27 February 2018
Netherlands ranks 10th on GEM's Entrepreneurship Spirit Index
This new index is based on a combination of three yes/no questions related to entrepreneurial awareness, opportunity perception, and entrepreneurial self-efficacy and is comparable across countries using data from the GEM APS.
- Whether the respondent knows someone who has started a business in the past year (entrepreneurial awareness)
- Whether the respondent thinks there are good opportunities for starting a business in their local area (entrepreneurial opportunity perception)
- Whether the respondent thinks they have the knowledge an G skills, to start a business (entrepreneurial self-efficacy)
Aiming to extract one measure that captures as much of the variance in response to these questions as possible, a principal component analysis is applied on collected GEM APS data across the total 2017 unweighted sample of 18–64 year-old adults for the 54 countries. Using this approach, it was determined that 50% of the variance in individual responses for all GEM countries across these three questions can be captured in one Bartlett method measure using principal component analysis and this measure is used as the index. When ranked from highest to lowest, the five top-ranked countries in the index are all effi ciency-driven countries, and four of the five lowest-ranked countries are innovation-driven countries. However, three of the top 10 countries are innovation-driven and four of the bottom 10 countries are effiency-driven. Three of the four factor-driven countries have positive values in the index. Thus, countries with a high and low entrepreneurial spirit may belong to any of the stages of economic development. Clustering countries according to economic development stages demonstrates the dominance of entrepreneurial spirit among efficiency-driven economies.
Countries in a descending order of GESI:
1. Saudi Arabia
7. United Arab Emirates
Further testing of GESI and derivatives are planned in the future.