Determinants of Entrepreneurial Startups in India: A Study Using GEM data

Abstract

In this paper, the authors have investigated the factors that affect the decision to start a new business among Indians by using a sample of 2700 interviews of GEM 2012 APS Data. Factors related to demographic, perceptual, and intellectual and social capital have been used as independent variables and Intentional Entrepreneur has been used as the dependent variable. Logistic Regression Model has been employed to measure the influence of independent variables on the dependent variables. Findings showed that gender, perceived opportunities, self-efficacy (confidence in one’s own ability, knowledge and skills), knowing entrepreneurs, financing or having financed another business as a business angel are the major determining factors of new business start up. Policy implications of the findings have been discussed.