The Factors Affecting Individuals' Choice To Be Entrepreneur: A Comparison Between Efficiency-Driven Economies and Innovation-Driven Economies

Abstract

The purpose of this study is to examine the influence of institutional (environmental) factors and personal (attitude, human capital) factors on the probability of becoming an entrepreneur. In particular, this study aims to make a comparison between different types of economies. The data for this study is derived from the 2011 Adult Population Survey (APS), the 2011 National Expert Survey (NES) of Global Entrepreneurship Monitor (GEM) and the World Bank Database, and covers 32 countries, including efficiency-driven economies and innovation-driven countries. This study applies hierarchical logistic regression and uses multilevel modeling for the cross-country, cross-individual dataset. The results reinforce the importance of environmental factors (regulative and normative), attitude factors, and human capital factors. The findings of this proposed study will contribute to the further analysis of the GEM database to understanding the diversity of nascent entrepreneurial activities in different contexts.