Entrepreneurial intentions and entrepreneurship in European countries

Abstract

Purpose This study aims to pursue better understanding and investigation of the factor that can have an impact on the level of entrepreneurial activity. To achieve this, statistical analysis was conducted. Indicators from 22 countries of the European Union were reunited to compare the differences between entrepreneurial intention and entrepreneurship. Design/methodology/approach To analyse entrepreneurial intentions in Europe, two databases of the Global Databases Entrepreneurship Monitor (GEM) were used, namely, “GEM NES Key Indicators 2007-2015” and “GEM APS Key Indicators 2001-2015”, available at www.gemconsortium.org/data/sets, considering only the data from 2015 and analysed with IBM SPSS Statistics tool. Each original database includes 60 countries, and this study is limited to an analysis of only countries of the European continent, resulting in a sample of 22 countries. Findings The major determinants of the entrepreneurial intention in the countries studied were: “perceived capacity”; “entrepreneurial intention” itself which will, in fact, influence the “rate of nascent entrepreneurship”; “governmental and political factors” in relation to the respective “financing for the entrepreneur”; and “basic education and training” in entrepreneurship which influences “research and development”. Research limitations/implications This study has few limitations because, as it refers to a European analysis, it would require a more generalized analysis of the factors, such as to include more and better indicators for the demographic, economic and institutional determinants of the entrepreneurial intentions and entrepreneurship in the European countries under study. For future research on the explanation of commercial activity, we must address the methodological problem of distinguishing the effect of business intentions from other determinants, as these also influence entrepreneurial attitudes. Despite the conceptual and empirical limitations, the conclusions of the study imply and provide several recommendations for the future policy of entrepreneurship in Europe. Practical implications In the past decades, entrepreneurship and entrepreneurial intentions have gained increasing attention from academics, governments and politicians around the world. It is seen as a critical factor for economic growth and development of a country, as it contributes to the solution of fundamental macroeconomic issues such as increased employment, development of competitiveness, innovation and the creation of economic and social values. Therefore, academics and researchers, governments and politicians are interested in identifying the differences and causes between countries that influence the level of entrepreneurship as a phenomenon associated with business activity in a country. Social implications Results reveal that some of the key determinants of entrepreneurial intention in the European countries are related to policy factors, like “governmental and political factors” and “basic education and training” in entrepreneurship. In this way, the study can help politicians elaborate the policies related to entrepreneurship, implying an increase in entrepreneurial intentions in a country and consequently implications for socio-economic development. Originality/value To achieve the originality of the study, two databases of the GEM of 2015 were used and duly adapted. In this way, the value of the article is very significant, as it is possible to group data from several countries, to test hypotheses and to arrive at very useful conclusions that may be of interest to policymakers at both the European and national levels. The adoption of adequate policies promotes and supports entrepreneurship in the context of the Europe 2020 Strategy, which is the European Union’s growth strategy.