Using a large sample of individuals in 28 countries, we investigate what variables are significantly correlated with an individual’s decision to become an entrepreneur. Following existing literature in economics, we link such a decision to demographic and economic characteristics. In addition, we argue that perceptual variables such as alertness to opportunities, fear of failure, and confidence about one’s own skills are also important. Our results suggest that perceptual variables are significantly correlated with new business creation across all countries in our sample and across gender. Although our data do not allow the identification of causal relationships, our findings suggest that, when making decisions, nascent entrepreneurs rely significantly on subjective and often biased perceptions rather than on objective expectations of success. Thus, perceptual variables should be included in economic models of entrepreneurial behavior. Copyright Springer 2005Entrepreneurship, nascent entrepreneurship, perceptual variables,

This paper argues that individuals differ in terms of their perception of opportunities because of the differences between the networks they are embedded in. We focus on two aspects of individuals’ embeddedness in networks, that is, (1) individuals’ belonging to residential areas that are more or less likely to be characterized by network cohesion, and (2) individuals’ differential access to network contacts based on the level of human capital they hold. Our analyses show that the nature of one’s residential area influences the perception of entrepreneurial opportunities. Further, we find a positive effect for education, i.e., people with a higher educational level are more likely to perceive entrepreneurial opportunities compared to those with a lower educational level. Copyright Springer 2005entrepreneurship, networks, opportunity recognition,

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Drawing on the literature on knowledge and self-efficacy, we examine the effects of individuals’ possession of and exposure to knowledge on the likelihood to engage in business start-up activity. Our analyses are based on data collected for the 2002 Global Entrepreneurship Monitor. More specifically, we analysed data from individuals located in Belgium and Finland in terms of their education and skills, and their contacts with the entrepreneurial community. Our findings suggest that knowledge-based factors indeed have a strong impact on the decision to engage in business start-up activity. We also found cross-country differences for these knowledge-based effects, in particular as regards the growth-orientation of business start-up activity. We discuss our findings and provide directions for future research.

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