The Global Entrepreneurship Index (GEI): a critical review

Ebrahim Bonyadi () and Lida Sarreshtehdari ()
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Ebrahim Bonyadi: University of Tehran
Lida Sarreshtehdari: University of Tehran

Journal of Global Entrepreneurship Research, 2021, vol. 11, issue 1, 469-488

Abstract: Abstract The present paper aims to assess the existing shortfalls in the model used for the computation of the Global Entrepreneurship Index (GEI) especially for economies that have not participated in the Global Entrepreneurship Monitor (GEM) annual surveys. Due to the lack of participation of some countries in these annual surveys, the authors of the GEI try to estimate the individual factors of the GEM non-members by employing data from member countries called “nearby and similar countries.” Using some examples and several statistical robust methods, this paper demonstrated that the estimated individual factors of non-member countries, especially in underdeveloped countries, will lead to an unavoidable error. Likewise, it was showed that, due to the unpredictable nature of individual factors, the use of the previous data is not justifiable. Additionally, this study showed that the use of the arithmetic mean (AM) will overestimate the individual factors for non-member countries, while the geometric mean (GM) has the capability of accurate estimation. Finally, using statistical procedures such as cluster analysis, non-parametric methods, and model selection methods, it was shown that the GEI values are divided into two different clusters. It seems that the main reason for this distinction was a dissimilarity between the GEI amount in the GEM members and non-members, which may be due to employing incorrect estimators and the underlying methods of the GEI.

Keywords: Global Entrepreneurship Monitor (GEM); Global Entrepreneurship Index (GEI); Critical review; Individual factors; Cluster analysis; Kolmogorov-Smirnov hypothesis test (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s40497-021-00302-0

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