Abstract
Scholars note the importance of the entrepreneurial ecosystem in promoting new venture activity. Yet to date, limited focus has been given to its impact on female venturing. Accordingly, our study investigates if the entrepreneurial ecosystem influences the prevalence of male and female entrepreneurship over time. We analyze the effect of entrepreneurial ecosystems in 75 countries between 2001 and 2014 on the rates of entrepreneurship for men and women using aggregate data from the Global Entrepreneurship Monitor Adult Population Survey and National Expert Survey. Findings indicate that the prevalence in entrepreneurship is highest for women when the entrepreneurial ecosystem features low barriers to entry, supportive government policy towards entrepreneurship, minimal commercial and legal infrastructure, and a normative culture that supports entrepreneurship. Conversely, we find that prevalence rates for men are highest when there is supportive government policy but weak government programs aimed towards business creation.
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Notes
Not all countries completed both the GEM APS protocol and GEM NES protocol for the same year, which affects the total size of the sample over our 14 year period.
Due to low case counts, year dummies are excluded in the disaggregated analysis of factor-driven economies, by doing so we ensure we have sufficient degrees of freedom to extrapolate findings form out sub-sample to other factor-driven economies. However, it should be noted that certain S.E. in all the sub-samples are higher than overall sample. This is a function of having fewer cases, and why some relationships are now, no longer significant. This also suggest that the sub-samples maybe misspecified. There are likely unique control variables appropriate for each sub-sample that we are not including. Findings should be interpreted with caution.
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Acknowledgments
We would like to especially thank Friederike Welter and two anonymous reviewers for their feedback and time while reviewing prior versions of our paper. We would also like to thank special issue editors Tatiana Manolova, Linda Edelman, Candida Brush, and Alicia Robb. We would also like to thank Paul Reynolds for advice provided during empirical analysis of the GEM APS and NES datasets. Finally, we also would like to thank Patricia Nickinson for her feedback on prior versions of this paper. An earlier version of this paper was presented at the 2015 DIANA International Research Conference in Babson, MA, where it was first-runner up for Best Empirical Paper.
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Appendices
Appendix 1. Countries and number of years used in the analysis
Country | Number of years |
|---|---|
Algeria | 2 |
Angola | 2 |
Argentina | 11 |
Austria | 5 |
Barbados | 3 |
Belgium | 9 |
Bosnia and Herzegovina | 6 |
Botswana | 1 |
Brazil | 12 |
Canada | 4 |
Chile | 10 |
China | 6 |
Colombia | 7 |
Croatia | 12 |
Denmark | 8 |
Dominican Republic | 1 |
Ecuador | 5 |
Estonia | 2 |
Finland | 12 |
France | 6 |
Gahanna | 1 |
Germany | 10 |
Greece | 11 |
Guatemala | 3 |
Hong Kong | 1 |
Hungary | 8 |
Iceland | 7 |
India | 2 |
Iran | 5 |
Ireland | 10 |
Israel | 2 |
Italy | 8 |
Jamaica | 4 |
Japan | 4 |
Latvia | 7 |
Lithuania | 3 |
Macedonia | 1 |
Malawi | 1 |
Malaysia | 5 |
Mexico | 5 |
Namibia | 1 |
Netherlands | 9 |
New Zealand | 3 |
Nigeria | 2 |
Norway | 12 |
Pakistan | 2 |
Panama | 3 |
Peru | 8 |
Philippines | 1 |
Poland | 3 |
Portugal | 4 |
Romania | 3 |
Russia | 8 |
Saudi Arabia | 1 |
Serbia | 2 |
Singapore | 7 |
Slovakia | 3 |
Slovenia | 12 |
South Africa | 12 |
South Korea | 5 |
Spain | 12 |
Sweden | 5 |
Switzerland | 8 |
Taiwan | 4 |
Thailand | 4 |
Trinidad and Tobago | 4 |
Tunisia | 1 |
Turkey | 6 |
Uganda | 4 |
United Arab Emirates | 1 |
United Kingdom | 10 |
United States | 12 |
Uruguay | 7 |
West Bank Gaza Strip | 1 |
Zambia | 1 |
Appendix 2. List of items used to measure entrepreneurial ecosystems
Dimension | Variable | Description |
|---|---|---|
Financial environment | A01 | In my country, there is sufficient equity funding available for new and growing firms |
Financial environment | A02 | In my country, there is sufficient debt funding available for new and growing firms |
Financial environment | A03 | In my country, there are sufficient government subsidies available for new and growing firms |
Financial environment | A04 | In my country, there is sufficient funding available from private individuals (other than founders) for new and growing firms |
Financial environment | A05 | In my country, there is sufficient venture capitalist funding available for new and growing firms |
Financial environment | A06 | In my country, there is sufficient funding available through initial public offerings (IPOs) for new and growing firms |
Government policy and support | B01 | In my country, government policies (e.g., public procurement) consistently favor new firms |
Government policy and support | B02 | In my country, the support for new and growing firms is a high priority for policy at the national government level |
Government policy and support | B03 | In my country, the support for new and growing firms is a high priority for policy at the local government level |
Government policy and taxes | B04 | In my country, new firms can get most of the required permits and licenses in about a week |
Government policy and taxes | B05 | In my country, new firms can get most of the required permits and licenses in about a week |
Government policy and taxes | B06 | In my country, taxes and other government regulations are applied to new and growing firms in a predictable and consistent way |
Government policy and taxes | B07 | In my country, coping with government bureaucracy, regulations and licensing requirements is not unduly difficult for new and growing firms |
Government programs | C01 | In my country, a wide range of government assistance for new and growing firms can be obtained through contact with a single agency |
Government programs | C02 | In my country, science parks and business incubators provide effective support for new and growing firms |
Government programs | C03 | In my country, there are an adequate number of government programs for new and growing businesses |
Government programs | C04 | In my country, the people working for government agencies are competent and effective in supporting new and growing firms |
Government programs | C05 | In my country, almost anyone who needs help from a government program for a new or growing business can find what they need |
Government programs | C06 | In my country, government programs aimed at supporting new and growing firms are effective |
Entrepreneurial education | D01 | In my country, teaching in primary and secondary education encourages creativity, self-sufficiency and personal initiative |
Entrepreneurial education | D02 | In my country, teaching in primary and secondary education provides adequate instruction in market economic principles |
Entrepreneurial education | D03 | In my country, teaching in primary and secondary education provides adequate attention to entrepreneurship and new firm creation |
Entrepreneurial education | D04 | In my country, colleges and universities provide good and adequate preparation for starting up and growing new firms |
Entrepreneurial education | D05 | In my country, the level of business and management education provides good and adequate preparation for starting up and growing new firms |
Entrepreneurial education | D06 | In my country, the vocational, professional and continuing education systems provide good and adequate preparation for starting up and growing new firms |
R&D transfer | E01 | In my country, new technology, science, and other knowledge are efficiently transferred from universities and public research centers to new and growing firms |
R&D transfer | E02 | In my country, new and growing firms have just as much access to new research and technology as large, established firms |
R&D transfer | E03 | In my country, new and growing firms can afford the latest technology |
R&D transfer | E04 | In my country, there are adequate government subsidies for new and growing firms to acquire new technology |
R&D transfer | E05 | In my country, the science and technology base efficiently supports the creation of world-class new technology-based ventures in at least one area |
R&D transfer | E06 | In my country, there is good support available for engineers and scientists to have their ideas commercialized through new and growing firms |
Commercial infrastructure access | F01 | In my country, there are enough subcontractors, suppliers and consultants to support new and growing firms |
Commercial infrastructure access | F02 | In my country, new and growing firms can afford the cost of using subcontractors, suppliers and consultants |
Commercial infrastructure access | F03 | In my country, it is easy for new and growing firms to get good subcontractors, suppliers and consultants |
Commercial infrastructure access | F04 | In my country, it is easy for new and growing firms to get good, professional legal and accounting services |
Commercial infrastructure access | F05 | In my country, it is easy for new and growing firms to get good banking services (checking accounts, foreign exchange transactions, letters of credit and the like) |
Internal market dynamics | G01 | In my country, the markets for consumer goods and services change dramatically from year to year |
Internal market dynamics | G02 | In my country, the markets for business-to-business goods and services change dramatically from year to year |
Internal market burdens | G03 | In my country, new and growing firms can easily enter new markets |
Internal market burdens | G04 | In my country, the new and growing firms can afford the cost of market entry |
Internal market burdens | G05 | In my country, new and growing firms can enter markets without being unfairly blocked by established firms |
Internal market burdens | G06 | In my country, the anti-trust legislation is effective and well enforced |
Physical infrastructure and services | H01 | In my country, the physical infrastructure (roads, utilities, communications, waste disposal) provides good support for new and growing firms |
Physical infrastructure and services | H02 | In my country, it is not too expensive for a new or growing firm to get good access to communications (phone, Internet, etc.) |
Physical infrastructure and services | H03 | In my country, a new or growing firm can get good access to communications (telephone, Internet, etc.) in about a week |
Physical infrastructure and services | H04 | In my country, new and growing firms can afford the cost of basic utilities (gas, water, electricity, sewer) |
Physical infrastructure and services | H05 | In my country, new or growing firms can get good access to utilities (gas, water, electricity, sewer) in about a month |
Cultural, social norms supportive | I01 | In my country, the national culture is highly supportive of individual success achieved through own personal efforts |
Cultural, social norms supportive | I02 | In my country, the national culture emphasizes self-sufficiency, autonomy and personal initiative |
Cultural, social norms supportive | I03 | In my country, the national culture encourages entrepreneurial risk-taking |
Cultural, social norms supportive | I04 | In my country, the national culture encourages creativity and innovativeness |
Cultural, social norms supportive | I05 | In my country, the national culture emphasizes the responsibility that the individual (rather than the collective) has in managing his or her own life |
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Hechavarría, D.M., Ingram, A.E. Entrepreneurial ecosystem conditions and gendered national-level entrepreneurial activity: a 14-year panel study of GEM. Small Bus Econ 53, 431–458 (2019). https://doi.org/10.1007/s11187-018-9994-7
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DOI: https://doi.org/10.1007/s11187-018-9994-7
Keywords
- Entrepreneurial ecosystems
- Global entrepreneurship monitor
- Female early-stage entrepreneurship
- Male early-stage entrepreneurship