IDEAS home Printed from https://ideas.repec.org/a/udc/esteco/v35y2008i2p133-152.html
   My bibliography  Save this article

Variation in the level of activity across the stages of the entrepreneurial startup process-evidence from 35 countries

Author

Listed:
  • Pia Arenius
  • Stefan Ehrstedt

Abstract

Alrich and Martinez (2001) pointed out that in “entrepreneurship many are called, but few are chosen”. Many entrepreneurs try seriously to create a lasting organization, but most of them do not pass through the three stages of the entrepreneurial startup process. There is scarce research exploring the entrepreneurial startup process, particularly studying across countries the prevalence of individuals in the different stages. This paper uses data collected across 35 countries participating in the 2005 Global Entrepreneurship Monitor (GEM) study and we examine whether individual-level factors and national culture are related to the ratio of nascent entrepreneurs to potential entrepreneurs, and to the ratio of baby business owners to potential entrepreneurs. Our results show that there is significant variation across countries in how many individuals are active in the different stages of the entrepreneurial startup process. Our results also indicate that gender and age are related to a high ratio of nascent entrepreneurs to potential entrepreneurs.

Suggested Citation

  • Pia Arenius & Stefan Ehrstedt, 2008. "Variation in the level of activity across the stages of the entrepreneurial startup process-evidence from 35 countries," Estudios de Economia, University of Chile, Department of Economics, vol. 35(2 Year 20), pages 133-152, December.
    • Handle: RePEc:udc:esteco:v:35:y:2008:i:2:p:133-152
    as

    Download full text from publisher

    File URL: http://www.econ.uchile.cl/uploads/publicacion/a0e5ae5c-b9ea-4481-a915-2ff41cee60fb.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    2. Coate, Stephen & Tennyson, Sharon, 1992. "Labor Market Discrimination, Imperfect Information and Self Employment," Oxford Economic Papers, Oxford University Press, vol. 44(2), pages 272-288, April.
    3. Andrew Henley, 2007. "Entrepreneurial aspiration and transition into self-employment: evidence from British longitudinal data," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(3), pages 253-280, May.
    4. Gry Agnete Alsos & Lars Kolvereid, 1998. "The Business Gestation Process of Novice, Serial, and Parallel Business Founders," Entrepreneurship Theory and Practice, , vol. 22(4), pages 101-114, July.
    5. Lee, Sang M. & Peterson, Suzanne J., 2000. "Culture, entrepreneurial orientation, and global competitiveness," Journal of World Business, Elsevier, vol. 35(4), pages 401-416, January.
    6. Sander Wennekers & Andre van Stel & Niels Noorderhaven & Roy Thurik, 2004. "The Role Of Dissatisfaction And Per Capita Income In Explaining Self-Employment Across 15 European Countries," Papers on Entrepreneurship, Growth and Public Policy 2004-11, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    7. Kolvereid, Lars & Isaksen, Espen, 2006. "New business start-up and subsequent entry into self-employment," Journal of Business Venturing, Elsevier, vol. 21(6), pages 866-885, November.
    8. Tiessen, James H., 1997. "Individualism, collectivism, and entrepreneurship: A framework for international comparative research," Journal of Business Venturing, Elsevier, vol. 12(5), pages 367-384, September.
    9. Gatewood, Elizabeth J. & Shaver, Kelly G. & Gartner, William B., 1995. "A longitudinal study of cognitive factors influencing start-up behaviors and success at venture creation," Journal of Business Venturing, Elsevier, vol. 10(5), pages 371-391, September.
    10. Lorraine Uhlaner & Roy Thurik, 2010. "Postmaterialism Influencing Total Entrepreneurial Activity Across Nations," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 301-328, Springer.
    11. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    12. Lombard, Karen V, 2001. "Female Self-Employment and Demand for Flexible, Nonstandard Work Schedules," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 214-237, April.
    13. Burke, Andrew E & FitzRoy, Felix R & Nolan, Michael A, 2002. "Self-Employment Wealth and Job Creation: The Roles of Gender, Non-pecuniary Motivation and Entrepreneurial Ability," Small Business Economics, Springer, vol. 19(3), pages 255-270, November.
    14. Shane, Scott A., 1992. "Why do some societies invent more than others?," Journal of Business Venturing, Elsevier, vol. 7(1), pages 29-46, January.
    15. Beate Rotefoss & Lars Kolvereid, 2005. "Aspiring, nascent and fledgling entrepreneurs: an investigation of the business start-up process," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 17(2), pages 109-127, March.
    16. Isabel Grilo & Jesus-Maria Irigoyen, 2006. "Entrepreneurship in the EU: To Wish and not to be," Small Business Economics, Springer, vol. 26(4), pages 305-318, May.
    17. McGrath, Rita Gunther & MacMillan, Ian C. & Yang, Elena Ai-Yuan & Tsai, William, 1992. "Does culture endure, or is it malleable? Issues for entrepreneurial economic development," Journal of Business Venturing, Elsevier, vol. 7(6), pages 441-458, November.
    18. Cowling, Marc & Taylor, Mark, 2001. "Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, vol. 16(3), pages 167-175, May.
    19. Lola Fabowale & Barbara Orser & Allan Riding, 1995. "Gender, Structural Factors, and Credit Terms between Canadian Small Businesses and Financial Institutions," Entrepreneurship Theory and Practice, , vol. 19(4), pages 41-65, July.
    20. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-535, June.
    21. Verheul, Ingrid & Thurik, Roy, 2001. "Start-Up Capital: "Does Gender Matter?"," Small Business Economics, Springer, vol. 16(4), pages 329-345, June.
    22. Candida G. Brush, 1992. "Research on Women Business Owners: Past Trends, a New Perspective and Future Directions," Entrepreneurship Theory and Practice, , vol. 16(4), pages 5-30, July.
    23. Bates, Timothy, 1995. "Self-employment entry across industry groups," Journal of Business Venturing, Elsevier, vol. 10(2), pages 143-156, March.
    24. David Blanchflower & A Oswald, 1993. "Entrepreneurship," CEP Discussion Papers dp0134, Centre for Economic Performance, LSE.
    25. Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, vol. 45(4-6), pages 680-691, May.
    26. Paul D. Reynolds & Nancy M. Carter & William B. Gartner & Patricia G. Greene, 2004. "The Prevalence of Nascent Entrepreneurs in the United States: Evidence from the Panel Study of Entrepreneurial Dynamics," Small Business Economics, Springer, vol. 23(4), pages 263-284, November.
    27. Riding, Allan L. & Swift, Catherine S., 1990. "Women business owners and terms of credit: Some empirical findings of the Canadian experience," Journal of Business Venturing, Elsevier, vol. 5(5), pages 327-340, September.
    28. Fischer, Eileen M. & Reuber, A. Rebecca & Dyke, Lorraine S., 1993. "A theoretical overview and extension of research on sex, gender, and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 8(2), pages 151-168, March.
    29. Howard E. Aldrich & Martha Argelia Martinez, 2001. "Many are Called, but Few are Chosen: An Evolutionary Perspective for the Study of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 25(4), pages 41-56, July.
    30. Levesque, Moren & Minniti, Maria, 2006. "The effect of aging on entrepreneurial behavior," Journal of Business Venturing, Elsevier, vol. 21(2), pages 177-194, March.
    31. Niels Noorderhaven & Roy Thurik & Sander Wennekers & André van Stel, 2004. "The Role of Dissatisfaction and per Capita Income in Explaining Self–Employment across 15 European Countries," Entrepreneurship Theory and Practice, , vol. 28(5), pages 447-466, September.
    32. Lin, Zhengxi & Picot, Garnett & Compton, Janice, 2000. "The Entry and Exit Dynamics of Self-Employment in Canada," Small Business Economics, Springer, vol. 15(2), pages 105-125, September.
    33. Frederic Delmar & Per Davidsson, 2000. "Where do they come from? Prevalence and characteristics of nascent entrepreneurs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 12(1), pages 1-23, January.
    34. Pia Arenius & Maria Minniti, 2005. "Perceptual Variables and Nascent Entrepreneurship," Small Business Economics, Springer, vol. 24(3), pages 233-247, February.
    35. Anders Lundström & Lois A. Stevenson, 2005. "Entrepreneurship Policy: Theory and Practice," International Studies in Entrepreneurship, Springer, number 978-0-387-24202-6, December.
    36. Carter, Nancy M. & Gartner, William B. & Reynolds, Paul D., 1996. "Exploring start-up event sequences," Journal of Business Venturing, Elsevier, vol. 11(3), pages 151-166, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Ana Iolanda Vodă & Alina-Petronela Haller & Alexandru Anichiti & Gina Ionela Butnaru, 2020. "Testing Entrepreneurial Intention Determinants in Post-Transition Economies," Sustainability, MDPI, vol. 12(24), pages 1-26, December.
    2. Zoltan J. Acs & José Ernesto Amorós, 2008. "Introduction: The startup process," Estudios de Economia, University of Chile, Department of Economics, vol. 35(2 Year 20), pages 121-132, December.
    3. Li-Min Chuang & Cheng-Chung Yeh & Chung-Wei Lin, 2019. "Applying the self-organizing maps to analyze and interpret the clustering and characteristics of nascent entrepreneurs: A cross-country study," Business & Entrepreneurship Journal, SCIENPRESS Ltd, vol. 8(1), pages 1-3.
    4. Howard Frederick & Erik Monsen, 2011. "New Zealand’s perfect storm of entrepreneurship and economic development," Small Business Economics, Springer, vol. 37(2), pages 187-204, September.
    5. Iuliia S. Pinkovetskaia Tatiana V. Gromova Irina N. Nikitina, 2020. "Assessment of Women’s Early-stage Entrepreneurial Activity in 2018," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 23(1), pages 35-49, May.
    6. Rodriguez Torres, Omar, 2021. "How different are necessity and opportunity firms? Evidence from a quantile analysis of the Colombian microenterprise sector," MERIT Working Papers 2021-019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Heiko Bergmann & Ute Stephan, 2013. "Moving on from nascent entrepreneurship: measuring cross-national differences in the transition to new business ownership," Small Business Economics, Springer, vol. 41(4), pages 945-959, December.
    8. Hundera, Mulu, 2019. "Role conflict, coping strategies and female entrepreneurial success in sub-Saharan Africa," Other publications TiSEM 3e263b0c-3bf3-474a-8a20-b, Tilburg University, School of Economics and Management.
    9. Mahnoor Asif & Anum Ellahi, 2016. "Correlates of Entrepreneurship in Pakistan: The Regional Dimension," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 193-210, September.
    10. Lennon Sabatini, Joaquin & Franetovic Parker, Francisco, 2006. "Variables perceptuales y emprendimiento naciente en Chile: oportunidad versus necesidad [Perceptual variables and nascent entrepreneurship in Chile: opportunity versus necessity]," MPRA Paper 55446, University Library of Munich, Germany.
    11. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.

    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. Verheul, I. & Thurik, A.R. & Grilo, I., 2008. "Explaining Preferences and Actual Involvement in Self-Employment: New Insights into the Role of Gender," ERIM Report Series Research in Management ERS-2008-003-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.
    2. Verheul, Ingrid & Thurik, Roy & Grilo, Isabel & van der Zwan, Peter, 2012. "Explaining preferences and actual involvement in self-employment: Gender and the entrepreneurial personality," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 325-341.
    3. Peter van der Zwan & Ingrid Verheul & Roy Thurik & Isabel Grilo, 2009. "Entrepreneurial Progress: Climbing the Entrepreneurial Ladder in Europe and the US," Tinbergen Institute Discussion Papers 09-070/3, Tinbergen Institute, revised 17 Mar 2010.
    4. Nan Langowitz & Maria Minniti, 2007. "The Entrepreneurial Propensity of Women," Entrepreneurship Theory and Practice, , vol. 31(3), pages 341-364, May.
    5. Mahnoor Asif & Anum Ellahi, 2016. "Correlates of Entrepreneurship in Pakistan: The Regional Dimension," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 193-210, September.
    6. Sander Wennekers & Roy Thurik & André Stel & Niels Noorderhaven, 2010. "Uncertainty Avoidance and the Rate of Business Ownership Across 21 OECD Countries, 1976–2004," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 271-299, Springer.
    7. Ingrid Verheul & André Van Stel & Roy Thurik, 2006. "Explaining female and male entrepreneurship at the country level," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 18(2), pages 151-183, March.
    8. Per Davidsson & Scott Gordon, 2012. "Panel studies of new venture creation: a methods-focused review and suggestions for future research," Small Business Economics, Springer, vol. 39(4), pages 853-876, November.
    9. Brixy, Udo & Sternberg, Rolf & Stüber, Heiko, 2008. "From potential to real entrepreneurship," IAB-Discussion Paper 200832, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    11. Shirokova, Galina & Osiyevskyy, Oleksiy & Bogatyreva, Karina, 2016. "Exploring the intention–behavior link in student entrepreneurship: Moderating effects of individual and environmental characteristics," European Management Journal, Elsevier, vol. 34(4), pages 386-399.
    12. Ingrid Verheul & Martin Carree & Roy Thurik, 2009. "Allocation and productivity of time in new ventures of female and male entrepreneurs," Small Business Economics, Springer, vol. 33(3), pages 273-291, October.
    13. Erik Stam & David Audretsch & Joris Meijaard, 2009. "Renascent entrepreneurship," Springer Books, in: Uwe Cantner & Jean-Luc Gaffard & Lionel Nesta (ed.), Schumpeterian Perspectives on Innovation, Competition and Growth, pages 223-237, Springer.
      • Stam, F.C. & Audretsch, D.B. & Meijaard, J., 2006. "Renascent Entrepreneurship," ERIM Report Series Research in Management ERS-2006-017-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.
    14. Massimo Baù & Philipp Sieger & Kimberly A. Eddleston & Francesco Chirico, 2017. "Fail but Try Again? The Effects of Age, Gender, and Multiple–Owner Experience on Failed Entrepreneurs’ Reentry," Entrepreneurship Theory and Practice, , vol. 41(6), pages 909-941, November.
    15. Grilo, I. & Thurik, A.R. & Verheul, I. & van der Zwan, P.W., 2008. "Climbing the Entrepreneurial Ladder: The Role of Gender," ERIM Report Series Research in Management ERS-2007-098-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.
    16. Elena Bardasi & Shwetlena Sabarwal & Katherine Terrell, 2011. "How do female entrepreneurs perform? Evidence from three developing regions," Small Business Economics, Springer, vol. 37(4), pages 417-441, November.
    17. Jafari-Sadeghi, Vahid, 2020. "The motivational factors of business venturing: Opportunity versus necessity? A gendered perspective on European countries," Journal of Business Research, Elsevier, vol. 113(C), pages 279-289.
    18. Lorraine Uhlaner & Roy Thurik, 2010. "Postmaterialism Influencing Total Entrepreneurial Activity Across Nations," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 301-328, Springer.
    19. David Urbano & Sebastian Aparicio & Victor Querol, 2016. "Social progress orientation and innovative entrepreneurship: an international analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1033-1066, December.
    20. Niels Bosma & Veronique Schutjens, 2011. "Understanding regional variation in entrepreneurial activity and entrepreneurial attitude in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 711-742, December.

    More about this item

    Keywords

    Startup process; stage prevalence rates; cross country comparison;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

    Statistics

    Access and download statistics

    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:udc:esteco:v:35:y:2008:i:2:p:133-152. 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: Verónica Kunze (email available below). General contact details of provider: https://edirc.repec.org/data/deuclcl.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.