Determinants of entrepreneurship using fuzzy set methods: Europe vs. non-Europe

ABSTRACT

This article uses fuzzy set qualitative methods, with Global Entrepreneurship Monitor 2014 data, to show differences in the entrepreneurial determinants between European developed countries and non-European developing countries. We first estimate baseline regression models and then develop fuzzy set qualitative comparative analysis to study the necessary and sufficient conditions of entrepreneurial activity. Results indicate that, while in Europe, the key determinants are education and technological equity; individuals in developing and nondeveloped countries tend to be, or become, entrepreneurs independently of the macroeconomic background.

KEYWORDS:

• Entrepreneurship
• fuzzy set methods
• fsQCA
• GEM data

JEL CLASSIFICATION:

• M13
• C65

Acknowledgements

This article was partially written while Raquel Ortega was Visiting Faculty at the Carroll School of Management of Boston College (United States), to which she would like to express her thanks for the hospitality and facilities provided. We are grateful for comments and suggestions from José Alberto Molina and Alicia Coduras. Any remaining errors are our exclusive responsibility.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ We have information of the following OECD countries: Germany, Australia, Austria, Belgium, Canada, Chile, Denmark, United States, Salvador, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Japan, Luxembourg, Mexico, Norway, Netherlands, Poland, Sweden, Switzerland and UK; and of the following non-OECD countries: Angola, Argentina, Belize, Bolivia, Bosnia, Botswana, Brazil, Burkina-Faso, Cameroon, China, Colombia, Costa Rica, Croatia, Ecuador, Filipinas, Georgia, Guatemala, India, Indonesia, Iran, Jamaica, Kazajistan, Kosovo, Lithuania, Malaysia, Panama, Peru, Puerto Rico, Qatar, Romania, Russia, Singapore, South Africa, Suriname, Thailand, Trinidad and Tobago, Uganda, Uruguay and Vietnam.

Additional information

Funding

We are grateful for the financial support provided by the Cátedra Emprender (Universidad de Zaragoza-Fundación Emprender en Aragón).