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2010 | OriginalPaper | Chapter

14. Postmaterialism Influencing Total Entrepreneurial Activity Across Nations

Authors : Lorraine Uhlaner, Roy Thurik

Published in: Entrepreneurship and Culture

Publisher: Springer Berlin Heidelberg

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Abstract

The relative stability of differences in entrepreneurial activity across countries suggests that other than economic factors are at play. The objective of this paper is to explore how postmaterialism may explain these differences. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total entrepreneurial activity, as defined within the Global Entrepreneurship Monitor (GEM). The model is also tested for the rate of established businesses. The measure for postmaterialism is based upon Inglehart’s four-item postmaterialism index. A set of economic, demographic and social factors is included to investigate the independent role postmaterialism plays in predicting entrepreneurial activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries (GEM, World Values Survey and other sources) are used to test the hypotheses. Findings confirm the significance of postmaterialism in predicting total entrepreneurial activity and more particularly, new business formation rates.

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previous chapter Uncertainty Avoidance and the Rate of Business Ownership Across 21 OECD Countries, 1976–2004

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In an earlier study, Uhlaner et al. (2002) examine the influence of postmaterialism on self-employment rate on a set of 14 OECD countries, finding a negative effect between the two variables.

Verheul et al. (2002) describe a general framework which elaborates upon push and pull factors as determinants of entrepreneurship.

For example, Van Uxem and Bais (1996) find that 50% of almost 2,000 new Dutch entrepreneurs mention dissatisfaction with their previous job among their motives to start for themselves.

For more detailed discussion of the outgroup concept and its implications, see, for instance, Mackie et al. (1992) and Baron and Kerr (2003).

Self-employed people here refer to people who have moved beyond the nascent entrepreneurship stage.

See also Grilo and Thurik (2005a, b) and Parker (2004).

Squared terms for postmaterialism and life satisfaction are also included in certain regression analyses, but again, no evidence was found to support a hypothesis of curvilinear effects.

An earlier version of the paper (Uhlaner and Thurik 2004) reports relationships between these variables and different cultural indices measured by Hofstede, including power distance, individualism, masculinity, and uncertainty avoidance. The Hofstede indices are also substituted for postmaterialism in a series of multiple regression analyses (Uhlaner and Thurik 2005).

In other analyses, not shown here, postmaterialism is a significant negative predictor of nascent entrepreneurship, but only in a regression model with life satisfaction as a positive predictor.

See detailed discussion of tests for mediating effects in Verheul et al. (2005).

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Title: Postmaterialism Influencing Total Entrepreneurial Activity Across Nations
Authors: Lorraine Uhlaner
Roy Thurik
Publisher: Springer Berlin Heidelberg
Book: Entrepreneurship and Culture
Print ISBN: 978-3-540-87909-1

Electronic ISBN: 978-3-540-87910-7

Copyright Year: 2010
DOI: https://doi.org/10.1007/978-3-540-87910-7_14