Solution Manual For Business
Pamela Schindler 14th Editi
, >cases
A GEM of a Study
>Abstract
In periods of economic downturn, government leaders try to stimulate entrepreneurship
activity. Project directors of the Global Entrepreneurship Monitor, partnered with the
Kauffman Center for Entrepreneurial Leadership of Ewing Marion Kauffman Foundation, the
London School of Business and Babson College,designed a research study to add insight to
what activities would be most likely to stimulate entreprenship activities.
>The Scenario
What government policies and initiatives are most likely to generate high levels of
entrepreneurial activity? Which are positively correlated with the economic well-being
of a country as measured by growth in GDP and job formation? Project directors of the
Global Entrepreneurship Monitor (GEM), who define entrepreneurship as “any attempt
at new business or new venture creation, such as self-employment, a new business organi-
zation, or the expansion of an existing business, by an individual, a team of individuals,
or an established business,” suggest the following:
• Promoting entrepreneurship, especially outside the most active age group (25–
44), with specific programs that support entrepreneurial activity.
• Facilitating the availability of resources to women to participate in the entre-
preneurial process.
• Committing to long-term, substantial postsecondary education, including
training programs designed to develop skills required to start a business.
• Emphasis on developing an individual’s capacity to recognize and pursue new
opportunities.
• Developing the capacity of a society to accommodate the higher levels of
income disparity associated with entrepreneurial activity.
• Creating a culture that validates and promotes entrepreneurship throughout
society.
Researchers at the Kauffman Center for Entrepreneurial Leadership (Babson College)
and the London Business School revealed these propositions based on a study
designed to prove a causal relationship between factors that affect entrepreneurial
opportunities and potential, to business dynamics and national economic growth and
well-being.
>The Research
The research design compensated for lack of control of extraneous variables
by using data from 10 nations “with diversity in framework conditions, entrepreneurial
sectors, business dynamics, and economic growth.” The longitudinal study
proposed to prove or disprove a new conceptual model of cultural, economic, physical,
and political factors to predict economic growth (Exhibit C-GEM 1–1).
Business Research Methods, 14e/Schindler
1
,EXHIBIT C-GEM 1–1 Conceptual Model: The Entrepreneurial Sector and Economic Growth
General National
Framework
Conditions
• Openness
Entrepreneurial Business
• Government Opportunities Dynamics
• Financial markets • Existence (firms, jobs)
• Technology, R & D • Perception
• Infrastructure • Births
• Management (skills) • Expansion
• Labor markets • Deaths Economic
• Institutions • Contraction Growth
(GDP, jobs)
Social,
Cultural,
Political
Context
Entrepreneurial Entrepreneurial
Framework Capacity
Conditions • Skills
• Financial • Motivation
• Government policies
• Government programs
• Education & training
• R & D transfer
• Commercial, legal
infrastructure
• Internal market openness
• Access to physical
infrastructure
• Cultural, social norms
704
, EXHIBIT C-GEM 1–2 Entrepreneurial Framework Conditions: Cross-National Comparisons of Key Informant
Multi-Item Indexes
Favorable
Neutral
Unfavorable
Culture Equity Debt R&D Education Subcontractor Legal, Banking
U.S. 0.8 1.23 0.44 0.21 –0.46 0.8 0.88
Canada 0.15 0.55 0 –0.12 –0.28 0.22 0.86
Israel 0.34 –0.06 –0.97 0.29 –0.26 0.04 0.67
U.K. –0.07 0.17 –0.03 –0.02 –0.97 0.08 0.57
Germany –0.2 –0.22 –0.21 0.03 –1.24 0.15 0.29
Denmark –0.09 –0.3 –0.56 –0.12 –0.52 0.39 0.33
France –0.92 –1.01 –0.81 –0.23 –1.21 –0.1 –0.49
Japan –0.65 0.29 –0.52 –0.39 –1.06 –0.68 –0.61
Finland –0.36 –0.94 –0.33 –0.1 –0.94 –0.22 1.03
Correlation to 0.87 0.79 0.58 0.69 0.65 0.71 0.55
Start-Up Rate
Pamela Schindler 14th Editi
, >cases
A GEM of a Study
>Abstract
In periods of economic downturn, government leaders try to stimulate entrepreneurship
activity. Project directors of the Global Entrepreneurship Monitor, partnered with the
Kauffman Center for Entrepreneurial Leadership of Ewing Marion Kauffman Foundation, the
London School of Business and Babson College,designed a research study to add insight to
what activities would be most likely to stimulate entreprenship activities.
>The Scenario
What government policies and initiatives are most likely to generate high levels of
entrepreneurial activity? Which are positively correlated with the economic well-being
of a country as measured by growth in GDP and job formation? Project directors of the
Global Entrepreneurship Monitor (GEM), who define entrepreneurship as “any attempt
at new business or new venture creation, such as self-employment, a new business organi-
zation, or the expansion of an existing business, by an individual, a team of individuals,
or an established business,” suggest the following:
• Promoting entrepreneurship, especially outside the most active age group (25–
44), with specific programs that support entrepreneurial activity.
• Facilitating the availability of resources to women to participate in the entre-
preneurial process.
• Committing to long-term, substantial postsecondary education, including
training programs designed to develop skills required to start a business.
• Emphasis on developing an individual’s capacity to recognize and pursue new
opportunities.
• Developing the capacity of a society to accommodate the higher levels of
income disparity associated with entrepreneurial activity.
• Creating a culture that validates and promotes entrepreneurship throughout
society.
Researchers at the Kauffman Center for Entrepreneurial Leadership (Babson College)
and the London Business School revealed these propositions based on a study
designed to prove a causal relationship between factors that affect entrepreneurial
opportunities and potential, to business dynamics and national economic growth and
well-being.
>The Research
The research design compensated for lack of control of extraneous variables
by using data from 10 nations “with diversity in framework conditions, entrepreneurial
sectors, business dynamics, and economic growth.” The longitudinal study
proposed to prove or disprove a new conceptual model of cultural, economic, physical,
and political factors to predict economic growth (Exhibit C-GEM 1–1).
Business Research Methods, 14e/Schindler
1
,EXHIBIT C-GEM 1–1 Conceptual Model: The Entrepreneurial Sector and Economic Growth
General National
Framework
Conditions
• Openness
Entrepreneurial Business
• Government Opportunities Dynamics
• Financial markets • Existence (firms, jobs)
• Technology, R & D • Perception
• Infrastructure • Births
• Management (skills) • Expansion
• Labor markets • Deaths Economic
• Institutions • Contraction Growth
(GDP, jobs)
Social,
Cultural,
Political
Context
Entrepreneurial Entrepreneurial
Framework Capacity
Conditions • Skills
• Financial • Motivation
• Government policies
• Government programs
• Education & training
• R & D transfer
• Commercial, legal
infrastructure
• Internal market openness
• Access to physical
infrastructure
• Cultural, social norms
704
, EXHIBIT C-GEM 1–2 Entrepreneurial Framework Conditions: Cross-National Comparisons of Key Informant
Multi-Item Indexes
Favorable
Neutral
Unfavorable
Culture Equity Debt R&D Education Subcontractor Legal, Banking
U.S. 0.8 1.23 0.44 0.21 –0.46 0.8 0.88
Canada 0.15 0.55 0 –0.12 –0.28 0.22 0.86
Israel 0.34 –0.06 –0.97 0.29 –0.26 0.04 0.67
U.K. –0.07 0.17 –0.03 –0.02 –0.97 0.08 0.57
Germany –0.2 –0.22 –0.21 0.03 –1.24 0.15 0.29
Denmark –0.09 –0.3 –0.56 –0.12 –0.52 0.39 0.33
France –0.92 –1.01 –0.81 –0.23 –1.21 –0.1 –0.49
Japan –0.65 0.29 –0.52 –0.39 –1.06 –0.68 –0.61
Finland –0.36 –0.94 –0.33 –0.1 –0.94 –0.22 1.03
Correlation to 0.87 0.79 0.58 0.69 0.65 0.71 0.55
Start-Up Rate
