SBE Lect 5_ Part 1: ch7 Global entrepreneurship Monitor (NL vs. Innovation…
SBE Lect 5_ Part 1: ch7 Global entrepreneurship Monitor
NL vs. Innovation driven countries
“Intentions” = 14.77% is expecting to start a new business in the next three years
“Nascents” = 5,30% says to be active as nascent entrepreneur in past year
Nascents ~62% of TEA
◦ Overall, NL scores quite good on transition from nascent to young business-owner
“New businesses” = 3,40% owns & manages a business with income < 3.5 years ◦ Remember, this is the stock of 3.5 years!
Global Entrepreneurship Monitor (NL)
Nascents ~55% of TEA!
“Intentions” = 10.81% is expecting to start a new business in the next three years
“New businesses” = 4.53% owns & manages a business with income < 3.5 years (remember this is the stock of 3.5 years!)
“Nascents” = 5.15% says to be active as nascent entrepreneur in past year
3. How many individuals are actively
Using GEM to grasp the seriousness of an intention
How serious should we take intentions?
Distinguishing attitudes from actions in GEM (Hand-out)
New businesses are central to economic development (Lecture 4)
◦ People set up business, so measuring nascent entrepreneurship proxies
entrepreneurial behaviour more direct than counting new businesses
Nascent entrepreneurship: 3 main questions (in other order than book "reverse order")
How do individuals go about creating a business?
How many individuals are actively involved?
What actually triggers them to go about starting a business?
The business start-up process
see slide 3/26 the GEM entrepreneurial process
Not a new business-owner: Owner-managers of new businesses own and manage, alone or with others, an operating business that has paid them salaries or profits during more than three months, but not more than 42 months
Definition Global Entrepreneurship Monitor:
Nascent entrepreneurs are currently trying to start a new business, which they expect to own at least partly and for which salaries, wages or any other payments have not been paid for more than three months
Nascent entrepreneurs (“in general”): ‘...individuals involved in an attempt to start up a business’
Key learning objectives
Understand the importance of nascent entrepreneurship
Be able to identify and describe characteristics of an entrepreneurial ecosystem (entrepreneurial framework conditions)
Be able to explain how belonging to a particular culture or social group may influence the choice of entrepreneurship