Understanding the Determinants of Nascent Entrepreneurship in Entrepreneurially Active and Passive Economies: A Macro-Level Analysis

Abstract

 This quantitative study investigates the determinants of nascent entrepreneurship in GEM participating economies. Findings suggest that various economic and non-economic factors determine nascent entrepreneurial activity in these countries. However, complementing the on-going research on nascent entrepreneurship, the study has addressed a void in literature by examining the impact of entrepreneurial characteristic of an economy on its nascent entrepreneurial activity rate. Empirical estimates suggest that if an economy is entrepreneurially active it offers a significant positive impact on nascent entrepreneurship. Other active factors advancing nascent entrepreneurship in the sample countries include: per capita income, research and development expenditures, days required to start a business, certain age groups of the population, confidence of an individual on his/her skills to do business, desirability to pursue entrepreneurship as a career and the presence of entrepreneurial role models in an economy. Policy implications relate to measures suggested for advancing nascent entrepreneurship economies.  in 
entrepreneurially passive