Where do they come from? Prevalence and characteristics of nascent entrepreneurs

Where do they come from? Prevalence and characteristics of nascent entrepreneurs

2000 | Delmar, F. & P. Davidsson
This article presents a study of nascent entrepreneurs, focusing on their prevalence and characteristics in Sweden, Norway, and the USA. The study uses a large, random sample of individuals trying to start a business before the commercial launch of their ventures. The primary objectives are to compare the involvement of the Swedish population in the small business sector with estimates from Norway and the USA, and to analyze the characteristics of nascent entrepreneurs relative to a control group of people not trying to start a business. Key findings include: 1. **Prevalence Rates**: Sweden had a significantly lower prevalence rate of nascent entrepreneurs (2.0%) compared to Norway (3.1%) and the USA (3.8%). The differences are attributed to institutional factors such as the size and composition of the private sector, tax policies, and wage structures. 2. **Characteristics of Nascent Entrepreneurs**: Nascent entrepreneurs were more likely to be male, younger, have self-employed parents, and have a positive perception of self-employment. They also tended to have higher education levels and more management experience. However, marital status, number of children, and length of employment experience did not significantly differentiate between nascent entrepreneurs and the control group. 3. **Multivariate Analysis**: Logistic regression and CHAID techniques were used to identify the most significant variables predicting nascent entrepreneur status. Sex was the strongest predictor, with men being significantly more likely to be nascent entrepreneurs than women. The study also found interaction effects among variables, particularly for women, where county tenure and employment status played a crucial role. The study highlights the importance of role models and the impact of social and economic factors on entrepreneurial behavior, providing valuable insights for policymakers and researchers.This article presents a study of nascent entrepreneurs, focusing on their prevalence and characteristics in Sweden, Norway, and the USA. The study uses a large, random sample of individuals trying to start a business before the commercial launch of their ventures. The primary objectives are to compare the involvement of the Swedish population in the small business sector with estimates from Norway and the USA, and to analyze the characteristics of nascent entrepreneurs relative to a control group of people not trying to start a business. Key findings include: 1. **Prevalence Rates**: Sweden had a significantly lower prevalence rate of nascent entrepreneurs (2.0%) compared to Norway (3.1%) and the USA (3.8%). The differences are attributed to institutional factors such as the size and composition of the private sector, tax policies, and wage structures. 2. **Characteristics of Nascent Entrepreneurs**: Nascent entrepreneurs were more likely to be male, younger, have self-employed parents, and have a positive perception of self-employment. They also tended to have higher education levels and more management experience. However, marital status, number of children, and length of employment experience did not significantly differentiate between nascent entrepreneurs and the control group. 3. **Multivariate Analysis**: Logistic regression and CHAID techniques were used to identify the most significant variables predicting nascent entrepreneur status. Sex was the strongest predictor, with men being significantly more likely to be nascent entrepreneurs than women. The study also found interaction effects among variables, particularly for women, where county tenure and employment status played a crucial role. The study highlights the importance of role models and the impact of social and economic factors on entrepreneurial behavior, providing valuable insights for policymakers and researchers.
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