Factors Influencing Nascent Entrepreneurship Across Countries: An Evolutionary Perspective

Factors Influencing Nascent Entrepreneurship Across Countries: An Evolutionary Perspective

Maria Manuela Santos Natário (Research Unit for Inland Development, Polytechnic Institute of Guarda, Portugal)
DOI: 10.4018/978-1-7998-4826-4.ch004
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Abstract

Nascent entrepreneurship is one phase of entrepreneurial activity that covers the first months in creating new ventures after the identification of business opportunities. On the other hand, the 4.0 revolution has created new opportunities but also disruption and polarization within and between economies and societies. Thus, this chapter reflects upon factors that influence nascent entrepreneurship across countries in an evolutionary approach, considering the previous findings and the influence of Fourth Industrial Revolution. The aim is to verify the conditions associated to nascent entrepreneurship using different perspectives of analysis. Correlation analysis is applied using various explanatory variables derived from different approaches. Clusters analysis is applied to verify how different countries are positioned in terms of nascent entrepreneurship. Scheffe's test of mean differences distinguishes the unique characteristics of each cluster and assesses the principal determinants of the nascent entrepreneurship capacity.
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Literature Review

The GEM considers entrepreneurial activity according to: (1) venture lifecycle phases (nascent, new venture, established venture, discontinuation); (2) types of activity (high growth, innovation, internationalization); (3) and the sector of the activity (total early-stage entrepreneurial activity [TEA], social entrepreneurial activity [SEA], employee entrepreneurial activity [EEA]) (Singer et al., 2015).

Nascent entrepreneurship rate is defined as the percentage of individuals aged 18-64 who are currently a nascent entrepreneur. In other words, they are actively involved in establishing a business they will own or co-own; this business has not paid salaries, wages, or other payments to the owners for more than three months (Singer et al., 2015). Nascent entrepreneurs are engaged in creating new ventures (Wagner, 2004). Gutterman (2016) considers the nascent entrepreneur phase as covering the first three months after the entrepreneur establishes a new business to pursue identified opportunities.

Key Terms in this Chapter

Pillars of Competitiveness: Different components or categories, each measuring a different aspect of competitiveness. The Global Competitiveness Report published by the World Economic Forum grouped into 12 categories the pillars of competitiveness.

Entrepreneurship Framework Conditions: The most important components of any entrepreneurship ecosystem and constitute the necessary oxygen of resources, incentives, markets and supporting institutions for the creation and growth of new firms.

Competitiveness: The set of institutions, policies, and factors that determine the level of productivity of a country.

Entrepreneurship: The process of creation of business (nascent, new business, established business, discontinuation).

New Business: Individuals aged 18-64 who are currently an owner-manager of a new business that has paid salaries, wages, or other payments to the owners for more than three months but no more than 42 months.

Nascent Entrepreneurship: Individuals aged 18-64 who are actively involved in establishing a business that they will own or co-own (this business has not paid salaries, wages, or other payments to the owners for more than three months).

National Culture: The collective programming of the mind distinguishing the members of one group or category of people from others.

Cultural Dimensions: Represent independent preferences for one state of affairs over another that distinguish countries (rather than individuals) from each other.

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