A Global Entrepreneurship Efficiency Benchmarking and Comparison Study based on National Systems of Entrepreneurship and Early-Stage Business: A Data Envelopment Analysis Approach

Abstract

National Systems of Entrepreneurship is defined as a nation’s resource allocation structure leading to entrepreneurial behaviors. However, the existing indicators of national framework conditions may have limitations in comparing the entrepreneurial efficiency of countries. Based on institutional theory, this paper presents a model to examine the efficiency of entrepreneurial activities stemming from the given conditions of a country and find benchmarks based on data envelopment analysis by scrutinizing inputs and outputs with static efficiency, dynamic efficiency, and strategic quadrant analysis. For this purpose, the study utilizes the Global Entrepreneurship Monitor dataset from 2015 to 2020 for 24 countries and presents the research questions regarding the differences in global entrepreneurial efficiencies, the countries for benchmarking, and the implications for entrepreneurial activities. The research implications suggest that diversifying the views on entrepreneurial efficiency may be valuable, and policymakers may focus on institutional conditions and entrepreneurial efficiency regarding the activity of early-stage businesses.