1.2 Global Entrepreneurship Monitor (GEM)

Question 1

What is GEM and what was its research design?

Answer 1

• large international research project
• PURPOSE: study causes and implications of E. activity across countries, understand relationship btw E. and national development
• RESEARCH DESIGN: representative population surveys in 1999: 10 countries/ in 2014: in 73 countries
• at least 2000 sample size
• NOT counting new businesses in each country
• measurement of: E. attitudes, activity abd aspirations

Question 2

How did GEM difference entrepreneurship according to motivation?

Answer 2

• opportunity entrepreneurs: start business because they exploit a business opportunity
• necessity entrepreneurs: they start a business because they don´t see a better employment alternative

Question 3

In which types did GEM categorise the participating countries? (Country Typology)

Answer 3

• FACTOR DRIVEN: low econ. development, large agriculture, migration from agriculture to industry –> oversupply of labour –> necessity of entrepreneurship
• EFFICIENCY-DRIVEN: emerging manufacturing sector through economies of scale from industry development
• INNOVATION-DRIVEN: shifting from industry to service sector –> increasing knowledge and R&D –> E shifts from necessity E. to Opportunity E.

Question 4

Which types of E. did GEM categorise?

Answer 4

1) nacent E.: commit resources for a business they expect to own, not paid wages for more than three months
2) New business owner: currently owners of company, recieved wages for up to 42 months
3) established busines owner: business they own has been running for at least 42 months

Question 5

What are the most important results from GEM

Answer 5

• men found much more business in almost all the countries than women
• a lot of people overestimate themselfs and think they would be able to found abusiness
• most early stage financing comes from family and banks in most of the regions
• Innovation counties require the largest amount of capital to start a business