SBE Lect 5_ Part 1: ch7 Global entrepreneurship Monitor (The business…
SBE Lect 5_ Part 1: ch7 Global entrepreneurship Monitor
Key learning objectives
Be able to explain how belonging to a particular culture or social group may influence the choice of entrepreneurship
Be able to identify and describe characteristics of an entrepreneurial ecosystem (entrepreneurial framework conditions)
Understand the importance of nascent entrepreneurship
The business start-up process
Nascent entrepreneurs (“in general”): ‘...individuals involved in an attempt to start up a business’
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
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
see slide 3/26 the GEM entrepreneurial process
Nascent entrepreneurship: 3 main questions (in other order than book "reverse order")
What actually triggers them to go about starting a business?
How many individuals are actively involved?
How do individuals go about creating a business?
3. How many individuals are actively
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
Using GEM to grasp the seriousness of an intention
Distinguishing attitudes from actions in GEM (Hand-out)
How serious should we take intentions?
Global Entrepreneurship Monitor (NL)
“Nascents” = 5.15% says to be active as nascent entrepreneur in past year
“New businesses” = 4.53% owns & manages a business with income < 3.5 years (remember this is the stock of 3.5 years!)
“Intentions” = 10.81% is expecting to start a new business in the next three years
Nascents ~55% of TEA!
NL vs. Innovation driven countries
“New businesses” = 3,40% owns & manages a business with income < 3.5 years ◦ Remember, this is the stock of 3.5 years!
Nascents ~62% of TEA
◦ Overall, NL scores quite good on transition from nascent to young business-owner
“Nascents” = 5,30% says to be active as nascent entrepreneur in past year
“Intentions” = 14.77% is expecting to start a new business in the next three years