Title: Indicators of entrepreneurship activity: some methodological contributions

Authors: Rachida Justo, Julio O. De Castro, Alberto Maydeu-Olivares

Addresses: Instituto de Empresa Business School, Serrano 105, 28006 Madrid, Spain. ' Instituto de Empresa Business School, Serrano 105, 28006 Madrid, Spain. ' University of Barcelona Instituto de Empresa Business School, Serrano 105, 28006 Madrid, Spain.

Abstract: Using a model-based approach, this paper reexamines the measurement of entrepreneurial activity at the national level. Our contribution centres on two main aspects. First, our study allows for the measurement of the likelihood of entrepreneurial behaviour, or entrepreneurial propensity. Second, utilising the social network theory, we introduce the social entrepreneurial environment as a key indicator of the likelihood of entrepreneurial activity. Using the data provided by the Global Entrepreneurship Monitor (GEM) project, we provide an alternative measure of entrepreneurial activity, which includes entrepreneurial social environment, assumes the existence of a continuum in entrepreneurial behaviour and provides a measure of entrepreneurial propensity. Results indicate that our model provides support for the combined use of entrepreneurial propensity and the entrepreneur|s social context.

Keywords: entrepreneurship; cross-country; activity measurement; entrepreneurial activity; social network theory; Global Entrepreneurship Monitor; GEM; entrepreneurial behaviour; entrepreneurial propensity.

DOI: 10.1504/IJESB.2008.019504

International Journal of Entrepreneurship and Small Business, 2008 Vol.6 No.4, pp.604 - 621

Published online: 14 Jul 2008 *

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