Disparities in entrepreneurial activity and attitude across EU countries

Abstract

The levels and characteristics of entrepreneurship differ widely across EU countries and regions. Taking as reference data provided by the Global Entrepreneurship Monitor (GEM) on entrepreneurial activity and entrepreneurial attitude, this paper analyzes the disparities in entrepreneurship indicators among EU member countries in 2007 and 2013, highlighting the most significant changes that occurred during the Great Recession. Some of the major indices of inequality are calculated (Gini, Theil and Atkinson) and the change in the Gini coefficient between these two years is additively decomposed into mobility and progressivity components. Overall, we find that cross-national inequalities tend to increase in the procyclical aspects of entrepreneurial activity and attitude, while they tend to decrease in the countercyclical aspects. For entrepreneurial activity indicators, we reveal that heterogeneity increases in indicators such as opportunity-driven entrepreneurial activity and total entrepreneurial activity, while necessity-driven entrepreneurial activity becomes more homogeneous across countries. Regarding entrepreneurial attitudes, disparities among countries decrease in all indicators, except in perceived opportunities, for which cross-national inequality grows considerably during the crisis period.