Exploring Personal and Contextual Variables of the Global Entrepreneurship Monitor through the Rasch Mathematical Model

Abstract

This article studies the variables of entrepreneurship at the regional (countries) level proposed by the Global Entrepreneurship Monitor (GEM) in its periodic global reports. This response to the suggestions and concerns of various authors is related to the need to analyze the theoretical foundation of the variables used by GEM. The validity and reliability of GEM data for the scientific study of entrepreneurship are also analyzed. Finally, the potential of GEM data to manage entrepreneurship variables at the country level is studied. Data from the GEM global report and the fifty countries for which data are available on all variables are used in the study. The methodology used is the Rasch mathematical model, a valuable alternative to the Classical Theory of the Test. The results confirm the theoretical validity of GEM data, its validity and reliability for the development of scientific studies, and its potential for managing entrepreneurship variables at the country level. Both the methodology used and the conclusions obtained constitute novel contributions to this field.

Predicting the Entrepreneurial Behaviour of Starting Up a New Company: A Regional Study Using PLS-SEM and Data from the Global Entrepreneurship Monitor

“…It is accepted in the literature on entrepreneurship at the regional level that entrepreneurs are the critical element in the process of creating a new venture. This is why entrepreneurship requires entrepreneurial behaviour (intention and action) [1,2,30]. In turn, it has been found that entrepreneurial behaviour depends on contextual variables and personal variables, the latter having been more studied [37,38].…”

“…It is mainly due to the small number of variables they incorporate [69,70]. On the other hand, the authors of predictive behavioural studies need quality traditional data sources for a wide range of variables and countries [30]. In order to respond to these demands, several authors suggest enriching predictive models by incorporating new variables and new relationships, as well as variables that, together with intention, reflect effective entrepreneurial behaviour [71].…”

“…Despite their equal importance, in GEM reports, contextual variables can influence personal variables, although GEM does not specify the nature of this relationship [28,77]. Moreover, as mentioned above, in GEM reports, entrepreneurial intention is just another personal variable [5,30]. The contextual variables are considered an essential part of business creation and directly influence entrepreneurial opportunities, competencies, and preferences.…”

“…The contextual variables are considered an essential part of business creation and directly influence entrepreneurial opportunities, competencies, and preferences. The source of information on these variables is the National Experts Survey, a standard GEM methodology to capture expert judgments to evaluate regional variables [5,30]. Regarding their measurement, the values of the contextual variables represent the average scalar data per country that come from the responses of entrepreneurship experts to specially designed questionnaires.…”

“…This is because entrepreneurial behaviour is conceived as a combination of intention and action [1,2]. Finally, because researchers have difficulties in accessing quality global and periodic regional data when conducting their studies, the literature calls for the need to use trusted institutional sources specialized in obtaining such data [30].…”