The New Venture Decision: An Analysis Based on the GEM Project Database

Abstract

The new venture decision is a crucial stage in the process of creating a new business and is influenced by a series of social, demographic, cultural and economic factors, amongst others. These factors have been the subject of several studies, though there is still no widely accepted agreement on exactly how they affect the decision to create a new enterprise. This study will provide evidence on which variables affect the new venture decision, as well as the extent of their influence based on the analysis of a sample of 7524 cases, using information obtained via the Global Entrepreneurship Monitor 2001 Project. At the same time, we provide evidence to show that there are differences in the way these variables affect new ventures born out of need or out of opportunity.

Human and social capital as drivers of entrepreneurship

“…As a result, it has been shown that the perception that an individual has about having the skills required for a new venture is relevant for making the decision to engage in a business start-up. The empirical study proves that someone who thinks they have the skills required to manage a new venture would be more likely to become an entrepreneur (Morales & Roig, 2005;De Clercq & Arenius, 2006;Davidsson & Honig, 2003;Autio & Wennberg, 2010).…”

“…It has been confirmed that knowledge of an employer has a positive relationship that is statistically significant to influence on the likelihood to engage in entrepreneurial activities (Klyver, Hindle & Meyer, 2008;Arenius & Kovalainen, 2006;Morales & Roig, 2005). Accordingly, social capital is considered an independent variable.…”

“…As a result, human capital plays a significant role in economic activities. Previous studies have shown the role of human capital to be an engine for entrepreneurship (Morales & Roig, 2005;De Clercq & Arenius, 2006;Davidsson & Honig, 2003, Autio & Wennberg, 2010.…”

“…For this reason, the importance of a type of knowledge about other knowledge has been discussed (De Clercq & Arenius, 2006;Morales & Roig, 2005). Through the statistics of an empirical study, there were found significant differences in social networks between entrepreneurs and non-entrepreneurs (Klyver & Hindle, 2007;Lamine 2017).…”

Desire of a Managerial Position and Entrepreneurial Motivation: The Influence of Gender and School Type in the Canary Islands Young People

“…Recently models of intention that focus on attitudes have been proposed as a likely explanation for the entrepreneurial process. [34][35][36][37]. Those authors have viewed entrepreneurial decisions as a process; in this way Shapero expresses that "willingness to" act is another indispensable element in the process of the new venture decision, because, if the individual is not predisposed to this type of challenge, they will not be likely to act [36].…”