By Jens Iversen, Rasmus Jrgensen, Nicholaj Malchow-Mller
Defining and Measuring Entrepreneurship studies the most typical recommendations of entrepreneurship from the theoretical economics literature, opting for universal parts and pointing to special alterations. the aim is to check those theoretical principles of entrepreneurship with the measures utilized in empirical country-level reports. when you consider that a coherent or unifying definition of entrepreneurship has now not emerged, the authors clarify that it is very important be specified in regards to the courting among the various theoretical features of entrepreneurship and the empirical measures. this is often published through evaluating entrepreneurial task throughout OECD nations utilizing measures that mirror various theoretical elements. in keeping with a number of information resources, the relative score of nations is especially delicate to the empirical degree used.
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Extra info for Defining and Measuring Entrepreneurship (Foundations and Trends in Entrepreneurship)
Germany and the United Kingdom. However, an important observation is that Greece and the United Kingdom have comparable levels of entrepreneurial activity when the self-employed transition measures are computed using the labor force as the denominator. The stock-based measures in columns 1–5 also show much within variation with respect to the ranking. Examples include Belgium, Portugal, Germany, and Sweden. Most of this within variation can be attributed to differences between the high-skilled self-employment rates (columns 4 and 5) and the overall self-employment rates in columns 1–3.
Self-employment and firm entry and exit rates are used frequently in the literature and with the current data available this is probably as far as we can go. To illustrate that the distinction between the different empirical measures matters empirically, we have tried to compare entrepreneurial activity across the OECD countries using the different measures. 1 sums up this information by comparing the cross-country rankings according to the different measures. 1 still leads to a number of interesting observations.
Moreover, it is interesting to note that some of the most entrepreneurial countries according to the overall self-employment rate, Greece and Portugal, have a larger discrepancy between the self-employment rates in the two types of sectors than most other countries. 3 The Business Ownership Rate As argued above, the self-employment rate is an imperfect measure of business owners as it may not include owners of incorporated businesses. The amount of Knightian entrepreneurship may therefore be underestimated by the self-employment rate.
Defining and Measuring Entrepreneurship (Foundations and Trends in Entrepreneurship) by Jens Iversen, Rasmus Jrgensen, Nicholaj Malchow-Mller