Explaining Entrepreneurship: Preliminary Entry 97

The rate of entrepreneurship, however defined, differs across countries and over time. As entrepreneurship is widely considered to be vital for innovation and economic growth, it is important to know more about the causes of this variety. This book investigates the rate of entrepreneurship at the country level, presenting evidence that refutes some commonly-held assumptions, such as the belief that as countries become richer (and per capita income increases), the rate of new business establishment slows. First, an exploratory analysis highlights some major meanings and manifestations of entrepreneurship. Second, the book develops a multidisciplinary framework for explaining the rate of entrepreneurship at country level. Based upon several strands of literature, this framework is built around an occupational choice model while linking the individual, the firm, and aggregate levels. Technological, economic, demographic, cultural and institutional factors are explored. Third, the book reports on empirical investigations demonstrating that demographic variables (such as population growth), cultural values (such as uncertainty avoidance), and institutional arrangements (such as the unemployment replacement rate) directly affect the rate of entrepreneurship growth, and explores the conditions under which.entrepreneurship either flourishes or stagnates. Drawing from evidence around the world, the author demonstrates that some countries are indeed more entrepreneurial than others, and concludes with a discussion of implications for further research, policymaking, and business practice.