Assessing the entrepreneurship process: an application of the data envelopment analysis

Nezameddin Faghih (), Ebrahim Bonyadi () and Lida Sarreshtehdari ()
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Nezameddin Faghih: Shiraz University
Ebrahim Bonyadi: University of Tehran
Lida Sarreshtehdari: University of Tehran

Journal of Global Entrepreneurship Research, 2021, vol. 11, issue 1, 311-327

Abstract: Abstract Entrepreneurship, which is referred to as the most determinant factor in economic development, has been scrutinized throughout this study. Apart from the indisputable applicability of various statistical methods in the different fields of science, this paper attempts to find the roots of the inefficient steps of entrepreneurial activities using a nonparametric and linear model named data envelopment analysis (DEA). The present article tries to identify the distinct phases during the process of running a business from start to output(s). Following this objective, three basic and different steps were found in the process of launching a business. First is the step of converting from attitude to action. This step focuses on the efficiency of entrepreneurship when attitudes help people to become entrepreneurs. Second, this step includes all entrepreneurial activities which finally bring innovative products and services, generate jobs, provide conditions for exports, etc. Third, this step focuses on the effect of entrepreneurship on the gross domestic product (GDP) per capita, as a final output in the business market. To sum it all up, this paper used a new term named “entrepreneurship overall efficiency” to assess the efficiency of entrepreneurship attitude that focuses on the effect of entrepreneurial attitudes on the final output of an entrepreneurship system namely GDP per capita. The data used throughout this study is collected from the dataset gathered by Global Entrepreneurship Monitor (GEM) in the year 2018. As the most important outshot raised from this research, it is worth noting that the parallel assessment of all four computed stages during an entrepreneurship process will provide an idiosyncratic opportunity to researchers and policymakers to identify the obstacles in economic growth.

Keywords: Data envelopment analysis (DEA); Global entrepreneurship monitor (GEM); Entrepreneurship efficiency; Entrepreneurship individual attitude; Entrepreneurship ecosystem; Gross domestic product (GDP) per capita (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s40497-021-00289-8

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