GEM 2006 Global Results Summary V2

8/14/2019 GEM 2006 Global Results Summary V2

1/32

GEM TEAMS AND SPONSORS: 2006

GLOBAL ENTREPRENEURSHIP MONITOR

GEM 2006 Summary Results

Niels Bosma and Rebecca Harding


2/32

2GLOBAL ENTREPRENEURSHIP MONITOR2006 Results

Global EntrEprEnEurshipGEM 2006 SUMMARy RESULTS

Niels BosmaRebecca Harding

FOUNDING AND SPONSORING INSTITUTIONS

Babson College, Babson Park. MA. USALondon Business School. London. UK

Although GEM data were used in the preparation of this report, theirinterpretation and use are the sole responsibilit of the authors.

2007 b Niels Bosma, Rebecca Harding, Babson College and London Business School


3/32

.0 Introduction 5

2.0 Entrepreneurship and Economic Development 0

3.0 Characteristics of Entrepreneurial Activit 5

4.0 Teams, Institutions, Sponsors 24

ContEnts

3CONTENTS


4/32


5/32

INTRODUCTION

The Global Entrepreneurship Monitor (GEM)cross-national assessment of entrepreneurialactivit is now in its eighth ccle. Started in999, with ten participating countries, theproject has expanded to include 42 countriesin 2006.

GEM is a major research project aimed atdescribing and analsing entrepreneurialprocesses within a wide range of countries.In particular, GEM focuses on three mainobjectives:

To measure differences in the level ofentrepreneurial activit between countries.

To uncover factors determining the levelsof entrepreneurial activit.

To identif policies that ma enhance thelevel of entrepreneurial activit.

To this end, the project has from the start,been designed as a multinational researchprogramme providing annual assessmentsof the entrepreneurial sector for a range of

countries.

GEMs contribution to the knowledge andunderstanding of the entrepreneurial process

is unique since, to date, no other data setexists that can provide consistent cross-countr information and measurements ofentrepreneurial activit in a global context.

Information about GEM and all GEMdocuments can be found at www.gemconsortium.org.

1 GEMs research methodology andprocedures are described in Reynolds,P.D., N. Bosma, E. Au tio, S. Hunt,N. DeBono, I. Servais, P. Lopez-Garcia and N. Chin (2005), GlobalEntrepreneurship Monitor: DataCollection Design and Implementation19982003, Small Business Economi24: 205231

5INTRODUCTION


6/32


EARLy-STAGE ENTREPRENEURIALACTIVITy AND ESTABLISHEDBUSINESS OWNERSHIPGEM estimates the level of involvementin earl-stage entrepreneurial activit bcombining the prevalence rate of nascententrepreneurs (people in the process ofstarting a new business) and new businessowners.

Nascent entrepreneurs are thoseindividuals, between the ages of 8 and64 ears, who have taken some action

towards creating a new business inthe past ear. In order to qualif in thiscategor, these individuals must alsoexpect to own a share of the business theare starting and the business must nothave paid an wages or salaries for morethan three months.

New business owners are individuals whoare active as owner-managers of a newbusiness that has paid wages or salariesfor more than three months, but less than

42 months.In addition to those individuals who arecurrentl involved in the earl-stages of abusiness, there are also man individualswho have owned and managed a businessfor a longer time. These individuals areincluded in GEMs estimates of the number ofestablished business owners. Specificall, thepercent of individuals in a population whoowns and manages a business that has paidwages or salaries for more than 42 months.

These two measurements are both verimportant, as the conve differentinformation about the entrepreneuriallandscape of a countr. Earl-stageentrepreneurship indicates the dnamicentrepreneurial propensit of a countr. Inother words, it shows the percentage of thepopulation willing and able to undertake anentrepreneurial venture. Established business

ownership, instead, indicates the percentagof the population activel involved in runnin

businesses that proved to be sustainable.The estimates of the measurements discussehere, are presented in Table for all 42countries involved in GEM 2006.


7/32

NAS

CENT

ENTREPRENEURIAL

ACT

IVITy

NEW

BUSINESS

OW

NERS

EARLy-STAGE

ENTREPRENEURIAL

ACT

IVITy(TEA)*

ESTA

BLISHED

BUSINESS

OW

NERS

NUM

BEROF

RESP

ONDENTS

8-6

4yEARS

Argentina 6.4% 4.% 0.2% 7.0% ,755

Australia 7.3% 5.7% 2.0% 9.% ,97

Belgium .8% .% 2.7% 2.% 2,00

Brazil 3.5% 8.6% .7% 2.% 2,000

Canada 4.% 3.2% 7.% 5.% ,697

Chile 5.7% 3.9% 9.2% 6.8% 2,007

China 6.7% 0.5% 6.2% 9.0% 2,399

Colombia 0.9% 2.6% 22.5% 0.4% 2,000

Croatia 6.4% 2.5% 8.6% 4.% ,549

Czech Republic 6.4% 2.0% 7.9% 5.4% ,628

Denmark 2.9% 2.8% 5.3% 5.3% 0,000

Finland 2.9% 2.4% 5.0% 8.2% 2,005

France 3.8% 0.7% 4.4% .3% ,59

German 2.9% .7% 4.2% 3.0% 4,049

Greece 5.7% 2.3% 7.9% 8.2% 2,000

Hungar 3.2% 3.0% 6.0% 6.7% 2,500

Iceland 8.% 3.8% .3% 7.4% 2,00

India 5.4% 5.3% 0.4% 5.6% ,96

Indonesia 9.6% .5% 9.3% 7.6% ,998

Ireland 4.5% 2.9% 7.4% 7.8% ,96

Ital 2.2% .4% 3.5% 3.0% ,626

Jamaica .6% 9.2% 20.3% 0.3% 3,554

Japan .6% .4% 2.9% 4.8% ,923

Latvia 4.0% 2.7% 6.6% 5.7% ,958

Malasia 4.9% 6.2% .% 7.3% 2,005

Mexico 4.% .2% 5.3% 2.3% ,839

Netherlands 3.6% .9% 5.4% 6.6% 2,685

Norwa 5.3% 4.3% 9.% 6.0% ,503

Peru 30.0% 5.% 40.2% 2.4% ,845

Philippines 5.0% 5.6% 20.4% 9.7% 2,000

Russia 3.5% .7% 4.9% .2% ,894

Singapore 2.7% 2.5% 4.9% 3.4% 3,883

Slovenia 2.9% .8% 4.6% 4.4% 3,008

South Africa 3.6% .7% 5.3% .7% 2,684

Spain 3.0% 4.4% 7.3% 5.5% 28,306

Sweden 2.2% .4% 3.5% 5.0% ,747

Thailand 4.% .5% 5.2% 7.4% 2,000

Turke 2.2% 4.0% 6.% .5% 2,47

United Arab Emirates .7% 2.2% 3.7% .4% ,903

United Kingdom 3.2% 2.8% 5.8% 5.4% 34,896

United States 7.5% 3.3% 0.0% 5.4% 2,325

Urugua 8.4% 4.6% 2.6% 6.9% ,68

Table 1 - Prevalence rates ofentrepreneurial activit across

countries in 2006 (in percentagof adult population 8-64)

* Earl stage entrepreneurial activitincludes nascent entrepreneurialactivit and new business owners.Some respondents are involved in bothnascent entrepreneurial activit and nebusiness ownership, hence the result thearl-stage entrepreneurial activit ratare generall lower than the sum of bocomponents.

7INTRODUCTION


8/32



9/32

9GEM TEAMS AND SPONSORS: 2006

2.0ENTREPRENEURSHIP AND

ECONOMIC DEVELOPMENT


10/32


ENTREPRENEURSHIP AND PERCAPITA GDP LEVELS

A sstematic relationship exists between acountrs level of economic development andits level and tpe of entrepreneurial activit.Countries with similar per capita GDP tendto exhibit similar levels of entrepreneurialactivit, while significant differences exist acrosscountries with different per capita GDP levels.

At low levels of per capita GDP, industrialstructure is characterised b the prevalenceof man ver small enterprises. As per

capita income increases, industrialisationand economies of scale allow larger andestablished firms to satisf the increasingdemand of growing markets and to increasetheir relative role in the econom. Thisincrease in the role of large firms is usuallaccompanied b a reduction in the numberof new enterprises, since a growing numberof people find stable emploment in largeindustrial plants. As further increases inincome are experienced, however, therole plaed b the entrepreneurial sectorincreases again, as more individualshave the resources to go into business forthemselves in an economic environment thatallows the exploitation of opportunities. Inhigh income economies, through a growingservices sector, enhanced differentiationof consumer wants and acceleratedtechnolog development, entrepreneurialbusinesses enjo a newl found competitiveadvantage. Of course, the rate of aggregateentrepreneurial activit also depends on

the demographic, cultural and institutionalcharacteristics of each countr.

Regardless of the level of development, andfirm size, entrepreneurial behaviour remainsa crucial engine of innovation and growth forthe econom and for individual companiessince, b definition, it implies attention andwillingness to take advantage of unexploitedopportunities.

Consistentl with the previous analsis, Figu shows that:

Earl-stage entrepreneurial activit isgenerall higher in those countries withlower levels of GDP.

Earl-stage entrepreneurial activit isrelativel low in high income countries,especiall for the core countries of theEuropean Union and Japan.

Countries with highest levels of GDP shoincreasing earl-stage entrepreneurialactivit suggesting a new increase in

opportunit related entrepreneurship.Figure illustrates the association betweenentrepreneurship and the level of economicdevelopment outlined earlier. However, thiscross-sectional approach does not implan specific causal relationships betweenentrepreneurial activit and economicdevelopment.

Figure 2 shows earl-stage entrepreneurialactivit across GEM countries in 2006.

There are wide variations in prevalencerates, although over the ears, GEM datahave shown these variations across countrieto be relativel stable.

Earl-stage entrepreneurial activit ishighest in Peru at 40.2%, and lowest inBelgium at 2.7%.

The vertical bars indicate the confidenceintervals (95%) of GEM estimates.Countries whose confidence intervalsoverlap do not differ from one another ina statisticall significant manner.


11/32

0%

5%

10%

15%

20%

25%

0 10,000 20,000 30,000 40,000 50,000

Percentageofpopulationbetween18-64years

involvedinearly-stageentrepreneurialactivity

GDP per Capita 2006, in Power Purchasing Parities (PPP)

Early-stage Entrepreurial Activity (TEA rate) 2006TEA rate United Arab EmiratesFitted 3rd order polynomial - Arab Emirates and Peru excluded

Note: Peru not shown in this graph Estimated parameters fitted trendline:y = -4E-15x3 + 5E-10x2 - 2E-05x + 0.2466

R2 = 0.58

JA PHCO

ID

CN

TH

UY

MY

AR

HR

BR

IN

CL

TRMX

RU

SA

LV CZ

HU

GR

SI

AU

CA

IS

US

NO

IE

DK

BEJP

SEDE

FINL

UK

ES

SGFR

IT AE

Fig. 1 - Earl-StageEntrepreneurial Activit Rates

and GDP per Capita, 2006Note: GDP levels were taken from theIMFs World Economic Outlook Databa(October 2006)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Percen

tageo

fpopula

tion

be

tween

18-64

years

invo

lve

dinearly-s

tageen

trepreneur

ialac

tivity

Be

lgium

Japan

Swe

denItaly

U.

Ara

bEm

ira

tes

Germany

France

Slovenia

Singapore

Russia

Finland

Mexico

Sout

hAfrica

Denmark

Ne

therlandsUK

Hungary

Turkey

Latvia

Cana

da

Spain

Ire

land

Czech

Repub

lic

Greece

Croatia

Norway

ChileU

SA

Argent

inaIndia

Ma

lays

ia

Ice

land

Brazil

Aus

tralia

Uraguay

Tha

iland

China

Indonesia

Jama

ica

Philipp

ines

Co

lom

biaPeru

Fig. 2 - Earl-StageEntrepreneurial Activit b

Countr, 2006

ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT


12/32


Fig. 3 - Established BusinessOwnership b Countr, 2006

Percentageofpopulationbetween18-64year

s

involvedinestablishedbusinessownership

0%

5%

10%

15%

20%

25%

Russia

France

UnitedArabEmirates

SouthAfrica

Belgium

MexicoItaly

Germany

Singapore

Croatia

Slovenia

Japan

Sweden

Canada

DenmarkUK

CzechRepublic

USA

Spain

India

Latvia

Norway

Netherlands

Hungary

Chile

Uraguay

Argentina

Malaysia

Iceland

Ireland

Finland

Greece

China

Australia

Jamaica

Colombia

Turkey

Brazil

Peru

Thailand

Indonesia

Figure 3 shows the prevalence rates ofestablished business owners across GEMcountries in 2006.

Countries with higher earl-stageentrepreneurial activit also tend to havehigher prevalence rates of establishedbusiness ownership. For example, thePhilippines have the highest establishedbusiness ownership at 9.7% and thirdhighest earl-stage entrepreneurialactivit at 20.4%. Belgium, on the otherhand, has the lowest rate of earl-stageentrepreneurial activit and the fifth lowestrate of established business ownership.

There are some exceptions to this generalpattern. For instance, the United Stateshave an established business rate, whichis comparable to those of man Europeancountries and Japan, whereas figure 2showed that earl-stage entrepreneurialactivit is higher in the United States.


13/32

2 These countries have per capita (PPPGDP lower than USD $20,000. In 200their average per capita (PPP) GDP isUSD $10,367 and their average realGDP growth (2005) equals 5.4%.

3 These countries have per capita (PPPGDP higher than USD $20,000. In2006, their average per capita (PPP)GDP is USD $34,139 and their averagreal GDP growth (2005) equals 3.5%.

HIGH INCOME VERSUS MIDDLEINCOME COUNTRIES

Given the established association betweenentrepreneurial activit and per capita GDPlevels, countries that participated in theGEM stud in 2006 can be divided into twogroups, based on their per capita GDP.

Middle Income Countries2

Argentina, Brazil, Chile, China, Colombia,Croatia, Czech Republic, Hungar, India,Indonesia, Jamaica, Latvia, Malasia,Mexico, Peru, Philippines, Thailand, Turke,

Russia, South Africa, Urugua.

High Income Countries3

Australia, Belgium, Canada, Denmark,Finland, France, German, Greece, Iceland,Ireland, Ital, Japan, Netherlands, Norwa,Singapore, Slovenia, Spain, Sweden, UnitedArab Emirates, United Kingdom, UnitedStates.

As suggested b figures 2 and 3, middleincome countries lead in both earl-stage

entrepreneurial activit and the rate ofestablished business ownership. Thedifferences in prevalence rates betweenthe two countr groups are statisticallsignificant at above 99% confidence level.

3ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT


14/32


3.0CHARACTERISTICS OF ENTREPRENEURIAL ACTIVITy


15/32

MOTIVATION

The GEM surve allows for differentiationaccording to the reasons that motivateentrepreneurial behaviour. In the GEMframework, individuals start a businessfor two main reasons:

The want to exploit a perceivedbusiness opportunit (opportunitentrepreneurs).

The are pushed into entrepreneurshipbecause all other options for workare either absent or unsatisfactor

(necessit entrepreneurs).

The vast majorit of earl-stageentrepreneurs across the world claim thatthe are attempting to take advantageof a business opportunit. yet, figure 4shows that there is also variation acrosscountries in the balance of start-upmotives. Overall, the results show thatnecessit entrepreneurship is relativelmore common in middle income countriesthan in high income countries.

In the group of middle income countries,the lowest percentages of opportunit-

driven earl-stage entrepreneurialactivit are found in Croatia, Brazil andthe Philippines at around 50%. At theother end, about 90% of Malasias andIndonesias earl-stage entrepreneursreport to be driven b opportunit.

There is also wide variation in the groupof high income countries. The highestpercentages of opportunit-driven earl-stage entrepreneurial activit are found inDenmark, Norwa and the Netherlands

(all higher than 90%). German, Franceand Greece have much lower sharesof opportunit-driven earl-stageentrepreneurs at about 60%.

Figure. 4 - Opportunitto Necessit Earl-StageEntrepreneurship

Croatia

Brazil

Philippines

China

Turkey

Colombia

Uruguay

Jamaica

India

Mexico

SouthAfrica

Thailand

CzechRepublic

Russia

Chile

Argentina

Peru

Hungary

Latvia

Indonesia

Malaysia

Germany

France

Greece

Finland

Italy

ArabEmirates

UK

USA

Spain

Canada

Ireland

Japan

Singapore

Belgium

Iceland

Sweden

Slovenia

Australia

Netherlands

Norway

Denmark

%respondentsinvolvedin

e

arly-stageentrepreneurialactivity

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

High income countriesMiddle income countries

Opportunity motive Necessity motives Other

5CHARACTERISTICS OF ENTREPRENEURIAL ACTIVITy


16/32


INNOVATIVENESS

B increasing the competitive offering ofnew products and services, entrepreneurscontribute towards greater market efficienc.In addition, man entrepreneurs areimportant agents of innovation. To measureinnovativeness, GEM asked entrepreneursand business owners how the evaluatethe newness of their product or service, thecompetition the face, and the novelt oftheir product or service technolog. Becausethe represent individual entrepreneursperceptions of their own situation, suchassessments are inevitabl context-specific,and the are likel to var betweencountries.

Figure 5 compares the newness of theproducts and services among earl-stage

entrepreneurs and established businessowners in the two countr groups. Thepattern is ver similar for both groups: themajorit of businesses are offering productsor services that are not new to customers,and onl a small fraction claim that whatthe offer is new to all customers.

In middle income countries, earl-stageentrepreneurs are somewhat more likel(9%) to sa that their product is new toall customers than those in high income

countries (5%).

52% of earl-stage entrepreneurs inmiddle income countries and 56% ofearl-stage entrepreneurs in high incomecountries did not consider their product tbe new to their customers.

Figure. 5 - Newness ofProducts b Countr Group,2006

%

respondentsinvolvedin

establishedbusinessownership

Product new to how many customers?

0

10

20

30

40

50

60

70

80

All Some None

Middle income countries High income countries

%r

espondentsinvolve

d

in

early-stage

entrepreneuria

lactivity

Product new to how many customers?

0

10

20

30

40

5060

70

80

All Some None


Earl-stage entrepreneurialactivit

Established business ownership


17/32

Similarl, established business owners inmiddle income countries were more likel

to sa that their product was new to allcustomers (6%) than established businessowners in high income countries (9%).

In high income countries, establishedbusiness owners are more likel than theircounterparts in middle income countries toview their product as new to none of theircustomers (7% compared to 62%).

The proportion of established businessowners who believe to have an innovative

product is significantl lower than therelated percentage of earl-stageentrepreneurs.

Figure 6 shows that most entrepreneurs alsosa that the expect to face man competitorsin their markets. Established business ownersin the two countr groups show no significantdifference in their evaluation of the degree ofcompetition the face.

Regardless of countr group, about halfof earl-stage entrepreneurs expect man

competitors (5% in high income countriesand 57% in middle income countries).

Onl % of earl-stage entrepreneurs inhigh income countries and 9% in middleincome countries expected to have nocompetitors.

In the middle income countr cluster,established business owners are morelikel to sa that the have mancompetitors compared to their high income

counterparts (70% compared to 63%).Onl 6% of established business ownersin both middle income countries and highincome countries claim that there areno other businesses offering the sameproduct.

A third important indicator of theinnovativeness of a business comprises thetechnologies and productive processes it

uses. Figure 7 shows significant differencesin the use of new technologies between high

and middle income countr groups.

In both countr groups, the percentage ofestablished business owners claiming thattheir technolog is not new is significantlhigher than the comparable percentage ofearl-stage entrepreneurs.

Earl-stage entrepreneurs in middleincome countries are substantiall morelikel to use new technologies than theircounterparts in high income countries.

Depending on levels of development, atechnolog considered new in a middleincome countr ma not be considered asnew in a high income countr.

In middle income countries, 6% ofearl-stage entrepreneurs claimed thatthe used the ver latest technolog (notavailable a ear ago) and 22% claimedthe used new technolog (available for-5 ears). In high income countries, thesefigures are 7% and 8% respectivel.

SECTORAL DISTRIBUTIONIn order to analse the sectors in whichpeople attempt to start businesses andcompare their distribution with those ofestablished business, GEM codes activitaccording to the International Standardof Industrial Classification of All EconomicActivities (ISIC). Figure 8 shows that thelargest share of earl-stage entrepreneursand established business owners are active

in consumer oriented activities (where theprimar customer is a phsical person e.g.retail, restaurants and bars, lodging, health,education, social services, recreation),followed b transformation (construction,manufacturing, transportation, and wholesaledistribution) business services (where theprimar customer is another business), andextractive activities (extraction of productsfrom the natural environment).



18/32


Figure. 6 - Expected Number ofCompetitors b Countr Group,

2006

%r

espondentsinvolved

in

early-stage

entrepreneurialactivity

How many businesses offer the same product

0

10

20

30

40

50

60

70

80

Many Few None


%



How many businesses offer the same product

0

10

20

30

40

50

60

70

80

Many Few None


Figure. 7 - Newness of

Technolog b Countr IncomeGrouping, 2006

%r

espondentsinvolved

in

early-stage

entrepreneurialactivity

How new are the used technologies or procedures

0

10

20

30

40

50

60

7080

Very latest technology New technology (1 to 5 years) No new technology


%



How new are the used technologies or procedures

0

10

20

30

40

50

60

70

80

Very latest technology New technology (1 to 5 years) No new technology







19/32

Earl-stage entrepreneurs in high incomecountries are much more likel to be

found in the business services sector thanthose in middle income countries (25%zd to 9%). The pattern for establishedbusiness ownership is ver similar; earl-stage entrepreneurs in middle incomecountries are more likel to sell theirproducts directl to the consumer. In otherwords, figure 8 confirms that there is morebusiness-to-business trade in high incomecountries.

For both countr groups the share ofearl-stage entrepreneurs who are active

in extractive sectors is significantl lowerthan the share of established businessowners who are active in extractivesectors.

Figure. 8 - Sectoral Distributioof Entrepreneurial Activit b

Countr Clusters, 2006

Sector distribution

Percent of respondents involved inestablished business ownership

0 10 20 30 40 50 60

Extractive

Transforming

Business Services

Consumer oriented


Sector distribution

Percent of respondents involved inearly-stage entrepreneurial activity

0 10 20 30 40 50 60

Extractive

Transforming

Business Services

Consumer oriented






20/32


ENTREPRENEURIALDEMOGRAPHICS

Scholars of entrepreneurship in a varietof disciplines agree that age, gender, workstatus, education, income, and perceptionsare all significant socio-economic factors in apersons decision to start a business.

Age

The age distribution of earl-stageentrepreneurs is comparable betweenhigh income countries and middle incomecountries. In particular, earl-stageentrepreneurial activit is most prevalent in theage group of individuals 25-34 ears old, andleast prevalent in the 55-64 ear old group.

The age distribution of established businessowners is also comparable between the two-countr groups. On average, establishedbusiness owners are older than earl-stageentrepreneurs. Respondents aged 45-54ears old in both the middle and highincome groups reported the highest rate ofestablished business ownership.

Gender

In general, men are significantl more likelto start a business than women. In noneof the countries participating in GEM in2006 are women more active in startingand owning businesses than men. Onl inthe Philippines are women and men aboutequall likel to be entrepreneuriall active.Significant differences exist, however, in thegender gap between countries.

The gender gap exists for both earl-stageentrepreneurial activit and establishedbusiness ownership, and in both countrgroups. yet, the gender gap is morepronounced in high income countries thanin middle income countries. This could bebecause (i) the access of women to labourmarkets ma be more restricted in middleincome countries, prompting them to starttheir own businesses instead and (ii) in higher

income countries women ma have accessto social services and safet nets that ma

discourage them from setting up businesses

For both countr groups, the gender gap isgreater among established business ownersthan among earl-stage entrepreneurs.The available data does not allow us tosa whether this might be due to a highersuccess of males in getting the businessstarted and sustainable, or whether thismight signal greater future participation ofwomen in entrepreneurial activit.

Work StatusIn both countr groups, the participationrates of people currentl starting a businessare b far the highest among workingpeople, either full-time or part-time. In bothcountr groups, participation rates in earl-stage entrepreneurial activit are muchlower among people who are currentl notworking (e.g., due to unemploment), or whare not activel participating in the labourmarket because the are either students or

retired. Overall, the work status patternsare quite similar between the two countrgroups, except that the participation rates onot-working people are higher in the middleincome countries.

Education

Similar to 2005, in both clusters, people witpost-secondar or graduate educations aremore involved in earl-stage entrepreneuriaactivit.

Established business ownership in bothmiddle and high income countries doesnot show a similarl strong correlation witheducational attainment.

Overall, however, the relationship betweenentrepreneurial activit at all stages andeducation is unclear. This is probabl due tothe fact that entrepreneurial ventures are thresponse to a variet of circumstances andpresent a variet of characteristics.


21/32

Household Income

Across all countries, regardless of per capitaGDP, individuals with a higher householdincome are more likel to be involved inearl-stage entrepreneurial activit. However,differences among income groups withineach countr are less pronounced in middleincome countries.

When grouping earl-stage entrepreneurialactivit rates with respect to householdincome categories, the aggregate differencewithin high income countries is greater than

the aggregate difference within middleincome countries. This difference is far lesspronounced for established entrepreneurship.Also, the prevalence of established businessownership shows a somewhat differentpattern for the two countr groups. Higherincome levels are much more common amongestablished business owners in high incomecountries than in middle income countries.



22/32


CONCLUDING REMARKS

The GEM project provides a comprehensivedescription of entrepreneurial activit aroundthe globe. This, in turn, is intended to providea platform for debate concerning policimplications. Governments have an importantrole to pla in encouraging entrepreneurialactivit, and this role is likel to varaccording to the income level of a givencountr.

The institutional environments thatentrepreneurs operate in political, legal,

and cultural directl influence theiractivit and hence the course of economicdevelopment of the countr. Entrepreneursare present in ever countr and evercultural setting. The institutional environmentwill direct the activities of entrepreneurs.Thus, when it comes to entrepreneurship,the creation of institutions conducive toentrepreneurial activit, such as propertrights, monetar stabilit, respect andenforcement of the rules of law, legal andfinancial transparenc, market openness,and a fair competitive environment are thefundamental responsibilities of governmentall over the world.

In addition to these general principles,the expanded view of entrepreneurshipprovided b the GEM stud confirms thatentrepreneurship comes in man forms.Therefore, when it comes to entrepreneurialpolic, one size does not fit all. Effectivepolicies with respect to entrepreneurshipneed to be tailored to the local context anddepend on what aspect of its entrepreneurialportfolio a countr wishes to enhance.

Since its inception in 999, GEM hasprovided an unprecedented amount of

information on entrepreneurial activit acrocountries. We invite academics, policmakers, entrepreneurs, and anone interesteand passionate about entrepreneurship touse this information and to work with us tofurther increase what we know about thisimportant phenomenon.


23/32

23GEM TEAMS AND SPONSORS: 2006

4.0TEAMS, INSTITUTIONS, SPONSORS


24/32


TEAM INSTITUTION NATIONAL TEAM MEMBERS FINANCIAL SPONSOR APS VENDOR

Argentina Center for EntrepreneurshipIAE Management andBusiness SchoolUniversidad Austral

Silvia Torres CarbonellHector RochaNatalia Weisz

IAE Management andBusiness SchoolBanco Rio

MORI Argentina

Australia Australian GraduateSchool of Entrepreneurship,Swinburne Universit ofTechnolog and Education,Centre for Innovation andCommercialisationThe Universit of Adelaide

Kevin HindleKim KlverGar HancockNoel Lindsa

Australian GraduateSchool of Entrepreneurship,Swinburne Universit ofTechnolog and Education,Centre for Innovation andCommercialisationThe Universit of Adelaide

Australian Centrefor EmergingTechnologies and Societ

Belgium Vlerick Leuven GentManagement SchoolGhent Universit

Hans CrijnsMirjam KnockaertSophie ManigartMiguel MeulemanTom van Acker

Sabine Vermeulen

Flemish Minister ofEconomic Affairs (SteunpuntOndernemerschap,Ondernemingen enInnovatie)

TNS Dimarso

Brazil IBQP - Instituto Brasileiro daQualidade e Produtividade

Simara Maria S. S. GrecoPaulo Alberto Bastos JuniorJoana Paula MachadoSolange KrupaCarlos Artur Krger PassosJlio Csar FelixMarcos Mueller Schlemm

IBQP - Instituto Brasileiro daQualidade e ProdutividadeSEBRAE- Servio Brasileirode Apoio s Micro ePequenas EmpresasSistema Federao dasIndstrias do Estado doParan (FIEP, SESI, SENAI eIEL)

Instituto Bonilha

Canada HEC-MontralSauder School of Business,The Universit of BritishColumbia

Nathal RiverinLouis-Jacques FilionVictor CuiQianqian DuAviad PeerDaniel Muzka

Ilan Vertinsk

Gouvernement du QubecChaire dentrepreneuriatRogers-J.A.Bombardier, HECMontralThe W. Maurice youngEntrepreneurship and

Venture Capital ResearchThe Social Sciences andHumanities of Canada

BIP

Chile Universidad Adolfo Ibez

Universidad del Desarrollo

Germn Echecopar

Jos Ernesto Amors

Centro de EntrepreneurshipGrupo SantanderUniversidad Adolfo IbezCentro para elEmprendimiento laInnovacinUniversidad del Desarrollo

Benchmark

China National EntrepreneurshipCentre, Tsinghua Universit

Jian Gaoyuan ChengXibiao Liyanfu JiangWei ZhangLan Qin

Shude Shi

Beijing Municipal Science &Technolog Commission

Snovate


25/32


Colombia Coordination Team Liis GmezJorge JimnezRodrigo VarelaJuan Pablo Correales

Comfenalco Valle Centro Nacional deConsultoria

Universidad del Nor te Luis Javier SnchezAlberto Ibarra

Pontificia UniversidadJaveriana Cali

Alberto AriasFernando Pereira

Universidad ICESI Luis Miguel AlvarezAna Carolina Martnez

Univers idad de los Andes Camilo MartinezRafael Vesga

Czech Republ ic Univers it of Economics ,Prague

Martina JaklMartin Lukes

Ministr of Industr andTrade of the Czech RepublicDeloitte Czech Republic

Factum Invenio

Croatia J.J. Strossmaer Universit inOsijek

Slavica SingerNatasa SarlijaSanja PfeiferDjula BorozanSuncica Oberman Peterka

Ministr of Econom, Labourand EntrepreneurshipSME Polic Centre - CEPOR,ZagrebJ.J. Strossmaer Universitin Osijek - Facult ofEconomics, Osijek

Puls, d.o.o.,Zagreb

Denmark Centre for Small BusinessStudies, Universit ofSouthern Denmark

Thomas SchttTorben BagerHannes OttossonLone Toftild

IDEA - International DanishEntrepreneurship AcademKarl Petersen og HustrusFondUniversit of SourthernDenmarkNational Agenc forEnterprise and ConstructionVaekstfondenErnst & youngRingkbing AmtFns AmtViborg AmtSnderjllands AmtVestsjllands Amtrhus AmtVejle Amt

Institut for Konjunkturanalse

Finland Turku School of Economics

Imperial College

Anne KovalainenTommi Pukkinen Jarna HeinonenPekka StenholmErkko Autio

Tekes Finnish FundingAgenc for Technolog andInnovationTurku School of Economics

TNS Gallup O

France EM Lon Olivier TorrsDanielle RoussonSophie Vallet

Caisse des Dpts etConsignationsObservatoire des PME

CSA

German Institute of Economic andCultural Geograph,Universit of HannoverInstitute for EmplomentResearch, Nuremberg

Rolf SternbergUdo BrixChristian Hundt

Institute for EmplomentResearch, Nuremberg

Infas - Institute for AppliedSocial Sciences

Greece Foundation for Economic andIndustrial Research (IOBE)

Stavros IoannidesAggelos TsakanikasTakis Politis

Hel lenic Bank Association Datapower SA

25TEAMS, INSTITUTIONS, SPONSORS


26/32



Hungar Universit of PcsGeorge Mason UniversitCorvinus Universit ofBudapestMax Planck Institute ofEconomics

Lszl SzerbZoltan J. AcsJzsef UlbertSiri TerjesenAttila VargaJudit KrolKrisztin CsapGbor Kerkgrt

Ministr of Econom andTransportUniversit of Pcs, Facult ofBusiness and EconomcsOhio Universit

Szocio-Graf Piac-esKzvlemn-kutat Intzet

Iceland Rekjavik Universit Rgnvaldur SmundssonSilja Bjrk Baldursdttir

Rekjavik UniversitThe Confederation ofIcleandic EmploersNew Business Venture FundPrime Ministers Office

Capacent (formerl knownas Gallup)

Ireland Universit College, Dublin Paula FitzsimonsColm OGormanPia Arenius

Enterprise IrelandForfsNDP Gender Equalit Unit,

Department of Justice,Equalit and Law Reform

Behaviour and Attitudes

Ital Bocconi Universit Guido CorbettaAlexandra Dawson

Ernst & young Target Research

India Pearl School of Business,Gurgaon

Janaki RamanI. M. PandeAshutosh Bhupatkar

Pearl School of Business,Gurgaon

Metric Consultanc

Indonesia Prasetia Mula BusinessSchoolINRR (Institute of Natural &Regional Resources)Bogor Universit ofAgriculture

Agus Wijaa SoehadiImam SoesenoAsep Saefuddin

Prasetia Mula BusinessSchoolINRR (Institute of Natural &Regional Resources)

MARS (Marketing ResearchSpecialist) Indonesia

Jamaica Universit of Technolog,Jamaica

Sandra GlasgowClaudette Williams-Mers

Vanetta SkeeteIsmail Olusegun Afis

Universit of Technolog,Jamaica

National Commercial BankJamaica LimitedExport-Import Bank ofJamaica LimitedPort Authorit of JamaicaLimitedDigicelG-Tech Jamaica Limited

Koci Market Research &Data Mining Services

Japan Kobe UniversitKeio UniversitMusashi Universit

Takehiko IsobeTsuneo yahagiNoriuki Takahashi

Venture Enterprise Center SSRI

Latvia TeliaSonera Institute atStockholm School ofEconomics in Riga

Vacheslav DombrovskOlga RastriginaAndrejs JakobsonsKarlis Kreslins

TeliaSonera NDB Latvijas Fakti

Malasia Technopreneur Development

Division, MultimediaDevelopment Corp. Sdn Bhd

Dato Dr. Abu Talib Bachik

Wilson Ta Chuan HuiFahiza BasirAmran yusoffSed Azizi WafaSed Khalid WafaTengku Farith Ritthauddean

Economic Planning Unit,

Prime Ministers DepartmentMultimedia DevelopmentCorporation Sdn BhdTechnopreneurs Associationof MalasiaUniversiti Malasia Sabah

Rehanstat Sdn Bhd

Mexico Tecnolgico de Monterre,Business DevelopmentCentreTecnolgico de Monterre,EGAP, Strategic StudiesCentre

Arturo TorresMarcia CamposElvira Naranjo

Tecnolgico de Monterre Profesionales en Estudios deMercado Cultura, S.C.


27/32


Netherlands EIM Business and PolicResearch Jolanda HesselsSander WennekersKashifa SuddleAndr van StelNiels BosmaRo ThurikLorraine UhlanerIngrid VerheulPhilipp Koellinger

Dutch Ministr of EconomicAffairs Stratus (formerl known asSurve@)

Norwa Bod Graduate School ofBusiness

Lars KolvereidBjrn Will moErlend Bullvaag

Innovation NorwaMinistr of Trade andIndustrMinistr of Local Governmentand Regional DevelopmentKunnskapsparken Bod AS,Center for Innovation andEntrepreneurship

Kunnskapsfondet NordlandASBod Graduate School ofBusiness

TNS

Peru Centro de DesarrolloEmprendedor, UniversidadESAN

Jaime SeridaKeiko NakamatsuArmando BordaOswaldo Morales

Universidad ESAN SAMIMP Research

Philippines Philippine Center forEntrepreneurshipFoundation Inc.

Imelda J. MadarangSonia Tiong-AquinoVicentita CerveraGloria ChavezMa. Corazon LopezJaime Noel SantosKatrina Ka Bulaong

Philippine Center forEntrepreneurshipPresidents Social FundNational Livelihood SupportFund

Snerg BusinessConsultanc

Russia Saint Petersburg TeamSchool of Management,Saint Petersburg

Vassil DermanovValer KatkaloOlga VerhovskaaMaria Rumantsteva

School of Management,Saint Petersburg Levada-Center

Moscow TeamState Universit - HigherSchool of Economics,Moscow

Alexander ChepurenkoOlga ObraztsovaTatiana AlimovaVladimir LobachevAlla AlievaDmitr Naumov

State Universit - HigherSchool of Economics,Moscow

Levada-Center

Singapore National Universit ofSingapore (NUS)Entrepreneurship Centre

Poh Kam WongLena LeeHo yuen Ping

Standards, Productivit andInnovationBoard (SPRING) Singaporeand NationalUniversit of Singapore(NUS) Enterprise

Joshua Research Consultan

Slovenia Institute for Entrepreneurshipand Small BusinessManagement, Facult ofEconomics & Business,Universit of Maribor

Miroslav RebernikPolona TomincKsenja Pusnik

Slovenian Research AgencMinistr of the EconomSmart ComFinance Slovenian BusinessDail

RM PLUS

South Africa UCT Centre for Innovationand Entrepreneurship,Graduate School ofBusiness, Universit of CapeTown

Mike HerringtonGideon Maas

Libert Life, Standard Bank,South African Breweriesand the National ResearchFoundation

AC Nielsen ZA



28/32



Spain

Regional TeamsAndalucaAsturiasCanar I.Castille LeonCastille la ManchaCataloniaC. ValencianaExtremaduraGaliciaMadridMurciaNavarraBasque Countr

Instituto de Empresa

Regional UniversitiesCdizOviedoLas Palmas & La LagunaLenCastille la ManchaAutnoma de BarcelonaMiguel HernndezFundacin Xavier de SalasSantiago de CompostelaAutnoma de MadridMurciaPblica de NavarraDeusto & Basque Countr

Ignacio de la VegaAlicia Coduras

Regional Team DirectorsJos Ruiz NavarroJuan Ventura VictoriaRosa M. Batista CaninoMariano Nieto AntolnMiguel ngel GalindoMartnCarlos GuallarteJos M Gmez GrasRicardo HernndezMogollnJ. Alberto Dez de CastroEduardo Bueno CamposAntonio Aragn Snchez

Iaki Mas EriceIaki Pea Legazkue

Direccin Gral. PolticaPyMEsInstituto de EmpresaCmaras de ComercioJunta de AndalucaGob. del Principado deAsturiasGob. De Canarias, CabildoFondo Social EuropeoCentros de InnovacinEuropeos (Navarra, Murcia,C Len)Generalitat de CatalunaJunta de ExtremaduraAir Nostrum, CEG, BICGaliciaIMADE, FGUAM

Fundacin Caja MurciaEusko IkaskuntzaInstituto Vasco deCompetitividad and others

Instituto Opinmetre S.L .

Sweden ESBRI Entrepreneurshipand Small Business ResearchInstitute

Magnus AronssonLena RamfeltMikael Samuelsson

Confederation of SwedishEnterprise (SvensktNringsliv)NUTEK Swedish Agencfor Economic and RegionalGrowthVINNOVA SwedishGovernmental Agenc forInnovation Sstems

SKOP

Thailand College of Management,Mahidol Universit

Thanaphol VirasaBrian HuntRandall Shannon

Tang Zhi Min

Office of Small and MediumEnterprises PromotionCollege of Management,

Mahidol Universit

Talor Nelson Sofres(Thailand) Ltd.

Turke yeditepe Universit Nilufer EgricanEsra Karadeniz

SiemensTechnolog DevelopmentFoundation of Turke

Akademetre

United ArabEmirates

Zaed Universit David McGlennonKenneth J PreissDeclan McCrohanRaed Daoudi

Mohammed Bin RashidEstablishment for youngBusiness Leaders

IPSOS-STAT (Emirates)


29/32


United Kingdom London Business School

Northern Ireland TeamSmall Business Research

Centre, Kingston UniversitScottish TeamHunter Centre forEntrepreneurship, Universitof StrathcldeWelsh TeamNational EntrepreneurshipObservatorUniversit of GlamorganCardiff Universit

Rebecca Harding

Mark Hart

Jonathan Levie

David BrooksbankDlan Jones-Evans

Small Business ServiceBarclas Bank plcEast Midlands DevelopmentAgenc, yorkshire ForwardSouth East EnglandDevelopment Agenc, NorthWest Development Agenc,Government Officesfor the North East, OneNorth East, East of EnglandDevelopment AgenciesBarking and DagenhamDistrict CouncilInstitute for Famil Business(UK)Invest Northern Ireland

Hunter Centre forEntrepreneurship, Universitof Strathclde

Welsh Assembl GovernmentWelsh European FundingOffice

Iff

Iff

Iff

Iff

United States Babson College

George Mason Universit

Erlend BullvaagI. Elaine AllenZoltan J. AcsWilliam D. BgraveStephen Spinelli, Jr.Marcia Cole

Babson College

George Mason Universit

Opinion ResearchCorp.

Urugua IEEM Business School,Universidad de Montevideo

Jorge Pablo Regent VitaleLeonardo VeigaAdrin EdelmanCecilia Gomeza

IEEM Business School,Universidad de Montevideo

Mori

GEM GlobalCoordinationTeam

London Business School

Babson College

Utrecht UniversitImperial College

Rebecca HardingMark QuillMick HancockDavina McAleelChris AlettMaria MinnitiMarcia ColeNiels BosmaErkko Autio

London Business SchoolBabson College



30/32


GERA and GEMThe Global Entrepreneurship ResearchAssociation GERA is, for formalconstitutional and regulator purposes, theumbrella organization that hosts the GEMproject. GERA is an association formed ofBabson College, London Business School,and representatives of the Association ofGEM national teams.

The GEM program is a major initiative aimedat describing and analzing entrepreneurial

processes within a wide range of countries.The program has three main objectives:

To measure differences in the level ofentrepreneurial activit between countrie

To uncover factors leading to appropriatlevels of entrepreneurship

To suggest policies that ma enhance thnational level of entrepreneurial activit.

New developments, and all global, nationaand special topic reports, can be found atwww.gemconsortium.org. The program is

sponsored b Babson College and LondonBusiness School.

Babson College

Babson College in Wellesle, Massachusetts,USA, is recognized internationall as aleader in entrepreneurial managementeducation. Babson grants BS degreesthrough its innovative undergraduateprogram, and grants MBA and custom MS

and MBA degrees through the F.W. OlinGraduate School of Business at BabsonCollege. Babson Executive Educationoffers executive development programsto experience managers worldwide. Forinformation, visit www.babson.edu

London Business School

London Business School vision is to bethe pre-eminent global business school,nuturing talent and advancing knowledgein a multinational, multicultural environment.Founded in 965, the School graduated morethan 800 MBAs, Executive MBAs, Masters inFinance, Sloan Fellows and PhDs from morethan 70 countires last ear. The Schools

executive education department serves6,000 executives and 60 corporate clients

on its programs ever ear. London BusinesSchool is based in the most accessible andinternational cit in the world and is one ofonl two business schools in the UK to beawarded a six-star (6*) rating b the HigheEducation Funding Council for England(HEFCE), confirming the School as a centerof world-class research in business and

management. For information, visit www.london.edu.

SPONSORS


31/32

CONTACTS

For more information on this report, contactthe author at:

[email protected]

To download copies of the GEM GlobalReport(s), GEM National Team Reports andto access select data sets, please visit theGEM website:

www.gemconsortium.org

Nations not currentl represented in theGEM Consortium ma express interest in

jioning and ask for additional information bemailing Marcia Cole at [email protected]

3CONTACTS


32/32

GEM 2006 Global Results Summary V2

Documents

Transcript of GEM 2006 Global Results Summary V2