Journal Article

Determinants and Effects of New Business Creation Using Global Entrepreneurship Monitor Data

Wennekers, Sander, Sternberg, Rolf

2005

Overview

This paper is an introduction to the present special issue dedicated to scientific research using data collected as part of the Global Entrepreneurship Monitor (GEM) and considering new venture creation as the hall-mark of entrepreneurship. After a short description of GEM's theoretical and methodological background, this introduction highlights the main results of seven papers which were presented at the First GEM Research Conference in Berlin from 1 to 3 April 2004. First, there is empirical evidence that the role of entrepreneurial activity differs across the stages of economic development, in that there appears to be a U-shaped relationship between the level of development and the rate of entrepreneurship. Consequently, a positive effect of entrepreneurial activity on economic growth is found for highly developed countries but a negative effect for developing nations. Second, it is shown that different types of entrepreneurship may have a different impact on a nation's innovativeness and economic growth rate. In particular, potentially high-growth business startups and so-called opportunity entrepreneurship enhance knowledge spillovers and economic growth. Third, entrepreneurship is again shown to be a regional event that can only be understood if regional framework conditions, including networks and regional policies, are taken into consideration.

• Publisher: Springer,Springer Nature B.V
• Subject: Business / Business organization / Business studies / Countries / Developed countries / Developing countries / Economic development / Economic growth / Economic growth potential / Economic impact / Entrepreneurs / Entrepreneurship / Environmental policy / Growth rate / LDCs / Regional policy / Regions / Research papers / Small and medium sized enterprises / Small businesses / Spillover effect / Start up firms / Startups / Studies / Venture capital