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The creation of new ventures involves a great deal of risk and uncertainty. However, research has been theoretically divergent and empirically inconclusive about the influence of individuals' risk tolerance on entrepreneurial entry. In this paper, we argue that this relationship is contingent on the reference point of individuals, taking into account the human capital and the opportunity cost of individuals when they decide to start a venture. This approach allows us to clarify some of the previous mixed results in the literature. We use a sample of almost 600,000 individuals from 90 countries that have participated in the Global Entrepreneurship Monitor project between 2010 and 2014. Our results show that individuals with previous experience as entrepreneurs do not need to be so risk-tolerant to set up their own venture, while individuals with a job and/or a high educational level need to be especially risk-tolerant to become entrepreneurs. [ABSTRACT FROM AUTHOR]

This paper analyzes opportunity entrepreneurship through the interplay between formal and informal institutions. It seems evident that not all entrepreneurial initiatives have the same quality, thus the goal of a society should be to encourage the activities that best contribute to innovation and value generation. We theorize that informal institutions are contingent to the formal institutional environment where the new ventures operate. Our empirical results, using GEM data, confirm that, in countries with a more individualistic orientation, the relationship between formal institutions and opportunity entrepreneurship is more intense, as happens in societies with lower levels of uncertainty avoidance. [ABSTRACT FROM AUTHOR]

Despite the benefits of entrepreneurial activity on economic development, entrepreneurs do not have a good social status in all societies. While in some countries they are highly respected (Anglo-Saxon context), in others, their image is not so positive (European context). In this paper, we highlight these differences using a sample from the GEM project and explain the social status of entrepreneurs using the cultural profile of countries, which is measured with the Schwartz database. Our results show that some cultural profiles favor entrepreneurs’ social status. [ABSTRACT FROM AUTHOR]

Despite the benefits of entrepreneurial activity on economic development, entrepreneurs do not have a good social status in all societies. While in some countries they are highly respected (Anglo-Saxon context), in others, their image is not so positive (European context). In this paper, we highlight these differences using a sample from the GEM project and explain the social status of entrepreneurs using the cultural profile of countries, which is measured with the Schwartz database. Our results show that some cultural profiles favor entrepreneurs’ social status. [ABSTRACT FROM AUTHOR]

The objective of this research is to deepen in the role played by formal institutions on the different types of entrepreneurship (opportunity and necessity) as well as in its relative importance. The institutions we analyze are property rights, business freedom, fiscal freedom, labor freedom, financial capital and educational capital. Our results show that, in general, opportunity entrepreneurship benefits from an improvement of these institutions, while necessity entrepreneurship is damaged. This will positively influence the relative presence of opportunity entrepreneurship that is usually considered to be of greater quality and is more clearly related to economic development in a country. [ABSTRACT FROM AUTHOR]

Entrepreneurial failure is a phenomenon at least as important as entrepreneurial success. However, both scholars and practitioners have devoted much more attention to the latter. This study focuses on failure by suggesting that to understand it, the institutional context and the quality of entrepreneurship need to be considered. In a sample of 69 countries during the period 2007-2012, we illustrate their entrepreneurial failure rates according to the development of the institutional context and the quality of entrepreneurship. Our descriptive results show that entrepreneurship failure is lower when institutions are well-developed and when the quality of entrepreneurship is higher. More interestingly, the lowest rates of business failure are found when both dimensions –institutions and quality– point to the same direction. [ABSTRACT FROM AUTHOR]

Entrepreneurs play a key role to introduce innovations in the market. However, high differences among them arose, with only a few firms being responsible of introducing most of new products and services. This research characterizes the entrepreneurs with a higher propensity to innovate. With this purpose, we use a sample of 65,000 entrepreneurs from 88 countries that have participated in the GEM project between 2008 and 2012. Our results show that, from a psychological view, the most important variables are risk tolerance, entrepreneurial alertness and confidence in one's skills. Related to human capital, education and previous experience play a key role. As a consequence, public policies oriented toward improving innovation should pay especial attention to these variables. [ABSTRACT FROM AUTHOR]