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GEM 2011 Global Report Extended 2011 Extended Report: Entrepreneurs and Entrepreneurial Employees Across the Globe Niels Bosma, Sander Wennekers and José Ernesto Amorós GLOBAL ENTREPRENEURSHIP MONITOR 2011 EXTENDED REPORT: Entrepreneurs and Entrepreneurial Employees Across the Globe Niels Bosma, Utrecht University & Global Entrepreneurship Research Association Sander Wennekers, EIM Business & Policy Research José Ernesto Amorós, Universidad del Desarrollo Founding and Sponsoring Institutions: Babson College, Babson Park, MA, United States Lead Sponsoring Institution and Founding Institution Universidad del Desarrollo, Santiago, Chile Sponsoring Institution UniversitiTun Abdul Razak, Malaysia Sponsoring Institution London Business School, London, United Kingdom Founding Institution Although GEM data were used in the preparation of this report, their interpretation and use are the sole responsibility of the authors. The authors would like to thank Erkko Autio, Alicia Coduras, Jolanda Hessels, Donna Kelley, Miguel Meuleman, Jeff Seaman, Rolf Sternberg and Peter van der Zwan for providing comments on earlier drafts and/or their crucial role in the data collection procedures. Special thanks go to Jonathan Levie, and Yana Litovsky for their tremendous contributions to this report. Also, an acknowledgement to Carlos Poblete for his help on the edition. The authors would also like to express their gratitude to all participating GEM 2011 national teams. The usual disclaimer applies. © 2012 by Niels Bosma, Sander Wennekers, José Ernesto Amorós and Global Entrepreneurship Research Association (GERA) 1 CONTENTS 1. Introduction: Entrepreneurs, Entrepreneurial Employees and the Global Economy ....................... 7 1.1. The GEM Project ..................................................................................................................... 8 1.2. GEM Methodology: Key Issues ............................................................................................... 9 1.3. The GEM Model .................................................................................................................... 10 1.4. Patterns of Entrepreneurship: A Country Classification ....................................................... 13 2. The ‘State of Entrepreneurship’ in 2011 ........................................................................................ 15 2.1 Introduction .......................................................................................................................... 15 2.2 Entrepreneurial Attitudes and Perceptions .......................................................................... 15 Individuals’ Perceptions: Opportunities, Capabilities and Fear of Failure ...................................... 16 Entrepreneurial Intentions ............................................................................................................. 16 National attitudes: status and media attention ............................................................................. 18 2.3 Entrepreneurial Activities ..................................................................................................... 19 Phases of Entrepreneurial Activity ................................................................................................. 19 Total early-stage Entrepreneurial Activity ...................................................................................... 21 Individual Drivers: Motivations to Start Businesses ....................................................................... 24 Social Inclusion: Demographics and Early-Stage Entrepreneurial Activity ..................................... 27 Established Business Ownership .................................................................................................... 30 Business Discontinuations .............................................................................................................. 33 2.4 Entrepreneurial Aspirations .................................................................................................. 34 Growth Orientation ........................................................................................................................ 34 Innovative Orientation ................................................................................................................... 38 International Orientation ............................................................................................................... 39 2.5 Trends in entrepreneurship .................................................................................................. 40 3. Conditions for entrepreneurship .................................................................................................... 43 3.1. Introduction ................................................................................................................................. 43 3.2. The GEM National Experts Survey ............................................................................................... 43 NES Methodology ........................................................................................................................... 44 3.3. The State of Entrepreneurship Institutions in 2011 .................................................................... 45 3.4. Entrepreneurship Conditions and Other Indicators .................................................................... 50 4. Entrepreneurial Employee Activity ................................................................................................. 53 4.1. Introduction .......................................................................................................................... 53 4.2. Definitions ............................................................................................................................. 53 4.3. The prevalence of entrepreneurial employee activity .......................................................... 55 4.4. Some characteristics of entrepreneurial employees ................................................................... 62 Entrepreneurial perceptions and intentions of entrepreneurial employees ................................. 63 Operational characteristics ............................................................................................................ 65 Aspirations of entrepreneurial employee activity .......................................................................... 67 4.5. National level correlations .......................................................................................................... 69 Underlying mechanisms ................................................................................................................. 69 Correlation between entrepreneurial employee activity and per capita income .......................... 69 Correlations between entrepreneurial employee activity and other variables ............................. 70 Correlations between entrepreneurial employee activity and independent early-stage entrepreneurial activity .................................................................................................................. 73 4.6 A typology of economies based on entrepreneurship patterns ................................................... 75 Distinct characteristics of the types of economies ......................................................................... 79 5. Conclusions ..................................................................................................................................... 81 Patterns of entrepreneurial activity are not random ..................................................................... 81 A typology of economies based on entrepreneurship patterns ..................................................... 82 The state of entrepreneurship at the national level ...................................................................... 83 Conditions for entrepreneurship .................................................................................................... 84 Characteristics of entrepreneurial individuals ............................................................................... 84 Implications .................................................................................................................................... 85 References .......................................................................................................................................... 87 2 GEM 2011 Country Summaries .................................................................................................. 91 Algeria ................................................................................................................................................ 92 Argentina ............................................................................................................................................ 94 Australia ............................................................................................................................................. 96 Bangladesh ......................................................................................................................................... 98 Barbados .......................................................................................................................................... 100 Belgium ............................................................................................................................................
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