TY - JOUR

T1 - Determinants and effects of new business creation using global entrepreneurship monitor data

AU - Sternberg, Rolf

AU - Wennekers, Sander

N1 - Funding Information: 5 The local organizer of the first GEM Research Conference and first author of this paper would like to thank the German Research Foundation, the KfW banking group (specifically Dr. Irsch and Dr. Tchouvakhina) and ‘‘Invest in Germany’’ for supporting and financing this Conference. The organizer is also very grateful for the valuable support provided by the scientific committee of the Conference consisting of, apart from himself, Erkko Autio, Paul Reynolds and Sander Wennekers. Copyright: Copyright 2005 Elsevier B.V., All rights reserved.

PY - 2005/4

Y1 - 2005/4

N2 - This paper is an introduction to the present special issue dedicated to scientific research using data collected as part of the Global Entrepreneurship Monitor (GEM) and considering new venture creation as the hallmark of entrepreneurship. After a short description of GEM's theoretical and methodological background, this introduction highlights the main results of seven papers which were presented at the First GEM Research Conference in Berlin from 1 to 3 April 2004. First, there is empirical evidence that the role of entrepreneurial activity differs across the stages of economic development, in that there appears to be a U-shaped relationship between the level of development and the rate of entrepreneurship. Consequently, a positive effect of entrepreneurial activity on economic growth is found for highly developed countries but a negative effect for developing nations. Second, it is shown that different types of entrepreneurship may have a different impact on a nation's innovativeness and economic growth rate. In particular, potentially high-growth business start-ups and so-called opportunity entrepreneurship enhance knowledge spillovers and economic growth. Third, entrepreneurship is again shown to be a regional event that can only be understood if regional framework conditions, including networks and regional policies, are taken into consideration.

AB - This paper is an introduction to the present special issue dedicated to scientific research using data collected as part of the Global Entrepreneurship Monitor (GEM) and considering new venture creation as the hallmark of entrepreneurship. After a short description of GEM's theoretical and methodological background, this introduction highlights the main results of seven papers which were presented at the First GEM Research Conference in Berlin from 1 to 3 April 2004. First, there is empirical evidence that the role of entrepreneurial activity differs across the stages of economic development, in that there appears to be a U-shaped relationship between the level of development and the rate of entrepreneurship. Consequently, a positive effect of entrepreneurial activity on economic growth is found for highly developed countries but a negative effect for developing nations. Second, it is shown that different types of entrepreneurship may have a different impact on a nation's innovativeness and economic growth rate. In particular, potentially high-growth business start-ups and so-called opportunity entrepreneurship enhance knowledge spillovers and economic growth. Third, entrepreneurship is again shown to be a regional event that can only be understood if regional framework conditions, including networks and regional policies, are taken into consideration.

UR - http://www.scopus.com/inward/record.url?scp=17444404228&partnerID=8YFLogxK

U2 - 10.1007/s11187-005-1974-z

DO - 10.1007/s11187-005-1974-z

M3 - Article

AN - SCOPUS:17444404228

VL - 24

SP - 193

EP - 203

JO - Small business economics

JF - Small business economics

SN - 0921-898X

IS - 3

ER -