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Overview and Commentary

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New Business Creation

Part of the book series: International Studies in Entrepreneurship ((ISEN,volume 27))

Abstract

Business creation is a widespread and basic feature of all market economies. Contributions to job creation, new goods and services, a broader range of work opportunities, enhanced productivity, and economic growth benefit all nations and their citizens. The scope, importance, and contributions of business creation suggest there is considerable merit in understanding the major factors affecting the occurrence and outcomes of entrepreneurial activity. There is no question that personal, environmental, cultural, contextual, and institutional factors have an impact on major aspects of the business creation process. The challenge is in determining which factors have what types of impact at each stage of the business life course.

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Notes

  1. 1.

    This special issue of Regional Studies (28:4) includes seven articles representing the harmonized analyses completed in France, Germany, Italy, Northern Ireland, Sweden, the United Kingdom, and the United States.

  2. 2.

    Data for 1998–2005 was based on a consolidated database (Reynolds and Hechavarria 2007); data for 2006, 2007, and 2008, was taken from various annual GEM Executive summaries; data for 2009 was taken from the summary of the adult population surveys distributed by the GEM coordination team.

  3. 3.

    Data on traditional versus secular-rational and survival versus self-expressive values taken from Inglehart and Welzel (2005). Data on informal investors in the population based on GEM project data sets from 2000 to 2009. Data on GDP per capita and annual change in GDP per capita from the October 2009 World Economic Outlook data set. Index on ease of registering a business based on data provided in the World Bank Doing Business 2010 report (World Bank, 2009). Data on the proportion of the population with different degrees of educational attainment from Barro and Lee (2000); data on Tonga from 2006 Tonga Statistical Abstracts. Data regarding population growth and percent of population with 25–44 years of age based on the US Census International Data Base. Data on income inequality based on Solt (2009). Data on labor force participation of men and women taken from the World Bank Genderstats data bases for the year 2007 in April 2010. Missing values were replaced by the average value for other countries in the same region: Western Europe, Central and Eastern Europe, North America and Oceana, Asia, Middle East and North Africa, Asia, Latin America and Caribbean, and Sub-Sahara Africa. This was done for Traditional versus secular-rational and survival versus self-expression values for 13 countries, male and female labor force participation for two countries, educational attainment measure for six countries, the prevalence of business angels for six countries (but not Turkey or Angola), and for the GINI index of economic inequality for seven countries. The informal investor prevalence rate for Turkey was taken from Figure 1 of Bygrave and Quill (2007).

  4. 4.

    The SPSS regression procedure drops cases if missing values on an independent variable will preclude meeting the assumptions for creating linear additive models.

  5. 5.

    In the GEM interview schedule, firms that have paid salaries and wages to the owner managers are assumed to have reached a minimal level of profitability.

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Author information

Authors and Affiliations

  1. School of Public Policy, George Mason University, Fairfax, VA, USA

    Paul D. Reynolds

Authors
  1. Paul D. Reynolds
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  2. Richard T. Curtin
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Corresponding author

Correspondence to Paul D. Reynolds .

Editor information

Editors and Affiliations

  1. George Mason University, Fairfax, 22030, Virginia, USA

    Paul D. Reynolds

  2. Survery Research Center, University of Michigan, Ann Arbor, Michigan, USA

    Richard T. Curtin

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Reynolds, P.D., Curtin, R.T. (2011). Overview and Commentary. In: Reynolds, P., Curtin, R. (eds) New Business Creation. International Studies in Entrepreneurship, vol 27. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-7536-2_11

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