-Mari ANDRONICEANU & Irina GEORGESCU & Jani KINNUNEN, 2022. "A New Entrepreneurial Motivations Profile For Starting New Business By Using A Panel Data Analysis," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 14(1), pages 5-16, March.
    2. Jessica M. Mc Lay & Roy Lay-Yee & Barry J. Milne & Peter Davis, 2015. "Regression-Style Models for Parameter Estimation in Dynamic Microsimulation: An Empirical Performance Assessment," International Journal of Microsimulation, International Microsimulation Association, vol. 8(2), pages 83-127.
    3. Huy Quang Doan, 2019. "Trade, Institutional Quality and Income: Empirical Evidence for Sub-Saharan Africa," Economies, MDPI, vol. 7(2), pages 1-23, May.
    4. Mukhopadhyay, Jhuma & Chakraborty, Indrani, 2017. "Foreign institutional investment, business groups and firm performance: Evidence from India," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 454-465.
    5. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    6. Charles Shaaba Saba & Nicholas Ngepah, 2022. "ICT Diffusion, Industrialisation and Economic Growth Nexus: an International Cross-country Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2030-2069, September.
    7. António Afonso & M. Carmen Blanco-Arana, 2024. "The persistence of gender pay and employment gaps in European countries," Working Papers REM 2024/0338, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    8. Marcus Tamm & Harald Tauchmann & Stefan Greß & Jürgen Wasem, 2005. "Price Elasticities and Social Health Insurance Choice in Germany: A Dynamic Panel Data Approach," RWI Discussion Papers 0028, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    9. Krishna Chaitanya Vadlamannati & Artur Tamazian, 2017. "Are Left-Wing Governments Really Pro-Labor? An Empirical Investigation for Latin America," Kyklos, Wiley Blackwell, vol. 70(1), pages 129-160, February.
    10. Mogues, Tewodaj & Benin, Samuel, 2012. "Do External Grants to District Governments Discourage Own Revenue Generation? A Look at Local Public Finance Dynamics in Ghana," World Development, Elsevier, vol. 40(5), pages 1054-1067.
    11. Sascha Tobias Wengerek & Benjamin Hippert & André Uhde, 2019. "Risk allocation through securitization - Evidence from non-performing loans," Working Papers Dissertations 58, Paderborn University, Faculty of Business Administration and Economics.
    12. Rahman, Mizanur, 2008. "The Impact of a Common Currency on East Asian Production Networks and China’s Exports Behavior," MPRA Paper 13931, University Library of Munich, Germany.
    13. Jing Jia & Zhongtian Li, 2022. "Corporate Environmental Performance and Financial Distress: Evidence from Australia," Australian Accounting Review, CPA Australia, vol. 32(2), pages 188-200, June.
    14. Chanchal Chatterjee & Tirthankar Nag, 2023. "Do women on boards enhance firm performance? Evidence from top Indian companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(2), pages 155-167, June.
    15. Antonio Ruiz Porras, 2016. "La investigación econométrica mediante paneles de datos:historia, modelos y usos en México," Archivos Revista Economía y Política., Facultad de Ciencias Económicas y Administrativas, Universidad de Cuenca., vol. 24, pages 11-32, Julio.
    16. Fenech, Jean-Pierre & Yap, Ying Kai & Shafik, Salwa, 2014. "Can the Chinese banking system continue to grow without sacrificing loan quality?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 31(C), pages 315-330.
    17. Andrés Rodríguez‐Pose & Vassilis Tselios, 2009. "Education And Income Inequality In The Regions Of The European Union," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 411-437, August.
    18. Seo, Myung Hwan & Shin, Yongcheol, 2016. "Dynamic panels with threshold effect and endogeneity," Journal of Econometrics, Elsevier, vol. 195(2), pages 169-186.
    19. repec:lic:licosd:14304 is not listed on IDEAS
    20. Neifar, Malika, 2020. "Different dimensions Bank performance comparisons IBs vs CBs – Quatar case," MPRA Paper 101375, University Library of Munich, Germany.
    21. Alessio Ciarlone, 2019. "The relationship between financial development and growth: the case of emerging Europe," Questioni di Economia e Finanza (Occasional Papers) 521, Bank of Italy, Economic Research and International Relations Area.

    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:rom:mancon:v:15:y:2021:i:1:p:479-491. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Ciocoiu Nadia Carmen (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.html .

    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.