Postmaterialism Influencing Total Entrepreneurial Activity Across Nations

24 Pages Posted: 23 Dec 2006

See all articles by Lorraine M. Uhlaner

Lorraine M. Uhlaner

EDHEC Business School

Roy Thurik

Montpellier Business School; Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC); Erasmus Research Institute of Management (ERIM); EIM Netherlands - Business and Policy Research; Tinbergen Institute

Date Written: November 28, 2006

Abstract

The relative stability of differences in entrepreneurial activity across countries suggests that other than economic factors are at play. The objective of this paper is to explore how postmaterialism may explain these differences. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total entrepreneurial activity, as defined within the Global Entrepreneurship Monitor (GEM). The model is also tested for the rate of established businesses. The measure for postmaterialism is based upon Inglehart’s four-item postmaterialism index. A set of economic, demographic and social factors is included to investigate the independent role postmaterialism plays in predicting entrepreneurial activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries (GEM, World Values Survey and other sources) are used to test the hypotheses. Findings confirm the significance of postmaterialism in predicting total entrepreneurial activity and more particularly, new business formation rates.

Keywords: Entrepreneurship, Comparative Analysis of Economies, Cultural Economics, Macro-economic Analyses of Economic Development, Self-employment

Suggested Citation

Uhlaner, Lorraine M. and Thurik, Roy, Postmaterialism Influencing Total Entrepreneurial Activity Across Nations (November 28, 2006). ERIM Report Series Reference No. ERS-2006-062-ORG. Available at SSRN: https://ssrn.com/abstract=949658

Lorraine M. Uhlaner (Contact Author)

EDHEC Business School ( email )

24 avenue Gustave Delory
Roubaix, 59057
France

Roy Thurik

Montpellier Business School

France

Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC) ( email )

3000 DR Rotterdam
Netherlands
+31 10 408 2232 (Phone)
+31 10 408 9146 (Fax)

HOME PAGE: http://www.thurik.com

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

EIM Netherlands - Business and Policy Research

Postbus 7001
2701 AA Zoetermeer
Netherlands
+31 79 341 3634 (Phone)
+31 79 331 3742 (Fax)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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