IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v43y2022i5p1566-1578.html
   My bibliography  Save this article

Determinants of early‐stage entrepreneurship in the Kingdom of Saudi Arabia: Evidence from the Global Entrepreneurship Monitor Database

Author

Listed:
  • Suheela Shabir
  • Jabir Ali

Abstract

This study aims at identifying the determinants of early‐stage entrepreneurial activities (TEA) in the Kingdom of Saudi Arabia based on the Global Entrepreneurship Monitor (GEM) survey. Out of 4,048 adult populations surveyed in Saudi Arabia, about 11.4% have reported early‐stage entrepreneurial activity. Analysis indicates a significant association between demographic characteristics and early‐stage entrepreneurship. Further, the regression estimates indicate that all three components of the theory of planned behavior, i.e., attitude towards entrepreneurship (ATE), Perceived Subjective Norms (PSN), and Perceived Behavioral Control (PBC), have a positive and significant impact on the early‐stage entrepreneurial activities among the adult population. The analysis indicates the individuals choosing entrepreneurship as a career choice and perceive greater economic opportunities with social orientation are induced to start an enterprise at an early stage. Moreover, self‐efficacy is a strong factor inducing early‐stage entrepreneurs, while risk perception towards entrepreneurship hinders entrepreneurial growth. The study provides insights for developing schemes and policies towards strengthening the entrepreneurial ecosystem in Saudi Arabia and provides further research direction on entrepreneurial initiatives.

Suggested Citation

  • Suheela Shabir & Jabir Ali, 2022. "Determinants of early‐stage entrepreneurship in the Kingdom of Saudi Arabia: Evidence from the Global Entrepreneurship Monitor Database," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1566-1578, July.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:5:p:1566-1578
    DOI: 10.1002/mde.3474
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3474
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3474?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. Beynon, Malcolm J. & Jones, Paul & Pickernell, David, 2016. "Country-based comparison analysis using fsQCA investigating entrepreneurial attitudes and activity," Journal of Business Research, Elsevier, vol. 69(4), pages 1271-1276.
    2. Jorge, Velilla, 2017. "Feminization of entrepreneurship in developing countries? Evidence from GEM data," MPRA Paper 79997, University Library of Munich, Germany.
    3. André Stel & Martin Carree & Roy Thurik, 2005. "The Effect of Entrepreneurial Activity on National Economic Growth," Small Business Economics, Springer, vol. 24(3), pages 311-321, February.
    4. Teemu Kautonen & Marco van Gelderen & Erno T. Tornikoski, 2013. "Predicting entrepreneurial behaviour: a test of the theory of planned behaviour," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 697-707, February.
    5. Norris F. Krueger Jr. & Deborah V. Brazeal, 1994. "Entrepreneurial Potential and Potential Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 18(3), pages 91-104, April.
    6. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    7. Susana C. Santos & António Caetano & Paola Spagnoli & Sílvia Fernandes Costa & Xaver Neumeyer, 2017. "Predictors of entrepreneurial activity before and during the European economic crisis," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1263-1288, December.
    8. Albassam, Bassam A., 2015. "Economic diversification in Saudi Arabia: Myth or reality?," Resources Policy, Elsevier, vol. 44(C), pages 112-117.
    9. Nowiński, Witold & Haddoud, Mohamed Yacine, 2019. "The role of inspiring role models in enhancing entrepreneurial intention," Journal of Business Research, Elsevier, vol. 96(C), pages 183-193.
    10. 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.
    11. Stein Kristiansen & Nurul Indarti, 2004. "Entrepreneurial Intention Among Indonesian And Norwegian Students," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 55-78.
    12. Zaremohzzabieh, Zeinab & Ahrari, Seyedali & Krauss, Steven Eric & Samah, Asnarulkhadi Abu & Meng, Lee Kwan & Ariffin, Zaifunizam, 2019. "Predicting social entrepreneurial intention: A meta-analytic path analysis based on the theory of planned behavior," Journal of Business Research, Elsevier, vol. 96(C), pages 264-276.
    13. Joep P. Cornelissen & Jean S. Clarke, 2010. "Imagining and rationalizing opportunities : Inductive reasoning and the creation and justification of new ventures," Post-Print hal-02276730, HAL.
    14. Ana Iolanda Vodă & Nelu Florea, 2019. "Impact of Personality Traits and Entrepreneurship Education on Entrepreneurial Intentions of Business and Engineering Students," Sustainability, MDPI, vol. 11(4), pages 1-34, February.
    15. Tugrul Daim & Marina Dabic & Elvan Bayraktaroglu, 2016. "Students’ entrepreneurial behavior: international and gender differences," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-22, December.
    16. Boris Urban & Fenosoa Ratsimanetrimanana, 2019. "Access to finance and entrepreneurial intention," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 13(4), pages 455-471, June.
    17. Faudot, Adrien, 2019. "Saudi Arabia and the rentier regime trap: A critical assessment of the plan Vision 2030," Resources Policy, Elsevier, vol. 62(C), pages 94-101.
    18. Mohd Yasir Arafat & Imran Saleem, 2017. "Examining start-up Intention of Indians through cognitive approach: a study using GEM data," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-11, December.
    19. Ivano Dileo & Thaís García Pereiro, 2019. "Assessing the impact of individual and context factors on the entrepreneurial process. A cross-country multilevel approach," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1393-1441, December.
    20. KruegerJR, Norris F. & Reilly, Michael D. & Carsrud, Alan L., 2000. "Competing models of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 411-432.
    21. Joep P. Cornelissen & Jean S. Clarke, 2010. "Imagining and rationalizing opportunities : Inductive reasoning and the creation and justification of new ventures," Post-Print hal-02312342, HAL.
    22. Souitaris, Vangelis & Zerbinati, Stefania & Al-Laham, Andreas, 2007. "Do entrepreneurship programmes raise entrepreneurial intention of science and engineering students? The effect of learning, inspiration and resources," Journal of Business Venturing, Elsevier, vol. 22(4), pages 566-591, July.
    23. Rasem N. Kayed & M. Kabir Hassan, 2010. "Islamic Entrepreneurship: A Case Study Of Saudi Arabia," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 379-413.
    24. Arminda Paço & João Ferreira & Mário Raposo & Ricardo Rodrigues & Anabela Dinis, 2011. "Behaviours and entrepreneurial intention: Empirical findings about secondary students," Journal of International Entrepreneurship, Springer, vol. 9(1), pages 20-38, March.
    25. Kuen-Hung Tsai & Hui-Chen Chang & Chen-Yi Peng, 2016. "Refining the linkage between perceived capability and entrepreneurial intention: roles of perceived opportunity, fear of failure, and gender," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1127-1145, December.
    26. Bahadur Ali Soomro & Ghulam Rasool Lakhan & Naimatullah Shah, 2021. "COVID‐19 impediments and business start‐ups in Pakistan: Evidence from the second wave of the pandemic," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1909-1918, October.
    27. Joyce Koe Hwee Nga & Gomathi Shamuganathan, 2010. "The Influence of Personality Traits and Demographic Factors on Social Entrepreneurship Start Up Intentions," Journal of Business Ethics, Springer, vol. 95(2), pages 259-282, August.
    28. Zakia Jabeen & Jabir Ali & Nadia Yusuf, 2021. "Difference in business obstacles faced by firms across sizes: evidence from enterprise survey data of India," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 71-81, December.
    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. Chun Lin & Gengrui Cui & Yingjie Sun, 2023. "Labor allocation: How environmental regulation promotes industrial structure," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 1995-2003, June.

    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. 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. Aparicio, Sebastian & Urbano, David & Stenholm, Pekka, 2021. "Attracting the entrepreneurial potential: A multilevel institutional approach," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    3. Christopher Schlaegel & Michael Koenig, 2014. "Determinants of Entrepreneurial Intent: A Meta–Analytic Test and Integration of Competing Models," Entrepreneurship Theory and Practice, , vol. 38(2), pages 291-332, March.
    4. Mojtaba Shahin & Olivia Ilic & Christabel Gonsalvez & Jon Whittle, 2021. "The impact of a STEM-based entrepreneurship program on the entrepreneurial intention of secondary school female students," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1867-1898, December.
    5. Elina Kallas, 2019. "Environment-Readiness Entrepreneurship Intention Model: The Case of Estonians and the Russian-Speaking Minority in Estonia," SAGE Open, , vol. 9(1), pages 21582440188, January.
    6. Calza, Francesco & Cannavale, Chiara & Zohoorian Nadali, Iman, 2020. "How do cultural values influence entrepreneurial behavior of nations? A behavioral reasoning approach," International Business Review, Elsevier, vol. 29(5).
    7. Carlos Bazan & Hannah Gaultois & Arifusalam Shaikh & Katie Gillespie & Sean Frederick & Ali Amjad & Simon Yap & Chantel Finn & James Rayner & Nafisa Belal, 2020. "A systematic literature review of the influence of the university’s environment and support system on the precursors of social entrepreneurial intention of students," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-28, December.
    8. Fayolle, Alain & Liñán, Francisco, 2014. "The future of research on entrepreneurial intentions," Journal of Business Research, Elsevier, vol. 67(5), pages 663-666.
    9. Anca-Otilia Dodescu & Elena-Aurelia Botezat & Alexandru Constăngioară & Ioana-Crina Pop-Cohuţ, 2021. "A Partial Least-Square Mediation Analysis of the Contribution of Cross-Campus Entrepreneurship Education to Students’ Entrepreneurial Intentions," Sustainability, MDPI, vol. 13(16), pages 1-26, August.
    10. Lizette Huezo-Ponce & Virginia Fernández-Pérez & Lázaro Rodríguez-Ariza, 2021. "Emotional competencies and entrepreneurship: modeling universities," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1497-1519, September.
    11. Douglas, Evan J. & Shepherd, Dean A. & Prentice, Catherine, 2020. "Using fuzzy-set qualitative comparative analysis for a finer-grained understanding of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 35(1).
    12. repec:hrs:journl::y:2012:v:4:i:3:p:155-172 is not listed on IDEAS
    13. Sajjad Nawaz Khan & Muhammad Mubushar & Ikram Ullah Khan & Hafiz Mudassir Rehman & Safeer Ullah Khan, 2021. "The influence of personality traits on sustainability-oriented entrepreneurial intentions: the moderating role of servant leadership," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13707-13730, September.
    14. Chen Fang & Liwen Chen, 2019. "Exploring the Entrepreneurial Intentions of Science and Engineering Students in China: A Q Methodology Study," Sustainability, MDPI, vol. 11(10), pages 1-16, May.
    15. Aleksey I. Shinkevich & Alsu A. Lubnina & Alexey G. Koryakov & Vladimir G. Mikhailov & Ekaterina L. Vodolazhskaya, 2016. "Economic Aspects of Risk Management of Stakeholders Activities," International Review of Management and Marketing, Econjournals, vol. 6(2), pages 328-332.
    16. Charalampos A. Botsaris & Vasiliki Vamvaka, 2012. "Models Of The Determinants Of Entrepreneurial Behaviour: A Literature Review," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 155-172, December.
    17. Francisco Díez-Martín & Alicia Blanco-González & Giorgia Miotto, 2022. "The impact of state legitimacy on entrepreneurial activity," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 935-955, June.
    18. Fellipe Silva Martins & Eduardo Biagi Almeida Santos & Amélia Silveira, 2019. "Entrepreneurial Intention: Categorization, Classification of Constructs and Proposition of a Model," Brazilian Business Review, Fucape Business School, vol. 16(1), pages 46-62, January.
    19. Mohd Yasir Arafat & Imran Saleem & Amit Kumar Dwivedi & Adil Khan, 2020. "Determinants of agricultural entrepreneurship: a GEM data based study," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 345-370, March.
    20. Meoli, Azzurra & Fini, Riccardo & Sobrero, Maurizio & Wiklund, Johan, 2020. "How entrepreneurial intentions influence entrepreneurial career choices: The moderating influence of social context," Journal of Business Venturing, Elsevier, vol. 35(3).
    21. Tarek Ben Ali, 2017. "University and Entrepreneurship: An Empirical Investigation in the Tunisian Context," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 76-84.

    More about this item

    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:wly:mgtdec:v:43:y:2022:i:5:p:1566-1578. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.