Three major international research projects that track data on
global institutions in most countries do not track the firm
formation process and do not correlate with measures of the firm
formation process. For example, the self employment rate published
by the OECD correlates negatively with the Global Competitiveness
Index, the Index of Economic Freedom and the Ease of Doing
Business. What does this negative relationship mean? Does less
economic freedom mean more entrepreneurship? What about the
difficulty of starting a business? The Global Entrepreneurship
Index (GEINDEX) addresses this paradox in the economic development
literature. Building on previous measures of entrepreneurship, the
authors define the basic requirements for construction of an
entrepreneurship index. The index should be sufficiently complex to
capture the multidimensional feature of entrepreneurship. There
should be indicators referring to quality-related differences. The
index should incorporate individual level as well as institutional
variables. The Global Entrepreneurship Index contributes to our
understanding of economic development by constructing an index
(GEINDEX) that examines the essence of the contextual features of
entrepreneurship and fills a gap in the measure of development. The
authors develop a Global Entrepreneurship Index that offers a
measure of the quality and quantity of the business formation
process in 65 of the most important countries in the world. The
GEINDEX captures the contextual feature of entrepreneurship by
focusing on entrepreneurial attitudes, entrepreneurial activity and
entrepreneurial aspirations.
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