The Global Entrepreneurship Trend with Latent Growth Curve Approach: Lesson Learned From the Great Recession Recovery

Abstract

As hospitality industry has been traditionally characterized by a small- and medium sized enterprise, entrepreneurship is much essential and important in the industry. To make an understanding of what trend exists in the entrepreneurship development around the world, a Latent Growth Curve (LGC) model was employed. By considering three macroeconomic variables (GDP, unemployment rate, and population growth), this study could figure out the trend of the growth of entrepreneurship anticipated in the most recent longitudinal data from 2010 to 2014, which indicates recovery of global economy from the economic recession. Also, the result of a series of comparisons of LGC model indicated that the increase of global entrepreneurship seen over time in an unconditional LGC model is fueled by increased unemployment rate and larger population growth. These results give theoretical and practical foundation of the importance of entrepreneurship in the recovery of global economy from the global economic recession after COVID-19 pandemic.