Detailed presentation Entrepreneurship Research

Enterprises research

1. Entrepreneurship research

2. Research Review and Research Trends
The debate on the distinctive domain of
entrepreneurship
Most researchers have defined the field exclusively
in terms of who the entrepreneur is and what the
entrepreneur does.
The phenomenon of entrepreneurship has lacked a
conceptual framework.
As an academic field, entrepreneurship is a general
concept

3. Entrepreneurship Research
(during 2001-08)
Analysis of 665 researches papers published in Journal of
Small Business Management (JSBM),
Journal of Business Venturing (JBV), and
Entrepreneurship Theory and Practice (ET&P).
Classification of papers (Conceptual and Empirical;
Quantitative or Qualitative analysis; Primary or
Secondary data, etc)
Source: Mullen, M. R., Budeva, D. G. and Doney, P. M. 2009. Research methods in the leading
small business- entrepreneurship journals: A critical review with recommendations for future
research. Journal of business Venturing, 47(3): 287-307).

4. …Entrepreneurship Research
Categories No. Percentage
Conceptual 187 29
Empirical 478 71
Total665 100
Quantitative (Out of 478 i.e. Empirical) 428 89
Qualitative 50 11
Total478 100
Primary Data (Out of 428 i.e. Quantitative) 273 64
Secondary Data 155 36
Total428 100
Surveys Research (Out of 273 i.e. Primary) 260 95
Experiments 13 5
Total273 100
International component (Out of 665) 179 27

5. Entrepreneurship Research (2000-2014) in top
six Brazilian Journals of Administration.
Categories No. Percentage
Theoretical 18 25
Empirical 54 75
Total 72 100
Primary (collected in the field) 43 80
Secondary 6 11
Primary and secondary 5 9
Total Type of data 54 100
Source: Benedito, A. (2018). Entrepreneurship research (2000-2014) in the top six Brazilian
journals of administration: gaps and directions, Cad. EBAPE.BR vol.16
 no.4 Rio de Janeiro

6. …Entrepreneurship Research
Most studies are quantitative and survey-based.
Qualitative studies, case-studies, historical and longitudinal
analyses, grounded theory research, action research, etc. are
far fewer.
Needed: Historical analyses (Macro-level), Biographical/case
analyses (Micro-level).
Combination methods needed to make use of the richness of
qualitative data and the generalization power of quantitative
data.
Quantitative analysis describes the WHAT of the
phenomenon; Qualitative explains the WHY. (Both are
needed, but the latter provides superior knowledge!).

7. Themes in Entrepreneurship Research
(2001 to 2008)
Corporate entrepreneurship
The economic role of entrepreneurs
Organization change and development
Start up and growth of new ventures
Formal venture capital
Strategic management in entrepreneurship
Female/ethnic minorities and family business
Characteristics of entrepreneurs/hip
Government policy and regional development

8. Special Issues in Entrepreneurship: Theory
and Practice 2008–2012
Special issue ETP reference
Social Entrepreneurs’ Behavior Volume 36, Issue 5, September 2012
Extending Women’s Entrepreneurship in New DirectionsVolume 36, Issue 3, May 2012
The Heart of Entrepreneurship Volume 36, Issue 1, January 2012
Theory of the Family Enterprise Volume 35, Issue 6, November 2011
New Directions in Franchising Research Volume 35, Issue 3, May 2011
Future of Entrepreneurship Volume 35, Issue 1, January 2011
Theory of the Family Enterprise Volume 34, Issue 6, November 2010
Social Entrepreneurship Volume 34, Issue 4, July 2010
Institutional Theory & Entrepreneurship Volume 34, Issue 3, May 2010
Entrepreneurial and Business Growth Volume 34, Issue 2, March 2010
Transnational Entrepreneurship Volume 33, Issue 5, September 2009
Strategic Entrepreneurship Volume 33, Issue 1, January 2009
Theory of Family Enterprising Volume 32, Issue 6, November 2008
Government and Entrepreneurial Activity Volume 32, Issue 5, September 2008
Entrepreneurship Research in Europe Volume 32, Issue 2, March 2008
Entrepreneurship in Emerging Economies Volume 32, Issue 1, January 2008

9. Global Entrepreneurship Monitor (GEM)
GEM conducts an annual assessment of the entrepreneurial
activity across a wide range of countries.
Initiated in 1999 as a partnership between London Business
School and Babson College, USA., with 10 countries
In 20 years, GEM consortium has grown to 73 countries.
GEM developed a mechanism to evaluate entrepreneurial
activities and entrepreneurial framework conditions in any
country, of which Adult Population Survey (APS) and
National Expert Survey (NES) form a part.

10. Classification of Economies
GEM adopted World Economic Forum’s (WEF)
classification of economies for its study.
According to WEF’s Global Competitiveness Report,
the classification of the economies are:
Factor-driven (Low and Lower Middle Income)
Efficiency-driven (Upper Middle Income)
Innovation-driven (High Income)

11. …Classification of Economies
Factor driven Phase
Characterized by subsistence agriculture and extraction business, with heavy
reliance on (unskilled) labor and natural resources.
The development efforts focus towards building a sufficient foundation of
basic requirements

Low wages.
Efficiency driven Phase
An economy becomes more competitive with further development
characterized by industrialization and an increased reliance on economies of
scale, with capital-intensive large organizations becoming more dominant.
Innovation driven Phase

Businesses are more knowledge-intensive, and the service sector expands.

wages will have risen and company are able to sustain those higher wages
Companies must compete by producing new and different goods using the
most sophisticated production processes and by innovating new ones.

12. Low-Income Middle-Income High-Income
East and
South Asia
India
Indonesia
China
Thailand
Japan, Republic of Korea, Taiwan
Europe and
North
America
Bulgaria
Kazakhstan
Russian Federation
Turkey
Austria, Canada, Croatia, Cyprus
France, Germany, Greece, Ireland
Italy, Latvia, Luxembourg
Netherlands, Poland, Slovak
Republic
Slovenia, Spain, Sweden,
Switzerland
United Kingdom, United States
Latin
America and
Caribbean
Brazil, Colombia
Dominican Republic
Guatemala, Mexico,
Peru
Middle East
and Africa
Angola, Egypt
Madagascar
Morocco
Mozambique
Sudan
Iran
Lebanon
Israel
Qatar
Saudi Arabia
United Arab Emirates
Participating Economies (2018)

13. Objectives of GEM
Measure global differences in the level & nature of
entrepreneurial activity
Uncover factors determining levels of entrepreneurial
activity
Identify policies that may enhance entrepreneurship
Obtain a detailed picture of the world's entrepreneurs
Determine entrepreneur’s role in economic development
Set international standards for social survey based
entrepreneurship research

14. The GEM Model

15. Operational Definition of total early-stage
entrepreneurial activity (TEA)
Entrepreneurial activity includes multiple phases of the business process (nascent, new
business, established business, discontinuation), potential impact (job creation,
innovation, internationalization), and type of activity (such as total early-stage
entrepreneurial activity or TEA, social entrepreneurial activity or SEA and employee
entrepreneurial activity or EEA).

16. GEM Entrepreneurial Phases
Total Early Stage Entrepreneurial
Activity

17. Components of the Entrepreneurial
Phenomenon
Social values,
perceptions, cognitive
factors
Business and self-
employment
dynamics
Context:
Entrepreneurial
framework
conditions
ADULT POPULATION SURVEY (APS)
NATIONAL EXPERTS SURVEY (NES)

18. National Expert Survey

19. NATIONAL EXPERTS SURVEY (NES)
This survey, mainly collects
data on a country’s
Entrepreneurial Framework
Conditions (EFCs) :
Each GEM team is required to
compulsorily make the:
1.FINANCING FOR ENTREPRENEURS
2.GOVERNMENTAL POLICIES
3.GOVERNMENTAL PROGRAMS
4.ENTREPRENEURIAL EDUCATION AND TRAINING
5.R&D TRANSFER
6.COMMERCIAL AND PROFESSIONAL
INFRASTRUCTURE
7.INTERNAL MARKET OPENNESS
8.PHYSICAL AND SERVICES INFRASTRUCTURE
9.SOCIAL AND CULTURAL NORMS
Context: Entrepreneurial framework
conditions

20. Nine conditions identified by GEM, which were used consistently for
assessing the entrepreneurial framework conditions of nations. They are:
Finance: 
The availability of financial resources, equity and debt for small
and medium enterprises (SMEs) (including grants and
 subsidies).
Government policies: 
The extent to which taxes or regulations are either
size-neutral or encourage SMEs.
Government programs: 
The presence and quality of direct programs to
assist new and growing firms at all levels of government (national, regional,
municipal).
 
Entrepreneurial education and training: 
 The extent to which training for
creating or managing SMEs is
 incorporated within the education and
training system at all levels (primary, secondary and post-school).
R&D transfer: 
The extent to which national research and development will
leads to new commercial opportunities and is available to SMEs.
…(EFCs)

21. Commercial and professional infrastructure: The presence of
property rights, commercial, accounting, and other legal services and
institutions that support or promote SMEs.
Entry regulation: Contains two components: (1) Market Dynamics:
the level of change in markets from year to year, and (2) Market
Openness: the extent to which new firms are free to enter existing
markets.
  
Physical infrastructure and services: 
Ease of access to physical
resources i.e. communication,
 utilities, transportation, land or space,
at a price that competitive for all players.
Cultural and social norms: 
The extent to which social and cultural
norms
 encourage or allow actions leading to new business methods
or activities that can potentially increase personal wealth and income.
…(EFCs)

22. NES data is collected by interviewing experts
Experts are selected by the National Team
Each team suppose to interview minimum 36 experts on Entrepreneurial
Framework Conditions (EFCs)
The 36 individuals are 4 experts for each of the 9 conditions. Then, 4x9
= 36
For financing, experts may be institutions or individual that are
associated with FINANCING for entrepreneurs in the country, It
includes:
Banks and building societies
Venture capital associations
Business angels associations
Informal investors
Entrepreneurs

Government agencies that provide funds for entrepreneurs
The NES: Key Points

23. Reliability of Tools
Blocks Variables No. of
items
Range of ScoreCronbach Alpha
A Financial environment 8 8 - 72 0.87
B1 Government Policy Priority & Support 3 3- 27 0.86
B2 Government Policy Bureaucracy & Taxes 4 4 - 36 0.77
C Government Programme 6 6 - 54 0.90
D1 Education at Primary and Secondary Level 3 3- 27 0.91
D2 Education: Professional & Vocational 3 3- 27 0.86
E R & D Transfer 6 6 - 54 0.87
F Commercial & Service Infrastructure 5 5 - 45 0.85
G1 Internal Market Dynamics 2 2 - 18 0.92
G2 Internal Market Burdens 4 4 - 36 0.83
H Physical Infrastructure 5 5 - 45 0.84
I Cultural and Social Norms 5 5 - 45 0.91
V1 Legal & government support for FB 5 5 - 45 0.82
V2 Societies trust on FB compared to non-FB 1 1 - 9 NA
V3
Perception on professional versus family
management of FB
1 1 - 9 NA

24. Adult Population Survey (APS)

25. Some APS Facts
The Adult Population Survey (APS) investigates the role of the
individual in the lifecycle of the entrepreneurial process and his or
her characteristics or actions
A representative sample of the adult population is used to estimate the
entrepreneurial activity that represents the entire country.
The APS is unique because it measures
Motives

Attitudes
Actions
Business characteristics

26. Survey Design Guidelines
GEM’s only fixed requirement is that a team collects a nationally
representative sample of at least 2000 adults. (We normally take up sample
size of over 3000)
To ensure this, GEM provides guidelines about:
Proper choice of respondent contact method
Sufficient number of callbacks and initial contact attempts
Appropriate time of survey administration
Appropriate stratification of sample
Sample can be using any combination of:
Face-to-face
Fixed line
Mobile phone

27. Survey Design Decisions
How will respondents be contacted?
Will the sample be stratified?
Will you collect an oversample?
How large will your sample be?
What age range will you use?
How many callbacks/initial contact attempts?
When will the survey be conducted?

28. Teams should collect a sample that is proportional to the national population
distribution.
Oversample: others may collect disproportionately more responses in a
region(s), such as a metropolitan area
Required to meet the n=2000 not counting oversample
Oversample may be part of main sample or separate
If part of main sample, weights need to account for oversample
Use approved APS methodology
‘The Kish Grid’ method of sampling has been used in APS.
Rather than selecting respondents directly from the population, the two-stage
sampling method was used.
If the selected person was not available at that time of initial visit, at least 3
more visits were made before moving on to another respondent.
Sample Design Options

29. All analysis of GEM APS data MUST use weights.
National weight mean =1 (does not account for different
sample sizes; weighted total will match the un-weighted
total).
Weights differ by the type and age/range of sample.
Weighted age/gender distribution must be nationally
representative.
Strata-based weights must match overall strata sizes.
Very large values for weights (high leverage cases) are not
allowed.
Weights

30. Strata Issue
India has twice the rural
population as compared to
urban population while the
final data has urban population
twice as of the rural population.
 Location Total Percentage
Urban 240,644,219 34
Rural 477,240,949 66
Population
 Location Total Percentage
Urban 2603 65
Rural 1397 35
Surveyed Respondents
Location
 
No. Percentage
Urban 1341 34
Rural 2659 66
Weighted Sample Distribution

31. Among females there is an under-
representation of the 18 to 24 of
age group.
Biased Sample Distribution
Actual Sample
 Age Male Female
18-24 471 382
25-34 575 583
35-44 478 436
45-54 356 306
55-64 198 215
Ideal Sample
 Age Male Female
18-24 477 463
25-34 576 540
35-44 446 429
45-54 334 298
55-64 213 225
Deviation
 Age Male Female
18-24 -1.3% -17.4%
25-34 -0.2% 7.9%
35-44 7.2% 1.7%
45-54 6.7% 2.7%
55-64 -6.9% -4.4%

32. Callbacks & Contact Attempts
Callback:
Attempt to reach respondent once he/she is identified and targeted for APS
Initial contact attempt:
Attempt to reach a household or individual before a specific individual is targeted
for APS
Minimum required for each:
Face-to-face: 3
Fixed or mobile phone: 5

33. Change over 30% from previous year
highlighted
Key Indicators 2014 2015 2016 2017 Change
Total early-stage Entrepreneurial Activity 6.60 10.83 10.59 9.28 12.37%
Established Business Ownership Rate 3.73 5.5 4.57 6.22 36.11%
New Business Ownership Rate 2.54 3.17 6.76 4.56 32.54%
Nascent Entrepreneurship Rate 4.12 7.7 3.93 4.85 23.41%
Informal Investors Rate 1.35 2.84 5.33 3.09 42.03%
Improvement Opportunity TEA 36.54 34.26 43.32 28.88 33.33%
Necessity TEA 31.71 18.92 35 38.6 10.29%
Male TEA 8.52 13.65 13.45 10.29 23.49%
Female TEA 4.58 7.88 7.6 8.22 8.16%
Perceived Capabilities 36.70 37.84 43.99 42.05 4.41%
Perceived Opportunities 38.91 37.79 44.34 44.92 1.31%
Know Startup Entrepreneur Rate 23.06 37.6 33.33 30.82 7.53%

34. Relationship of GDP and TEA
•On one hand the structural reforms of 2017 impacted GDP negatively,
however, on the other hand these reforms boosted Entrepreneurial
activities in India.
•Moreover, COVID-19 has adversely impacted both, GDP & TEA.

35. A Comparison of GDP and TEA