Global Entrepreneurship Monitor (Gem)-2002 Executive Report

48 Pages Posted: 24 Nov 2009

See all articles by Michael Hay

Michael Hay

affiliation not provided to SSRN

Larry W. Cox

Pepperdine University - Graziadio School of Business and Management

Paul D. Reynolds

Florida International University, Eugenio Pino & Family Global Entrepreneurship Center

Erkko Autio

affiliation not provided to SSRN

William D. Bygrave

Babson College - Arthur M. Blank Center for Entrepreneurship

Date Written: 2002

Abstract

The 2002 Executive Report for the GlobalEntrepreneurship Monitor (GEM) estimates that more than 460 million adultsworldwide were engaged in entrepreneurial activity in 2002. This informationwas obtained from a survey of 37 countries that contain more than three-fifthsof the world population and 92 percent of the gross domestic product(GDP).This study aggregates the results of the 37 studies; individualreports for each country are also available. Three investigation methods are used in the series of national GEM studies:an adult population survey; interviews with entrepreneurship experts in eachcountry; and selected national and demographic data.The GEM modelexamines general framework conditions for economic growth and nineentrepreneurial framework conditions – financial support, government policy,government programs, education and training, research and development transfer,commercial and professional infrastructure, market openness, access to physicalinfrastructure and cultural and social norms. According to the findings, 286 million adults were active entrepreneurs in2002.The study provides information about: how the level ofentrepreneurship varies between countries; how the level of entrepreneurialactivity changes over time; why people become entrepreneurs; who theentrepreneurs are; what types of businesses are created; what the relationshipis between entrepreneurship and economic growth; how national experts assessthe entrepreneurial climate in their countries; and the importance of venturecapital and informal finance. Several conclusions and policy implications are drawn. It has been foundthat the national level of entrepreneurial activity reflects the generalmacroeconomic conditions; only 7 percent of startup efforts are likely toexpand the range of goods and services by creating new sectors or marketniches; and high potential new firms comprise a small proportion of startupactivity, being more prevalent in R&D-rich countries. National economicgrowth is associated with heightened levels of entrepreneurship; andentrepreneur-friendly cultural and social norms, government policies, andeducation and training are major strengths for most GEM countries. Womenparticipate in entrepreneurial activities at about half the rate of men; andinformal financial support for startups is five times that of domestic venturecapital support among the 37 GEM 2002 countries. Most of the businesses in theworld are either owned by a single family group or by an individual with strongfamily connections, and this is also true for startups.(CBS)

Keywords: Entrepreneurial activity, Industry sectors, Educational attainment, Business conditions, Early stage financing, Gender, Entrepreneurial environment, National differences, Startups, Public policies, Economic growth, Finance, Individual traits, Entrepreneurship education, Job creation, Males, R&D, Technology transfer, Angel investors, Age groups, Females, Venture capital, Policy analysis, Motivation, Demographics, Cultural attitudes, Family firms

Suggested Citation

Hay, Michael and Cox, Larry W. and Reynolds, Paul D. and Autio, Erkko and Bygrave, William D., Global Entrepreneurship Monitor (Gem)-2002 Executive Report (2002). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. Available at SSRN: https://ssrn.com/abstract=1509260

Michael Hay

affiliation not provided to SSRN

Larry W. Cox

Pepperdine University - Graziadio School of Business and Management ( email )

Malibu, CA
United States

Paul D. Reynolds

Florida International University, Eugenio Pino & Family Global Entrepreneurship Center ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

Erkko Autio

affiliation not provided to SSRN

William D. Bygrave

Babson College - Arthur M. Blank Center for Entrepreneurship ( email )

231 Forest Street
Babson Park, MA 02457-0310
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
262
Abstract Views
1,766
rank
115,000
PlumX Metrics