Please enable JavaScript.
Coggle requires JavaScript to display documents.
SBE Lect 4_ Part 3: Ch6 defining and measuring start ups (Global…
SBE Lect 4_ Part 3: Ch6 defining and measuring start ups
Measuring the start-up rate
To work out the start up rate, one needs to establish the numerator (measure of new businesses) and then divide this by the
denominator
(population)
Challenges
Purity:
Real birth vs. change of ownership / change in structure of the business
Coverage:
Influence of registration thresholds / geographical coverage
Timing/periodicity:
When measuring start-up? (Many have short life)
Denominator challenges: Businesses or individuals
Global Entrepreneurship Monitor
Measuring differences in the level of entrepreneurial activity (new business creation) across economies
Currently representing ~70% of the world’s population and ~90% of the worlds total GDP
100 countries have participated at least once
From 10 participating countries in 1999 to >60 now
Netherlands joined GEM in 2001
Initiative by Babson College and London Business School
Adult Population Survey (APS)
and National Experts Survey (NES) see video link slide 16/31
The GEM entrepreneurial process
Total early-stage Entrepreneurial Activity (TEA)
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
TEA = Nascent entrepreneurship + New business owners
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 17/31
Total early-stage Entrepreneurial Activity (TEA)
See slide 18/31 Ordering according to 1)stage of economic development and 2) TEA rate
How serious are those in TEA?
TEA extremely high in countries with relative low income
:
1. Agricultural sector
2. Opportunity versus necessity TEA
Are you involved in this start-up to take advantage of a business opportunity or because you
have no better choices for work? (Still, self-report!)
Motivational index: Opportunity TEA / Necessity TEA
See slides 19/31 ( "other motivation" is a mix)
Opportunity-driven motivation
Necessity-driven motivation