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Small Business Economics

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01.04.2014

Religious institutions and entrepreneurship

verfasst von: Yaron Zelekha, Gil Avnimelech, Eyal Sharabi

Erschienen in: Small Business Economics | Ausgabe 4/2014

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Abstract

This article focuses on the impact of religious institutions on entrepreneurship. We find clear evidence that different religious institutions have a significantly different impact on the tendency to become an entrepreneur. Our article makes important contributions to the research of both religion and entrepreneurship. First, it proposes empirical evidence in which the country’s main religion significantly affects its level of entrepreneurship at the macro level. Second, it adds to our theoretical understanding of the mechanisms that characterize the effects of religion on entrepreneurship. We suggest that macro effects of religion as part of the country’s culture and institutions affect the country’s level of entrepreneurship beyond the direct effects of religion on the behavior of the religion’s members in the society.

Vorheriger Artikel University choice and entrepreneurship

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Our working process definition of entrepreneurial activity in this study is "the creation of new venture in the mid- and high-technology sectors." This definition is quite similar to the GEDI index definition of entrepreneurial activity, which is "startup activity in the mid- and high-technology sectors, initiated by educated entrepreneurs and launched because of opportunity motivation" (Szerb and Acs 2011).

Botticini and Eckstein (2005, 2007) emphasized the transformation in the Jewish religion about the year 70 AD toward understanding the Torah. Each Jew was responsible for teaching his sons to read and understand Jewish rules. By this fact, Jews gained a competitive advantage in the form of human capital.

Bosma et al. (2009) suggests that it is certainly not the case that higher TEA rates are always to be preferred. In developing economies, for example, a reduction in the TEA rate may be seen as a good sign because it may signal a decline in the rate of necessity entrepreneurship due to increased job opportunities, while in developed economies, a growth in the TEA rate is often seen as a good signal.

LinkedIn is used by its members to expand and manage their professional networks; thus, it is mainly used in positions in which business networks are important, such as in high level managerial and entrepreneurial positions.

They found that LinkedIn captured at least 70 % of the past and present entrepreneurs in the TREE database and almost all currently active entrepreneurs.

The GEM data are known for their limitations (one of them is a bias toward necessity entrepreneurship). Therefore, we tested the correlation between the number of founders in each country according to LinkedIn data and the GEM Index of opportunity entrepreneurs.

According to the US Census Bureau (2012) the world population age distribution is the following: less than 18: 30.3 %; 18–24: 12.8 %; 25–34: 15.5 %; 34–44: 13.8 %; 45–54: 11.3 %; 55–64: 8.3 %; over 65: 8.0 % (average age, 31.5). According to GEM 2004, the distribution of entrepreneurs' age (age when establishing the firm) is the following: less than 18: not included in the sample; 18–24: 12.0 %; 25–34: 32.3 %; 34–44: 30.6 %; 45–54: 17.4 %; 55–64: 6.7 %; over 65: 10.0 % (average age, 44). According to Google's ad planner (see the following exhibit), the distribution of age of LinkedIn (2011) members is the following: less than 18: 1 %; 18–24: 5 %; 25–34: 15 %; 35–44: 32 %; 45–54: 30 %; 55–64: 13 %; over 65: 4 % (average age, 43.5).

For example, while the legal worldwide gambling industry annual revenues are approximately $335 billion (H2 Gambling Capital 2010), there are only 323 founders from the gambling industry worldwide in LinkedIn. Similarly, there are zero founders related to the pornography industry (annual revenues of approximately $100 billion) in LinkedIn. On the other hand, there are 1,874 founders in LinkedIn related to the e-learning industry, which has an annual turnover of less than $30 billion.

In order to prevent strong correlations within the two sets of religion variables, following a step-wise process, we left only the variable that had the more significant impact.

In this regard, it should be stressed that the TI index is the most frequently used and constructed by standardizing and equally weighting values from numerous other indicators including ICRG and the level of the economy openness and competitiveness (as measured by the level of foreign trade to product or the index of economic freedom published by the Fraser Institute).

Other variables that describe HC level were also significant but had lower levels of fitness.

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Titel: Religious institutions and entrepreneurship
verfasst von: Yaron Zelekha
Gil Avnimelech
Eyal Sharabi
Publikationsdatum: 01.04.2014
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 4/2014
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-013-9496-6

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