Elgar original reference
In the previous two chapters, we have analyzed the Global Entrepreneurship and Development Index (GEDI) from a contextual point of view (Chapter 1) and from a development perspective (Chapter 2). In this chapter, we are concerned with methodological issues. Index-building is a complex task that faces several potential pitfalls. The problem starts with the vague and various deﬁnitions of a concept like entrepreneurship. We favor a complex perception of entrepreneurship, and we believe that this complexity requires a complex index, as opposed to the single measures of entrepreneurship. While we provide an exact description of entrepreneurship, in practical terms it is closer to a permeable frame than a closed box. Our approach to entrepreneurship involves three other important aspects. First, we view entrepreneurship as a concept of quality rather than quantity. Second, we consider both institutional and individual factors vital in measuring entrepreneurship. And third, measuring the pillars of entrepreneurship is based on a benchmark of the best existing achievement for each particular pillar. A critical part of index-building is identifying the proper weights, thus we provide a novel approach to determining weight, following the logic of the interaction variables applied in regression technique. Each of our 14 pillars is a result of the multiplication of an individual variable and an associated institutional variable. In this case, institutional variables can be viewed as particular (country-level) weights of the individual variables. This highlights another potential pitfall, the identiﬁcation of the proper institutional variables, which we discuss in detail. Another...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.