GEI지수 en

Global
Entrepreneurship
Index Report
Contents
I. Research Background and Purpose 4
II. Theoretical Background 7
III. Global Entrepreneurship Index 18
IV. Survey Composition of Global Entrepreneurship 46
Appendix
Questionnaire to measure Global Entrepreneurship Index 51
▒ Researcher
• Yun Jun Lee (Senior Research Fellow, Science And Technology Policy Institute)
• Seok-Kwan Kim (Director, Division for Industrial Innovation Research, STEPI)
• Yong-Ho Bae (Senior Research Fellow, STEPI)
• Younghwan (Paul) Kim (Associate Research Fellow, STEPI)
• Song Lim (Researcher, Division for Industrial Innovation Research, STEPI)
• Myoungju Koh (Researcher, Sungkyunkwan University)
▒ KEF Education&Research Team
• Gi-Hyun Kum (Acting director)

• Moonsun Kim (Manager)
• Moonjin Ban (Research Associate)
• Jaeyoung Park (Research Associate)
• Hyeram Kim (Research Associate)
I. Research Background and Purpose education
※At least 2/3 of member countries included the entrepreneurship education in middle
school’s official curriculum, furthermore, more almost all countries have included the
entrepreneurship education in the high school’s curriculum, according to EC report
(‘Entrepreneurship Education at School in Europe, 2012)
Necessity of Entrepreneurship Vitalization
• A typical example of entrepreneurship is revealed through business start-up,

whereas a core principle of creative economy is revealed in the multilateral
Necessity of Developing a New Entrepreneurship Index
aspect such as research, creation, etc.
• A policy solely aimed at the increases of enterprise birth is too limited,
- Entrepreneurship contributes to job creation and national economy growth requiring a paradigm shift in policy in response to nurturing the
through the business start-up entrepreneurship as a foundation of business start-up
※About 25,800 enterprises have been found by MIT (U.S.) alumni as of 2008, as a
- The policy focusing on start-up activities and cases is only existed to create
result, about 3,280,000 jobs have been created.
a short-term outcome.
- Entrepreneurship also creates to individual development such ※The start-up being activated by venture policy enforced at the end of the 1990s was
employment, income increases, etc. rapidly declined along the burst of venture bubble. The start-up again goes along the
※Employment rate among the college graduates who have completed the recently promoted policy upon the creative economy, accordingly, showing a U shape
entrepreneurship training was estimated at 78%, higher than non-trained graduates, in new investment for start-up companies.
59% (EC, 2013)
[New investment (including enterprise establishment investment company)]

• Key countries overseas consider entrepreneurship as a core factor of national
0.1 billion
competitiveness, actively encouraging the fosterage of entrepreneurship 24000
20,211
- (U.S.) Approach towards entrepreneurship education as a lifelong learning 20000
from elementary school to college and career training course

※(Elementary & Secondary School) Various non-profit educational institute such 16000
as NCEE (Excellence in Economic Education Act), NFTE (National Foundation for 12,608
Teaching Entrepreneurship) are taking a central role in developing and providing the 12000
10,910
9,917
educational program for children and teenagers 8,913 8,671
※313 4-year educational institutes have installed entrepreneurship subject for 8000 7,573
6,306
non-management majored, whereas 2,337 colleges have installed at least 1 6,177 7,333 7,247
6,044
entrepreneurship subject as of 2006. 4000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
- (Europe) The Oslo Agenda for Entrepreneurship Education (2006) in the EU
Source: Annual Investment Report, Korea Venture Capital Association
countries for a resolution for nurturing the entrepreneurship through the
4 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 5

• What’s the answer for Korea without Samsung Electronics?
Entrepreneurship & technical start-up
II. Theoretical Background
- Many have expected that Finland would sink a pit of seemingly hopeless
economic despair after the collapse of Nokia but Finland has rapidly
Definition of the Currently Existing Entrepreneurship
revived. Entrepreneurship and start-up are the key factors backed the
economic revival of the country.
• Entrepreneurship is a terminology widely used in specifying a new way of
- Citizens are required to understand the fact that Korean economic is no thinking and behavior in people continued seeking an opportunity to create
longer be growing if focusing on the leading companies, such as Samsung a new value
Electronics, Hyundai Motor Company, as its solution, the entrepreneurship
- Entrepreneur, as an academic terminology was first used by French
needs to be disseminated.
economist, Richard Cantillon (1734).
※Describing entrepreneur as farmer, manufacturer and seller who make purchasing
• The currently existing ‘Start-up Pull’ strategy focused on a short-term productive element or mass quantity of goods at a certain price and sell them at
outcome now needs to shift into ’Entrepreneurship Push’ strategy for the uncertain price to seek profit or difference
dissemination; accordingly, a new entrepreneurship index needs to be
- J. B. Say (1803) defined an entrepreneur in connection to definition by
developed for the understanding and measurement.
Cantillon, the one moves resource from lower to higher productivity
- J.A. Schumpeter in 1930 emphasized the entrepreneurial function affecting

[Necessity of Developing a New Entrepreneurship Index]
the economic growth; he defined the entrepreneurial activity in connection
Start-up
Enter
prise Pull to innovation, further defining it as the main agent of innovative activity
Birth
- After J.A. Schumpeter, many studies have been undertaken particularly

Entrepreneurship
on entrepreneurship and a common similarity found in entrepreneurship
Challenge Sprit
Entrepreneurship Innovativeness/
Creativeness
proposed by almost all studies was ‘risk-taking’, ‘innovation’ and ‘capturing
Push
Leadership Research and utilization of opportunity’.
Value Academia
orientation
Employm
ent
[Definition of Entrepreneur and Entrepreneurship]
Definition Author/Year
Entrepreneur: Defined entrepreneur to be risk taker when
R. Cantillon,
purchasing goods at a certain price and selling them at uncertain
(1755/1931)
price to seek profit or difference (self-employment)
Entrepreneur: The economic resources are moved from lower to
J. B. Say(1803)
higher productivity

Entrepreneur: An attempt in predicting and responding to market Entrepreneurship: A context dependent social process through Ireland, Hitt, &
Knight(1921)
changes; taking a dynamic uncertainty in the market individual and team to create wealth by combining the resources Sirmon
to exploits the market opportunity (2003)
Entrepreneur: Refers to an innovator leading the changes in the
market through 1) new product, 2) new production, 3) pioneering Entrepreneurship: Mindset and process incorporating risk-taking,
Schumpeter(1934) Commission
of new market, 4) the root of new raw materials and 5) new creativeness and innovativeness with the corporate management
of European
organizational structure either in a new organization or existing organization to create
Communities(2003)
and develop the economic activities
Entrepreneur: Refers to a speculative man who trades under
uncertain conditions in the future and carries both potential Entrepreneurship: Human’s promising activity identifies utilizes
von Mises(1946)
success and failure upon the accuracy of prediction on uncertain new product, process or market, creates and expands the Ahmad and Seymour
situation; the failure at the prediction may be fatal. economic activities to create a value, in other words, the social (2008)
phenomena connected to entrepreneurial activity
Entrepreneur: Mediator/arbitrator Warlas(1954)
Entrepreneurship: Not restricted to currently owned resources
Entrepreneurial activity: Refers to an activity to identify the Jongtae Bae, Minseok
Penrose(1959/1980) or capability, it refers to way of thinking and behavior capturing
opportunity in the economic system Cha (2009)
and seeking an opportunity
Entrepreneur: A trader who searches and realizes the opportunity
Kirzner(1973) Entrepreneurship: Entrepreneur’s will or activity to exhibits an Joomi Kim, Jaepil
of creating the profit, especially for a margin
adventurous spirit (innovative capability) to create a new value Park
Entrepreneurship: Seeking an opportunity regardless the despite of high uncertainty and risk in the future (2011)
Stevensons(1983)
resources currently owned
Entrepreneur: ‘A person always finds and responds to changes
and utilize them as an opportunity’
Entrepreneur spirit: Practical activities with the innovation to Drucker(1985)
create a new value to currently existing resource, not by science Previous Study on Entrepreneurship Determinants
or arts
Entrepreneurship: Thinking. Reasoning. Behavioral Pattern based • Determinants of entrepreneurship are classified into individual, organization
on Leadership focuses on the opportunity and exists in balance Timmons(1994)
with holistic approach (enterprise), region, country upon the level of analysis
Entrepreneurship: An effective action to involve a new. This new

involvement may be a new market providing the new product or Lumpkin & • The study on entrepreneurship at the individual level is to focus on
service, or establishing a new venture in the existing company, Dess(1996)
or through th internal start-up identifying the socio-psychological factors such as enterpriser’s individual
Entrepreneurship: Identifies economic opportunity, develops, psychology, personality, experiences and career, and further developing the
produces and sells products and services, ultimately a dynamic OECD(1997) component index of entrepreneurship at the individual level
process utilizing them
Entrepreneur: Refers to main agent of economic shift and - In many studies, the characteristics of background including gender,
growth not only to accelerate the production, disseminative and
OECD(1998) age, educational background, type of occupation, experiences with start-
utilization of innovative ideas, but also to encourage the effective
uses of resources and expand the range of economic activities up and experiences with operations management, and psychological
Entrepreneurship: A series of processes of finding, evaluating Shane & characteristics, such as the desire of accomplishment (McClelland(1961)),
and utilizing the opportunity; gathering of individual people to Venkataraman
controlling capability, risk-taking and acceptance of ambiguity are set as a
find, evaluate and exploits the opportunity (2000)
specific factor for the founder.

- Chrisman et al.(1998) have defined the composite index into 5 categories- ※Proposed 1) Start-up, 2) Facility investment, 3) New business, 4) Overseas
advancement and 5) Management innovation as 5 key elements of entrepreneurship
personality characteristics, value and belief, capability, experiences and
educations, and behavioral characteristics) - Korea Chamber of Commerce & Industry (2005)
※The surrogate index for entrepreneurship is estimated as a simple average of the
- Kuntz composed entrepreneur index with 103 questionnaires asking about
increases (%) of manufacturing · technical businesses (at least 5 employees) and
entrepreneur’s personality, skills must be acquired by entrepreneur and increases of facilities investment and increases of private research development
their awareness on start-up. expenses.
• Entrepreneurship at the organizational level focused on the organizational

- Korea Bank (2007)
process, strategic characteristic, behaviors of organizational member,
※Defined entrepreneurship index as the sum of increases of manufacturer, increases
process of creating the internal venture, etc. of facilities investment and increases of private research development expenses
considering GDP growth rate
- Timmons had focused on the opportunity, resources and entrepreneurial
team as an essential factor of entrepreneurship process - Korea Small Business Institute (2011)
Frame based upon aspects of 1) input, 2) output and 3) environment/
- The study conducted by Covin and Slevin (1989) described the
infrastructures to combine surrogate indices of the 3 aspects to draw the
entrepreneurship as innovativeness, risk-taking and proactiveness at the
composite index (CI)
organizational level.
- Entrepreneurship index by DongA Ilbo-Deloitte classified the composite
- Lumpkin and Dess (1996) added autonomy and competitive aggressiveness
factors into business activity, market environment and governmental
to 3 afore-mentioned characteristics to describe the entrepreneurship
environment, and further classified into new and mature company upon the
company growth stage.
• Entrepreneurship at the national (regional) level used most of objective
statistics data considering the objectivity and capability of obtaining the data [Domestic Entrepreneurship Index and Sub-Index]
to easily compare each country (region) Name of Institute Component Entrepreneurship sub-index/measuring item
Samsung
- In a certain country, the ratio of self-employed and employer was Economic Exports increase, investment increase, increase of
Input, output
commonly used as an index to measure the entrepreneurial activities in Research Institute enterprises
(2004)
detail
The Korea
Increases of business, Increases of facility
Chamber of
Input, output investment, increases of private research
Commerce &
development expenses
Industry (2005)
Domestic/International Entrepreneurship Index Increases of business, (Increases of facility
The Bank of Korea
Input, output investment – GDP growth), increases of private
(2007)
research development expenses
• Examples of Domestic Entrepreneurship
- Samsung Economic Research Institute (2004)

Input factor R&D investment of private company, FDI Inflow • Global Entrepreneurship Monitor
Self-employment ratio, increase of employees,
Korea Small Output factor - Annual survey on entrepreneurial activities started from the cooperation
dependency on trading
Business Institute
of London Management College and Babson College in 1999: At the
(2011) Environmental/
Index of economic freedom, human development
Infrastructure beginning, the survey was performed on 10,000 adults and 300 experts in
index, corruption perceptions index
Factor
10 countries and as of 2013, the survey was performed on 197,000 adults
New birth Start-up activity (weight of
and 3,800 experts at 71 countries
company opportunity start-up activities
Business Value-creating activity (number of - Total Early-stage Entrepreneurial Activity: TEA) was announced as a key
activity Mature registered patents, R&D investment
company in private sector, exports of high-edge index
DongA Ilbo- industry, etc.)
Deloitte ※Beginner Entrepreneur (Nascent): 3 months after start-up
Fund procurement such as venture capital (new ※New Entrepreneur (New Biz. Owner): 3 ~ 42 months
Market
company), stock market (mature company),
environment
personnel availability, personnel excellence, etc. - Composed of the National Expert Survey and Adult Population Survey
Governmental Rationality of regulations, appropriacy of taxes,
※National Expert Survey (NES) had evaluated the environmental factors of
environment political supports, political stability
entrepreneurial activities (5-point scale) and at least 36 people interviewed from each
country and among them, at least 25 were entrepreneur.
※Adult Population Survey was composed of 3 sectors - entrepreneurial attitude, activity
and aspiration. At least 2,000 adults were interviewed from each country by survey
[Conceptual Model of Global Entrepreneurship Monitor] team in each country.
Basic Requirements Adult Aptitude
Regulation Survey (APS) - Tea index of Korea was 6.9 in 2013, ranked 56th place among 71 countries
Infrastructures
Macroeconomic stability ※10.0(’08)7.0(’09)6.6(’10)7.8(’11)6.6(’12), Portion of living-type startup is higher
National Expert Health and primary
Survey (NES) education than the averages in EU and Asian regions
Efficiency index Established Firms ※Vulnerable Entrepreneurship education, finance, legal infrastructure and market
- Higher education/training
- Efficiency in product openness
market
- Efficiency in labor market
- Efficiency in financial Socio-
Social, culture
market economic • World Bank Doing Business: WBDB
- Technical Maturity development
and political - Market size (employment,
environment Entrepreneurship innovation,
Innovation and at individual level social value
- Annual survey to analyze the start-up and business operation at the
Entrepreneurship - Entrepreneurial
- Entrepreneurial finance attitude regulatory level
- Governmental policy - Entrepreneurial
- Governmental activity ※Published for 11 years since 2004 to 2014, the survey performed on 189 countries as
entrepreneurship program - Entrepreneurial
- Entrepreneurship training aspiration of 2014 (data collected from June 2012 to May 2013)
- R&D performance transfer
- Market openness
- Physical infrastructures - Ranking has been adjusted upon the annually renewed administrative
- Commercialization, legal
infrastructures procedure
- Cultural, social norms
※Targeting jurist, professor, administrator, etc. worldwide; 9,661 people participated

and 12,133 revisions made as of 2013 - Status of Korea at GEDI
- Survey performed on business regulations in 10 key sectors ※Korea was ranked at 33rd place among 121 countries as of 2014, up 10 spots from the
previous 2013 ranking.
※’Start a business’, ‘construction licensing, etc.’, ‘power supply’, ‘registration of
※Looking at the rank in the sub-parts announced in 2013, the entrepreneur attitude,
property right’, ‘credit acquisition’, ‘investor protection’, ‘taxes, etc.’, ‘international
ability and aspiration was ranked at 36th place, 59th place and 33rd place, respectively,
trade’, ‘resolution of contracts disputes’, ‘bankruptcy proceeding’
as of 2013; therefore, recognized opportunity, competitor and technical level where
※Composed of : Number of total stages in administrative procedures in each sector,
shown to be a key restraint.
required time for each procedure (number of required days), required costs for each
procedure (per capita income, %)
• Ernst & Young G20 Entrepreneurship Barometer
- Selection of Index and Priority
- Ernst & Young G20 Entrepreneurship Barometer (hereafter Ernst & Young)
※Ranking the sub evaluation factors for each sector and comparing them with the other
countries, and then defining them in a percentage (%) and averaging, selecting the refers to entrepreneurship index published by the international consulting
final ranking company, Ernst & Young through the survey performed on G20 member
- Status of Korea countries (including the EU)

※The survey was first started in 2011, and the 2nd index was published in 2013. Ernst &
※Recorded 7th place among 189 countries as of 2014, followed by Singapore, Hong
Young emphasized the role of entrepreneur and environmental factor satiable for the
Kong, New Zealand, the U.S., Denmark and Malaysia, taking a relatively higher rank
revelation of entrepreneurship as a motive factor leading the job creation and growth
※The regulations aimed at effective protection and management of entrepreneur’s
of regional society, in other words, the significance of entrepreneurial ecosystem.
assets and capital, such as investor protection (52nd place), registration of property
rights (75th place) were shown to exacerbate the difficulties executing the projects - Index Composition and Composite Factor
※Composed of qualitative index and survey, interviews on experts; the questionnaires
• Global Entrepreneurship and Development Index: GEDI are composed of 5 key pillars composing the entrepreneurial ecosystem, in other
words, fund availability, entrepreneurship culture, tax and regulations, education and
- A goal of GEDI is to measure the productivity of entrepreneurship based training, and cooperative supports.
upon the multi-lateral and systematic aspects of entrepreneurship and
- Status of Korea at Ernst & Young
to analyze the correlation between entrepreneurship and economic
※The overall ranking of Korea, according to the survey results released in 2013, Korea
growth, ultimately, proposing the plan customized to the enhancement of
was ranked at 3rd place followed by Canada and the U.S. among the G20 member
entrepreneurship for each country. countries. The fear of failure in the entrepreneurship was shown to be the lowest in
※GEDI is to basically share GEM study, and its conceptual model and theoretical Korea among the G20, which is totally being contrary to results drawn from GEM’s
background national experts survey (NES) or WBDB index.
- Entrepreneurial attitude, capability and aspiration were composed of 5,

• OECD Entrepreneurship (Entrepreneurship at a Glance) Study
4 and 5 pillars, respectively (total 14 pillars); selecting one variable at
individual and institutional level in each sector - The aims of OECD study are to investigate the revelation of
※All 14 variables at the individual level were quoted from APS, whereas other 14 entrepreneurship and influential factor of entrepreneurship, and the effects
variables were based upon statistics published by various international organizations of entrepreneurship on the economy and society.

※The report was published based upon the entrepreneur performance and index, - Failed to wholly apply the entrepreneurial performance level and
as well as the entrepreneurship determinants drawn from the ECD-Eurostat
determinant (individual enterpriser and environment) level
Entrepreneurship Indicators Programme (EIP) since 2006
※World Bank’s Doing Business (WBDB) or Ernst & Young G20 Entrepreneurship
※Rather than performing a new survey, the survey is based upon the key statistical
Barometer failed to propose the variables at the performance level of start-up activity,
index published by key economic organizations to extract and organize the
whereas OECD Entrepreneurship at a Glance comprised of insufficient items for
entrepreneurship index data.
entrepreneurial capability at the individual level.
- The indicators of entrepreneurial performance provided by OECD
- Insignificant contribution to the establishment of effective policy to
Entrepreneurship at a Glance comprehensively covers the extensive
enhance the entrepreneurship
entrepreneurial performances, including the entrepreneurial dynamics
※Most of measuring items composing the index are performance variables of
found in business start-up, closing, survival and the currently existing
entrepreneurial activities that were already visualized, or macroscopic economic &
companies, and the effects of dynamic on the national economy including social variables; therefore, it is considered to be limited to achieve the policy change
the creation of employment in short-term or artificially
※Number of start-up/closed enterprise, number of bankrupted enterprise, self- - Fundamental entrepreneurship poorly incorporated due to too much
employment ratio, closure ratio, sum of start-up and closure ratio (churn rate),
concentrated on start-up activities
survival rate (3/5 years), etc. at the enterprise level
※Weight of rapidly growing enterprise (at the perspective of employment increases),
weight of Gazelle enterprise, creation and reduction of employment followed by start-
up and closure, creation and reduction of employment in survival enterprise, etc.
※Performance indicators such as the added value, productivity, innovative performance
and export scales in young and small firms at the level of creating the wealth
- Indicators related to entrepreneurship determinant provided by OECD

survey
※Composed of 6 key parts - regulations selected from OECD-Eurostat Entrepreneurship
indicator program, market environment, access to financial service, creation and
dissemination of knowledge, entrepreneurial capability and entrepreneurial culture
• Key Issues in Entrepreneurship Indicator
- Failed to reflect the balance between the entrepreneurial process and

social environment (context)
※The entrepreneurship environmental index by the Word Bank is, especially, focusing
on relieving the regulations, thus, it is beyond its capability to describe the influential
factors on entrepreneurial activities at the individual level.
※Ernst & Young G20 Entrepreneurship barometer is also focused on the infrastructures
of start-up, rather than start-up or business activity itself

III. Global Entrepreneurship Index
※Entrepreneurship is ultimately, a practical capability, which is typically revealed
through the business start-up, considering the surrounding environment of the start-
up
• Focused on comparing the personal and behavioral characteristics, value

1) Entrepreneurship Index Conceptual Model and Index System
and belief at the individual and organizational level to measure more
fundamentals entrepreneurship
Definition of Entrepreneurship
※Challenging spirit, creativity/innovativeness, leadership (self-initiative), value
orientation at the individual and organizational level
“The practical capabilities to initiatively capture and challenge

the opportunity regardless of uncertainty and higher risk in the [Entrepreneurship-Based Conceptual Model]
future, and ultimately create a new value through the innovative

Entrepreneurship Culture
activities”
Start-up
Individual Organization Environment
Challenging spirit Challenging spirit

• (Where) Uncertain and risky situation  Challenge spirit Creativeness/
Practice
Creativeness/ (creative activity)
Innovativeness
• (Who) Self initiative  Leadership Education Innovativeness
Start-up Fail/
Leadership Re-challenge
Leadership Research,
• (When) Capturing·challenging opportunity  Challenge spirit (self-initiative)
Value orientation creation,
Value orientation employment, etc.
• (How) through the innovative activities  Innovativeness
• (Why) Pursuing individual·social benefits  Value orientation Entrepreneurship Infrastructure
• (What) Creating a new value  Creativeness
A Conceptual Model based on the Definition of Entrepreneurship • Surrogate index representing each factor is to be composed of qualitative
and quantitative index
• Apply the balance between the entrepreneurial process and social ※Data published by key organizations as an index representing the social and national
environment (context) level for quantitative indicator
※The entrepreneurial process should observe the following order: 'training  ※Date to be collected from the survey on index representing the recognition of
Recognition at individual and organizational level  practice (creation activity)  entrepreneurship at the individual and organizational level for qualitative indicator
failed and retried
• Social environment is composed of entrepreneurial culture and

infrastructures, and start-up environment

2) Composite Factor of Global Entrepreneurship (Index) Recognition at Individual and Organizational Level
Education • Components of Individual and Organizational Recognition
[Components of Individual/Organizational Recognitive Factor]

• Selected primary/secondary education, higher education, career education/
Large Sub-factors
lifelong education as a component to establish a lifelong educational system
Classification Personal Characteristics Behavior Characteristics Value and Belief
for each age group
• isk-taking
R
Challenging • Proactiveness
• Patience on • Future-oriented
Spirit (Activeness)
• Entrepreneurship training experiencers, and entrepreneurship regular ambiguity
• Flexibility
curriculum, such as creativity training and market economic principle
(Convergence
education were commonly used as key index in primary and secondary • Tendency to refer thinking)
Creativeness/
changes • Willingness to resolve • Technical emphasis
school. Innovativeness
• Pursuit of new problems
※Entrepreneurship is to be acquired through the learning, not by gifted talent or • External acceptance
capability; therefore the entrepreneurship training experience is important. (openness)

Leadership
• Autonomy • Social networking • Self-efficacy
(self-initiative)
• Start-up piratical training experiences, entrepreneurship and start-up lectures
Value
• Achievement need • Goal orientation • Social contribution
are used as a key index in the higher education and college. Orientation
• The career/lifelong education is focused on company practical education, ① Challenging Spirit

especially ‘weight of expenses on employee training’ is used as a key index.
• Challenging spirit defined as an ‘attitude actively challenges for capturing
[Definition of Entrepreneur and Entrepreneurship]
and utilizing the opportunity despite of high uncertainty of individual or
Key Factor Sub-Factor organization in the future.
• ntrepreneurship education experiences
E
Elementary/secondary education • Formulation of Entrepreneurship Regular
Curriculum • Based upon the previous studies performed on the component of
• xperiences with start-up training
E entrepreneurship, in this study, the following 4 factors, 1) risk taking, 2)
Higher education
• Entrepreneurship/Start-up Class proactiveness 3) tolerance of ambiguity and 4) future orientation are selected
Career education/life-long • ntrepreneurship/Start-up Training Experiences
E as the sub-components of challenging spirit.
education • Weight of Employee Training Expenses

[Components of Challenging Spirit] [Components of Creativeness/Innovativeness]
Personal Characteristics Behavior Characteristics Value and Belief Personal Characteristics Behavior Characteristics Value and Belief
• isk-taking
R • Flexibility(Convergence
• Proactiveness (Activeness) • Future-oriented
• Patience on ambiguity thinking)
• Capability and intention to
• Seeking a new (tending to
problem solution • Technical focus
seek a change)
• Acceptability to
[Meaning of Sub-Components of Challenging Spirit]
external(open
Characteristics Sub-characteristics Meaning innovativeness)
Tended to take a risk of uncertainty and risk to

[Meaning of Sub-Components of Creativity/Innovativeness]
determine the great investment of resources in
• Risk-Taking
order to capture the opportunity in the market for
Personal Characteristics Sub-characteristics Meaning
creating the profits.
Characteristics Tended to recognize and use a new, innovative
Capability to bear the long-term, uncertain and • eeking for a new
S
• Patience on Personal method to go beyond the current competitiveness
ambiguous situation and find the best solution (ding to seek a
Ambiguity Characteristics and currently existing technology or customs,
within the hardship change)
posing a distinct differentiation from others
Predicting and capturing the opportunity in the
Behavior • roactiveness
P Tended to create a new concept (technology,
market to take an active response to take the lead
Characteristics (Activeness) • Flexibility product, etc.) through diversified thinking and
in business
convergence, going beyond the fixed stereotype
Foreseeing the futures or predicting the market Behavior
• Capability to Capability and willingness to solve unknown
Value and Belief • Future-oriented needs in the future to take the opportunity in the Characteristics
solve problems problems
future, and taking an action to do that
• External Accepting new technology/information from
acceptance outside to seek and adopt the changes
② Creativeness/Innovativeness Agreed the fact that new technology (process,

Value and Belief • Technical-focused product or idea) to change the world
(competitiveness)
• Creativeness in the previous studies have defined as novelty or distinct
differentiation, whereas innovativeness is defined as will to be away from
③ Leadership (Self-Initiative)
the current technology or customs, as well as capability to adopt a new think
earlier than other competitors.
• Entrepreneurship is defined as the practical capability to initiatively lead the
innovative activities, while leadership can be set one of entrepreneurship
• Sub-items of creativity/innovativeness ar composed of 1) personal
as the main capability of (prospective) enterpriser to lead the innovative
characteristics (seeking a new – change), 2) behavioral characteristics
activities
(flexility-convergence thinking, capability and willingness to solve the
problems, external acceptance – openness innovation) and 3) value and
• In this research, autonomy (personal characteristics), extroverted/social
belief (focused on technology).
network (behavioral characteristic) and self-efficacy (value and belief) are
selected as factor composing the leadership (self-initiative)

[Components of Leadership (self-initiative)] [Meaning of Sub-Components of Value Orientation]
Personal Characteristics Behavior Characteristics Value and Belief Characteristics Sub-Component Meaning
• Extroversion/social Refers to an individual’s psychological needs for
• Autonomy • Self-Efficacy Personal • eed for
N
networking achievement seek to excel to avoid any barriers
Characteristics achievement
and difficulties to achieve a goal (or success)
Behavior Personal tendency to develop or prove one’s
• Goal orientation
[Meaning of Sub-Components of Leadership (self-initiative)] Characteristics capabilities in achievement environment
Awareness and behavior focusing on creating
Characteristics Sub-Component Meaning
• ocial
S
Value and Belief social values to make an effort to solve social
contributions
Personal Independency of team or individual to propose issues
• Autonomy
Characteristics the idea or vision to complete them
Capability in networking to acquire the necessary
Behavior • xtroversion/
E resources via having a relationship with various
Characteristics social networking participant in ecosystem one or organization
belongs to.
Practice (Creative Activity)
Capability to perform the actions required to
Value and Belief • Self-efficacy create the outcomes and decision-making on one’ • Components of Practice (Creative Activity)
capabilities
- The components of practice (creative activity) are classified into start-up
and other creative activities (research, creation, employment, etc.)
④ Value Orientation
[Components of Practice (Creative Activity)]
• Value orientation is to intentionally seek or exert power on a particular value
Key Factor Sub-Factor
(or norm) considered to be appropriate by individual or society • xperiences with start-up
E
Start-up • Purpose of start-up
• Intention and period for future start-up
• In this study, the need for achievement (personal characteristic), goal
• R&D productivity
orientation (behavior characteristic) and social contributions (value and • Weight of creative talents
Research, creation, employment, etc.
• Diversity of jobs
belief) are selected a component of value orientation.
• weight of creative industry
[Component of Value Orientation]
Personal Characteristics Behavior Characteristics Value and Belief • Start-up

• Need for achievement • Goal orientation • Social contributions
- Used the experiences with start-up (period, number, purpose, area,
intention, etc.) as a key index to measure the performance of start-up
※Intention for future start-up may be the potential performance index for start-up,
therefore, the intention and period for future start-up also used as key index

• Research, Creation, Employment, etc. Start-up Training
• Start-up training/start-up accelerator
Start-up
- Employment rate and number of occupations in terms of employment are Infrastructures Technical Transfer/ • echnical Transfer Organization (TLO)
T
used a key index Cooperation • Weight of Technical Cooperation
① Regulation
Start-up Environment
• Labor
• Components of Start-up Environment
- ‘Rigidity of working hours’, ‘availability of employment’, etc. can be set
- Influential factors of entrepreneurship are classified into education, as surrogate index of labor regulations and these indices are also used in
knowledge infrastructures, culture, regulation, market condition and WBDB.
financial environment, according to OECD.
- Of 6 factors proposed by OECD, regulation, market condition, financial • Administrative Procedure
environment are directly related to start-up or business activity, which are,
- The administrative procedure index in the WBDB was used as the
therefore, regulated as the environmental factor for business start-up.
surrogate index applying the administrative procedure affecting the start-
[Components of Start-up Environmental Factor] up
Key Factors Sub-Factors ※Ones mostly directly related to start-up in this study, ‘number of required procedures, days
Labor • Availability of employment and costs for company foundation’ was used as key index.
Administrative ※ Survey asking the easiness in establishing the company can be used.
• Company foundation procedure and cost
Procedure
Tax • Corporate tax
Regulation • Tax
Intellectual • rotection of Intellectual Property
P
Property • Average costs of patent registration
- For index related to tax regulations, ‘total corporate tax on tax returns and
Governmental
• Burden on governmental restrictions pre-tax profits’ by WBDB as quantitative index, and other survey asking
Policy
• arket accessibility
M the propriety of corporate tax can be used.
Market Domestic Market
• Monopoly and bidding regulations
Environment
Overseas Market • Globalization • Intellectual Property
• C fund availability for start-up company
V
Investment
• VC and angel investment scale
- Used ‘licensing restraints’ announced one of World Development
Financial • und availability for new company
F Indicators published by the World Bank as surrogate index that applies the
Loan
Environment • Available loans for SME
regulations on intellectual properties affecting the start-up at the earlier
Governmental • und availability for start-up company through
F
Support governmental support program stage

※The survey asking the average patent registration costs in each country, ‘protection of - One of the most important investors at the start-up stage can be said angel
intellectual property right’, can be sued as a key index.
investor, followed by Venture Capital; therefore its related index are mainly
used.
• Governmental Policy
- One of conditions required to activate the investment environment is to
- The ‘unification · propriety · effectiveness of governmental support
make smooth investment returns; therefore, the weight of investment
program for start-up company’ can be used as an index reflecting the
returns through M&A, in which returning period is considered significantly
governmental policy at the start-up stage, while the survey asking the
shorter than the IPO is used as a key quantitative index.
‘burden on governmental restriction’, which is mostly being handled
recently can be used at the growth stage.
• Loan
- The ‘restriction of domestic credit’ can represent the available loans for
② Market Environment
company is used a key quantitative index and if identifiable, the business
loans available for SMEs from bank would be more suitable to quantitative
• Domestic Environment
index.
- Access to market, governmental control on price, monopoly and bidding
- Non-secured Loan availability for start-up fund is used as qualitative index
regulations may become a crucial barometer.
- In addition, the market cohesion or population can represent the market • Governmental Supports
scale can be used as quantitative index.
- The ‘fund available for start-up company through the governmental
supports’ is to be ensured through the survey as qualitative index. It will
• Overseas Market
be hard to identify by country, but the ‘scale of governmental support for
- Globalization Index provided by KOF Swiss Economic Institute is to be start-up’ can be used as quantitative index.
used as key quantitative index, as well as national Credit Rate provided by
IMD and Credit Assessment Institute.
④ Start-up Infrastructures
- The number of documents and days required for import and export are
also crucial barometer, which is to be used as an index for overseas market • Start-up Cultivation
environment.
- Number of start-up cultivation center and start-up accelerator is selected as
key quantitative index.
③ Financial Environment
- Moving-in to start-up center and degree of supports from the center are
ensured through the survey as qualitative index.
• Investment

• Technical Transfer/Cooperation Entrepreneurial Culture
- Technical Transfer Organization (TLO) such as Israel YEDA and industry-

• Entrepreneurship is absolutely impacted by culture - how does challenging
academia interactions announced from IMD or technical cooperation are
spirit spread throughout the society? Is image on entrepreneur positive? Is
used as a key index.
atmosphere created for rechallenge on failure?
• This culture can be further classified into private, social and governmental
Failure and Rechallenge
level.
• Components of Failure and Rechallenge [<Table 3-119> Components of Entrepreneurial Cultural Factor]

- Rechallenge based upon the failed experiences is important, which is
• One’s preferred job (Entrepreneur preference)
enabled by the recognized failure; therefore, the components of failure/ Individual
• Parent’s preferred job (Entrepreneur preference)
rechallenge are classified into awareness and experience. • Media’s interests on enterpriser
• Status of enterpriser
Society
[Components of Failure/Rechallenge Factor] • Degree of social safety network
• Social recognition on failure

•
Degree of Corruption
• Fear of failure Government • Bureaucracy
Recognition
• Recognized rechallenge • Tolerance for failure
• Failed start-up
Experience
• Rechallenged start-up
• One’s individual preference and social culture affect one’s decision on
• Recognition career; therefore, one’s preferred jobs are surveyed.
- Fear of failure is being handled in many entrepreneurship studies, thus, it • Social atmosphere is important to nurture the entrepreneurship ; therefore,
is used as awareness index. the media interests on entrepreneurship and social status of entrepreneur
are used as a key index.
• Experience
- Start-up as well as closure are treated as key performance index in many • The most important in governmental role at the perspective of culture
entrepreneurship studies; therefore, the survival rate and restart-up rate is to support the rechallenge after failed and in order to measure them,
are used a key quantitative index. the acceptance to failure in governmental support project was used as
※Failed start-up (time, case, reason, etc.) is sued as a ky index to measure the failure and qualificative index.
rechallenge.

Entrepreneurship Infrastructure 3) Global Entrepreneurship Index System
• Components of Entrepreneurship Infrastructure Factor Existing Entrepreneurship Index
[Components of Entrepreneurship Infrastructure Factor]

• Entrepreneurship Index by Entrepreneurial Process
• Entrepreneurship Private Organization - The currently existing entrepreneurship indices in the entrepreneurial
Organization
• Entrepreneurship Governmental Organization
processes of ‘education  individual/organizational awareness  practice
Budget • Entrepreneurship Governmental Budget Scale
(creative activity)  failure/rechallenge’ focused on education and start-up,
Research • Entrepreneurship Association and Journal
and failure/rechallenge.
• Organization - No relative index is set up on research, creation, employment in individual

and organizational awareness, practice (creation activity).
- The governmental involvement and supports for nurturing the
entrepreneurship are different in each country; therefore, both private and [Existing Entrepreneurship Index by Entrepreneurial Process]
governmental entrepreneurship organization are considered. Sub-Factor

Category Key Factor
Qualitative Index Quantitative Index
• Budget • umber of registrants
N
Elementary/ •Entrepreneurship education and
to secondary education
Secondary training at elementary/secondary
before college (Ernst &
education education (GEM, NES)
- Governmental budget for nurturing the entrepreneurship was solely used Young )
as an index. • Entrepreneurship education and

training at college education ((GEM, • Number of registrants to
NES), OECD) tertiary education (Ernst &
• Participation in entrepreneurship Young )
• Budget education (EC, Euro Barometer Survey • International students of
Higher
on E-ship) tertiary education (OECD)
education
• Effectiveness of entrepreneurship • Academic background
- For research infrastructures on entrepreneurship, the entrepreneurship Education
education (EC, Euro Barometer Survey higher than secondary/
association and journal were used as an index. on E-ship) higher education among

• Level of management graduate school TEA (GEDI)
(OECD)
• Entrepreneurship education and
training at career/lifelong education
Career
((GEM, NES), OECD)
education/
• Company's activeness to spend budget
life-long
on employee training (GEDI)
education
• Irregular education, Entrepreneurship
education(Ernst & Young (Self-survey))

• Private/public R&D • Degree of fear on failure (Ernst & Young
expense compared to (Self-survey))
GDP (OECD, GEDI, Ernst &
Awareness
• Awareness on failure ((GEM, APS), • ankruptcy proceeding
B
Young ) GEDI) costs (Ernst & Young (WDI))
• Corporate investment on Failure/ • Awareness on re-challenge (EC, Euro
R&D (OECD) re-challenge Barometer Survey on E-ship)
Challenging
• G overnmental investment Experiences with failed start-up (GEM,
• Recognition of Risk Sensitivity (Ernst & •
on R&D (OECD) •5-year survival rate of
Spirit Young (Self-survey)) Experiences APS)
• College investment on company (OECD, SDBS)
• Reasons for failed start-up (GEM, APS))
R&D (OECD)
• Private R&D investment
Note: Index name (·) is to indicate the other measure/index using this index
on college (OECD)
• B usiness Risk
Environmental Factor
(GEDI)
• Entrepreneurship Index by Social Context
Individual/ • umber of triad patents
N
organization (OECD)
• International cooperation
- Set an index focused on the culture; the currently existing index is
recognition
at PCT patent applied
failed to cover the entrepreneurship infrastructure on entrepreneurship
(OECD)
•
Innovative business strategy at
Creativity/ enterprise level (GEDI, WEF)
• Number of scientific organization, budget, research, etc.
technical paper submitted
Innovation • Activeness to absorb technology at
(SCI thesis) (OECD, Ernst
enterprise level (GEDI, WEF) [Existing Entrepreneurship Index by Social Context]
& Young )
• Number of innovative
corporate possessed by Sub-Factors
college or public institutes Division Key Factors
(OECD)
Qualitative Index Quantitative Index
Leadership
• Entrepreneurship of manager (OECD,
(Self- IMD, WCY)
• Preference on Self-Employment ((EC,
initiation
Individual Euro Barometer Survey on E-ship),
Value OECD)
orientation • Fear of failure (GEDI,(GEM, APS), Ernst
• Self-employment ratio & Young Limited)

(OECD) • Awareness on social, cultural norms
• Total Early-Stage (GEM, NES)
Entrepreneurial Activity Culture • Corruption index (GEDI,
• Awareness of entrepreneurship career
(TEA) TI)
and wealth entrepreneurship (Ernst &
• Subscription rate to public
• Weight o f new product Society Young (Self-survey))
• Experiences with start-up, management health insurance (OECD)
start-up (GEM, APS) • Awareness on successful enterpriser
know-how, degree of capability for • Public expense on
• Weight of new technical (GEDI)
resource systematization (GEM, NES) industrial support (OECD)
Start-up start-up ((GEM, APS), • Views on business foundation as career
• Purpose of start-up (EC, Euro Barometer
Practice GEDI) (GEDI)
Survey on E-ship)
(Creative • Weight of Gazelle
• Entrepreneur intention (GEM, APS) Government Satisfaction on Public Official's
•
Activity) company ((GEM, APS),
GEDI) Response (GEM, NES)
• Opportunity start-up Organization
portion ((GEM, APS), GEDI) Infrastruc-
Budget
• Weight of living-type start- tures
up ((GEM, APS), GEDI) Research
Research, Note: Index name (·) is to indicate the other measure/index using this index
Creation, • upports for engineer, scientist (GEM,
S
Employment, NES)
etc.

• Currently Existing Entrepreneurship Indicator representing Start-up • arket accessibility (GEM, NES)
M
• Governmental control over price • Size of domestic market
Environment (OECD,(IMD, WCY)) (GEDI, WEF))
• Degree of restrictions on monopoly • Degree of urbanization
- Composed of various indices related to start-up environment; however, and collusion (GEM, NES) (GEDI, UN)
Market Domestic
Environment Market
• Competitors ((GEM, APS), GEDI) • E conomic freedom
failed to apply both quantitative and qualitative index at a proper balance • Degree of market share by leading (GEDI(Heritable foundation,
companies (GEDI, WEF) World Bank))
• Degree of public enterprise"fs • Inflows of foreign labor
[Typical Entrepreneurship Index for Start-up Environment] investment (OECD, IMF) population (OECD)
• Consumer satisfaction (OECD, WEF)
Sub-Factor
Category Key Factor • Level of globalization (GEDI,
Qualitative Index Quantitative Index Globalization Index)
• National creditability level
• Availability of employment (WBDB, (OECD, (IMD, WCY))
OECD) • Documents required for
Labor • Rigidity of working hours (WBDB, Market Overseas export (Ernst & Young ,
OECD) Environment Market WBDB, OECD)
• Difficulty of dismissal (WBDB, OECD) • Documents required for
import (OECD, WBDB)
• Business start-up procedure, • Portion of foreign consumers
costs (Ernst & Young ,WBDB, among corporate customers
OECD) (GEM, APS)
• Licensing procedure for
construction, etc. (Ernst &
ossibility
• P of self, other and angel • VC size (OECD)
investment (GEM, NES) • Fund
Young , WBDB, OECD) • Availability in procuring funds
size of share market
• Power supply permission compared to GDP (OECD)
through VC, IPO for start-up
procedure (Ernst & Young , companies (GEM, NES)
• M arket capital size of new
Administrative Investment listed corporations (OECD)
WBDB) • Availability of VC investment at start-
Procedure • Number of angel investors
• Bankruptcy procedure (Ernst up stage (Ernst & Young , WEF, GEDI,
(GEM, APS), GEDI
& Young , WBDB, OECD) OECD)
• IPO Availability (Ernst & Young (Self
investment index ((GEM,
• Registration of property APS), GEDI)
rights (Ernst & Young , survey))
WBDB,OECD) • Weight of business loans of
Regulation • Resolution of contracts
Financial
SMEs (OECD)
Environment • Availability • Interest rate spread (OECD,
disputes (Ernst & Young , of unsecured loan for
WBDB, OECD) Loan start-up fund ((GEM, NES), OECD, IMF)
WEF) • Domestic loans to private
• Various tax-related sector (Ernst & Young ,
regulations, such as direct OECD, WDI)
Tax
• Appropriacy of corporate taxes (GEM, tax, indirect tax, installments,
NES) • Fund availability through
costs, etc. (Ernst & Young ,
governmental support for start-up
WBDB, OECD)
Governmental companies (GEM, NES)
• Degree of intellectual property Supports • Degree of governmental support
Intellectual for start-up companies to acquire
protection (GEM, NES),(OECD, WEF)
Assets technology (GEM, NES)
• Licensing restrictions (OECD)
• Degree of burden on governmental
restrictions (GEM, NES), (OECD, WEF)
• Sufficiency, effectiveness, affinity, • overnmental incentives
G
Governmental accessibility of governmental start-up (Governmental R&D
Policy support program (GEM, NES) expenses) (Ernst & Young ,
• Protection of investor (WBDB, OECD) World Bank)
• Availability of foreign labor
employment (OECD, WEF)

• Effectivenessof start-up training [Typical Entrepreneurship Index for Start-up Environment]
Start-up center (GEM, NES)
training • Presence of college, business Sub-Factor
organization incubator, governmental program Category Key Factor
(Ernst & Young (Self survey))) Qualitative Index Quantitative Index
• Efficiency of technical transfer from • Entrepreneurship education
college, public institutes (GEM, NES) at elementary and secondary
Technical • Accessibility to new research and
transfer curriculums (creativity education,
technology (GEM, NES) Elementary market economic principle education,
organization • Efficiency of technical transfer (GEM, • Entrepreneurship in official
secondary etc.) (self survey)
NES) curriculum
education • Degree of entrepreneurship/start-up
Start-up
• Number of internet, education supports in elementary/
infrastructure
automobile, traveler secondary educational curriculums
transportation uses (Ernst & (self survey)
ommercialization
• C infrastructure
Young, WDI),
(GEM, NES) • Number of internet uses Education • Experiences with start-up education
• Networking (Enterpriser networking
Higher at college (self survey)
• Average number of
(GEDI(WEF), WDI) Entrepreneurship/start-up
Other organization, the Chamber of • Sales of electronic education • Degree of start-up education
infrastructure Commerce & Industry, etc.) (Ernst & classes at college
transaction (OECD) supports sat college (self survey)
Young (Self survey)) • Number of companies
• Presence of well-known enterpriser • Experiences with entrepreneurship/
using electronic transactions
(GEM, APS), GEDI Career start-up education in career /lifelong
(OECD)
• ICT expenses (OECD) education educational courses (self survey) • Portion of expenses on
• ICT expen / lifelong • Degree of entrepreneurship/start-up employee training
education education supports in career /lifelong
Note: Indios are to indicate the other measure/index using this index educational courses (self survey)
• Risk-taking tendency (self survey)
Individual/ • Patience on ambiguity (self survey) • Expenses on private/public
Challenge
organizational • Proactiveness (Activeness) (self R&D compared to GDP
spirit
awareness survey) (OECD, WDI)
Index System in Global Entrepreneurship Index •Future-orientation (self survey)
• Tendency to prefer changes (self
survey)
• Tendency to seek a new (self survey)
• Entrepreneurship Index by Entrepreneurial Process • Number of triad patents
• Flexibility (Convergence thinking)
Creativeness/ (OECD, WDI)
(self survey)
innovative- • Number of scientific
- Education, start-up, failure/rechallenge that are commonly treated in the • Capability and intention to problem
ness technical papers (SCI thesis)
solution (self survey)
existing entrepreneurship index used the current index. (OECD, WDI)
Individual/ • Acceptability to external(open
organizational innovativeness) (self survey)
awareness • Technical-value (self survey)
- Practices (creation activity) other than start-up such as individual/
• Autonomy (self survey) • Satisfaction life goal
organizational awareness and research, creation, employment, etc. that Leadership
• Social networking (self survey) realization (World well-being
(Self-initiative)
• Self-efficacy (self survey) index)
are rarely handled in the existing entrepreneurship index are separately
• Need for achievement (self survey) • Top 100 companies
surveyed. Value
• Goal-orientation (self survey) in corporate social
orientation
• Social contribution (self survey) responsibility (CSR)
- The data published by the international organization, etc. were used for
index and those quantitative indices having difficulty measuring the overall
countries are to be measured in the future upon the conditions in each
country.

• Experiences with start-up (Start-up • Self-employment ratio [Entrepreneurship Index by Social Context]
time, sector, numbers) (self survey) (OECD)
Start-up • Start-up motive (self survey) • Start-up activity index Sub-Factor
• Intention for future start-up (self (TEA)(GEM, APS) Category Key Factor
Practice Qualitative Index Quantitative Index
survey) • Average start-up trials
(Creative
activities) • One’s preferred job (self survey)
Research, • Satisfaction on current job (self • R&D productivity Individual • Parent’s preferred job (self survey)
creation, survey) • Creative class index(ILO) • Preferred job for kids (self survey)
employment, • Level of current income (wage) (self • Weight of creative industry
etc survey) • Number of occupations • Media’s interests on enterpriser (GEM, • Tolerance index (World
APS)
• Costs required for Values Surveys)
• Status of enterpriser (GEM, APS)
• Degree of fear on failure (GEM, APS) bankruptcy proceeding
Culture Society • Degree of social safety network (self
• Public expenses on supports
Awareness • Awareness on rechallenge (EC, Euro (WDI) for the unemployed (OECD)
survey)
Barometer Survey on E-ship) • Range of excluded • Community safety, pride
• Social recognition on failure (EC, Euro
Failure/ sequestration at bankruptcy (World well-being index)
Barometer Survey)
re-challenge • Experiences with failed start-up (self • Bureaucracy (self survey)
survey) • Corporate 5-year survival • orruption index (GEDI, TI)
C
Experiences • Reasons for failure (self survey) rate (OECD, SDBS)
Government • Satisfaction on public official’s • Welfare budge size
response (self survey)
• Restart up experiences and time (self • Restart-up rate
survey) • ntrepreneurship private
E
organization
Note: index without a parenthesis just like the organization of regular curriculum is to be • Entrepreneurship center at
built upon the conditions of each country in the future. College

Organization • E ntrepreneurship
governmental organization
• E ntrepreneurship
• Entrepreneurship Index by Social Context governmental organization
Infrastructure
size
- Culture index are commonly treated in the existing entrepreneurship, thus, Budget
• ntrepreneurship
E
governmental budget size
this index is mainly used. • ntrepreneurship society
E
and journal scale
Research
• Entrepreneurship society
- Quantitative index that were rarely found in the currently existing index,
members
such as public expenses, community safety/confidence for tolerance index
Note: index without a parenthesis just like welfare budget scale is to be built upon the
and supports for unemployment was added. conditions of each country in the future.
- Quantitative index on entrepreneurship infrastructures that was never

covered in the existing index was newly added. • Entrepreneurship Index as Representative of Start-up Environment
※Those quantitative index was not currently quantified in each country, which are to be
- Used start-up environment index that is commonly covered in the currently
measured later.
existing entrepreneurship index
※A concept on ‘Entrepreneurship’ is not clearly defined yet; therefore, it was limited to those
containing a word, ‘Entrepreneurship’ (organization, budget, association, etc.)
- Most of currently existing indices were measured through the expert
survey; in this study, however, the self-survey was performed on general
adults who have experienced with start-up.

[Typical Entrepreneurship Index for Start-up Environment] • Weight of MSEs in business
loan (OECD)
Sub-Factor Loan
•Non-secured Loan availability for • Domestic loans available
Category Key Factor start-up fund (OECD, WEF)
Financial for private sector (Ernst &
Qualitative Index Quantitative Index Young, OECD)
Environment
• Availability of employment (WBDB,
Governmental
•Fund availability for start-up
OECD) •Scale of governmental
Labor • Employment rate (OECD) company through governmental
• Rigidity of working hours (WBDB, Supports supports for start-up
support (self survey)
OECD)
Start-up
• Moving-in to start-up cultivation • Number of start-up
• umber of procedures
N center (self survey) cultivation center installed
required for foundation cultivation
• Degree of supports from the center • Number of start-up
(WBDB, OECD) organization
Administrative •Availability in company foundation (self survey) accelerator
• Number of days required for
Procedure (self survey) Start-up
foundation (WBDB, OECD) • umber of TLO
N
• Costs required for foundation
infrastructure • Technical transfer from outside (self • Number of TLO organization
Technical
(WBDB, OECD) survey) • Weight of technical
Transfer/
cooperation
•Main entity for technical transfer cooperation (OECD, CIS)
• Corporate related taxes (self survey) • Academic-industrial
Regulation
• ppropriacy in corporate taxes (self
A (WBDB)
Tax knowledge transfer (IMD)
survey) • Total tax for profits where
tax is not applied yet (OECD) Note: Index without a parenthesis just like the average costs of patent registration is to be
• Average costs for patents built upon the conditions of each country in the future.
• icensing restrictions (OECD)
L
Intellectual registration
•Degree of intellectual properties
Assets • Average technical fee per a
(OECD)
technical transfer
• Degree of burden on governmental
restrictions (OECD, WEF)
Governmental
• Effectiveness of governmental
•Governmental budge for
Classification of Study Index (Global Entrepreneurship Index) by
Policy start-up supports
support program for start-up (self
survey)
Source
• ccess to market (self survey)
A
• Governmental control over prices • Market cohesion (GEDI, • The index used in this study (global Entrepreneurship index), first was to
Domestic
(OECD, WCY) WDI)
Market
• Population (GEDI, UN)
• Degree of restrictions on monopoly use and improve the currently existing entrepreneurship index, secondly to
and collusion (self survey)
Market newly develop and adopt them.
• Degree of globalization
Environment • Access to overseas market (self (Globalization Index, GEDI)
Overseas
survey) • Weight of average export • Those existing entrepreneurship indices that satisfy the index system in this
• Satisfaction of governmental (IMF, World Bank)
Market
supports for overseas market • Documents and days
study (global entrepreneurship index) were used as they are without any
advancement (self survey) requires for export/import
(WBDB) revision or modification made.
• VC scales compared to GDP
• und sources for start-up (self
F (OECD)
survey) • Angel investment scale
• The index being handled in the existing entrepreneurship index but the
Financial
Investment • VC fund availability for start-up compared to GDP survey subject or item (example) is different, the revised or improved survey
Environment
company (self survey) • Scale of investment
• Investment returns (self survey) • Weight of investment returns was additionally performed.
through a M&A
•A
mong the newly developed/adopted indices, the ones published by the
international organizations that are not the existing entrepreneurship are used
but if there’s none, the index is additionally surveyed or to be built in the future.

4) How to Calculate an Index - The calculated comprehensive index went through a conversion process to
be fallen within 1-7 section to determine the final score.
Normalization of Data
• Necessity of Normalization 5) Differentiation from the Currently Existing Entrepreneurship Index

※Normalization refers to a process used to equally convert the measuring unit of data used in
calculating the index. • Applied a proper balance between process and environmental aspects
- If gathering the values measured at different measuring unit without going - Index to be composed through a series of process from ‘Entrepreneurship
through the correction, the impacts of index with the smaller measuring training  Individual and organizational awareness level  practice
unit may be underestimated, therefore, the results after the sum-up may (creation activity)  failure and rechallenge’
be distorted.
index with the greater measuring unit • Including other creative activities such as research, creation, not only the
start-up
• Normalization in This Study
- The currently existing entrepreneurship index considers start-up as a key
- The data are to be converted to observe the normal distribution and then a performance
Max-Min technique is used to apply the scores for data to be falling in 1-7
sections • Defined ‘challenging spirit · creativeness/innovativeness · leadership · value
orientation’ as a core spirit, which becomes a foundation for start-up and
creation activities
Applying Weighted Value
[Differentiation from the Existing Entrepreneurship Index]

• The importance attributed to individual factors in the integrated index
combining with various components may be different; the results, therefore,
This study OECD
may be different upon how weighted value is applied. No common
GEM
consensus has been reached which type of weighted value should be Core principle
Start-up
applied to which factor; therefore, the weighted value is applied upon the -Challenge spirit
-Creativeness/ Education, culture, market, system,
characteristics of index, and views of index developer. innovativeness etc. Creative
-Leadership activity
-Value other than
• How to Apply Weighted Value in This Study orientation Start-up
- The same weighted value is applied to all individual factors composing the
index in this study.

IV. Survey Composition of Global • The survey participants were economically active population aged from 20
to 64 years old.
Entrepreneurship
2) Size, Gender, Age of Survey Participants
1) Selection of Survey Subject • Size of Participants
- The size of survey participants was based upon the results of the existing
• Subject of Existing Entrepreneurship Survey
global entrepreneurship survey; therefore, the participants should be
[<Table 4-2> Subjects of Existing Entrepreneurship]
determined upon the attributes of entrepreneurship definition proposed in
Name of Beginning Number of Survey Survey Subject this study.
Country
Index Year Subject (respondent) (respondent) Age
About 197,000 - For this context, it would be appropriate size of participants based upon
70 overseas
general adults
GEM 1999 countries 16 - 64 years old the weight of opportunity start-up by GEM APS survey
About 3,800
(As of 2013)
experts ※The weight of opportunity start-up, according to APS results from 2006 to 2010 announced
121 overseas - - by GEM was estimated at least 2.03% for OECD countries, average of 5.03%.
GEDI 2008 countries (Used GEM survey (Used GEM survey
(As of 2013) results) results) - To include at least 30 opportunity start-up activists in the survey, it would
No limitation on
Ernst & be appropriate to include at least 600 up to 1,500 people in the survey
ages (65% of total
Young G20 G20 member
2011 1,500 enterprisers respondents: ~ subject.
E-ship countries
40 years, 35%: 41
Barometer
years ~)
Euro
• Composition of Participants by Age and Gender
41 countries
Barometer 42,000 or more
2000 including EU 27 15 or older - The composition or participant by age and gender is to be determined
Survey on general citizens
(As of 2012)
E-ship upon the age and gender of labor population in the country, as well as the
characteristics of distribution be age.
• Entrepreneurship is the practical capability to create a new value, therefore,
- Based upon the OECD labor population statistics, female-male ratio at 1 :
the proper age is the economically active population ranged from 15 to 64
0.79, composition by age: 20-24 years 9.4%, 25-34 years 24.3%, 35-44 years
years old
25.7%, 45-54 years 24.8% and 55-64 years 15.8%)
• Most of teens are currently attending elementary, middle and high schools;
therefore, those aged less than 19 years are exempted.

[Gender and Age Ratio in Survey, This Study] • Survey Scale in This Study
Gender Ratio Ages Ratio (Subjects aged from 20 to 64 years old = 100)
Division - Currently existing studies occasionally used 7-point Liker scale considering
(Male=100) 20-24 25-34 35-44 45-54 55-64
the survey contents and subject in this study based upon the existing
Average 79.2 9.4 24.3 25.7 24.8 15.8
studies as reference.
Korea 71.7 5.9 23.1 26.7 27.9 16.3
※Likert scale is highly reliable commonly used in evaluating the people’s attitude and
behavioral pattern just like the psychological response test
• Random sampling excluding the ratio of gender and age ※5 and 7-point scales are commonly used in Likert scale and those respondents exceeded
7 points have difficulty expressing their own point of view.
※Respondents are tended to avoid selecting two extremes if possible; 5-point scale,
therefore, may concentrate on 3 optional questionnaires, posing potential distortion in
3) Survey Scale
responses.
• Scale commonly used in socio-scientific factor
- Rating Scale, Likert’ Scale, Guttman’ Scale, etc.
• Examples of Likert’ Scale-based Scale
[<Table 4-8> Example of Likert-Based Scale]
Name of Index/Author (Year) Evaluation Item Scale

Ernst&Young G-20 E-ship Entrepreneurship 5-point scale (1-5)
Degree of economic
World Economic Forum 7-point scale (1-7)
freedom
German Socio-Economic Panel
Individual Risk Tendency 11-point scale (0-10)
(SOEP; Socio-Economic Panel)
Hurt, H.T., Joseph, K., & Cook,C.D.
Individual Innovativeness 5-point scale (1-5)
(1977)
Entrepreneurial orientation
Miller/Covin and Slevin(1989) 7-point scale (1-7)
(EO)
Ronald & Charles(1991) Consumer Innovativeness 7-point scale (1-7)
Individual Innovativeness in
Ritu and Joyesh(1998) 7-point scale (1-7)
IT Area

Appendix
Questionnaire to measure Global

Entrepreneurship Index
50 • Korea Entrepreneurship Foundation

4
Questionnaire to measure Global 5. Do you have any side job other than your main job? ·························· (
① Yes → go to 6 ② No → go to 8
)
Entrepreneurship Index
6. Is your side job related to your main job?
Ⅰ. General questions Very negative ··············································· Average ··············································· Very positive

① ② ③ ④ ⑤ ⑥ ⑦
Sex ① Male ② Female Age 1 9 Year

Marital 7. What is main reason you to have side job other than current job?(Choose
① Married ② Single Child ① Yes ② No
status two) ········································································································ ( )
Education ① Elementary school ② Secondary school ③ University ④ Graduate (Master, Ph.D)
① To earn more money ② To develop ability
③ To start up business ④ For hobby
⑤ For job turnover ⑥ Other (Specify )
Ⅱ. Job
4
4 4 8. What kind of job do your parents want you to have? ························· ( )
1. What is your current job? ········································································ ( )
① Self-employed, CEO ② Large company employee
③ Middle and venture company employee ④ Government officer (public officer, teacher, and solider)
⑤ Professional (medical doctor, lawyer, accountant etc.) ⑥ Researcher, university affiliate, professor
⑤ Professional (doctor, lawyer, accountant etc.) ⑥ Researcher, University affiliate, professor
⑦ Farmer and fisherman ⑧ Other (artist, athlete)
⑦ Farmer and fisherman ⑧ None (unemployed)
⑨ Other (artist, athlete) 4
9. What kind of job do you want for your child? ······································ ( )
2. Which level of income class are you?
Very low ······················································ Average ······················································ Very high
⑤ Professional (medical doctor, lawyer, accountant etc.) ⑥ Researcher, university affiliate, professor
① ② ③ ④ ⑤ ⑥ ⑦
3. Are you satisfied wth your current job?

Very negative ··············································· Average ··············································· Very positive Ⅲ. Education
① ② ③ ④ ⑤ ⑥ ⑦
10. Have you attended any entrepreneurship education from your elementary
4 4
4. What is your favorite occupation if you could do it all over again? ··· ( ) or secondary course?(Creativity, market economy principle etc.) ···· ( )
① Self-employed, CEO ② Large company employee ① Yes → go to 11 ② No → go to 12
⑤ Professional (medical doctor, lawyer, accountant etc.) ⑥ Researcher, University affiliate, professor

11. H ow do you think entrepreneurship education at your elementary or 18. Are you currently starting-up a business or did you experience start-up
secondary school ? (self-employed)? ······················································································ ( )
Very negative ··············································· Average ··············································· Very positive ① Yes → go to 19 ② No → go to 47
① ② ③ ④ ⑤ ⑥ ⑦
4 19. When did you start-up for the first? ···················································· ( )

12. Have you attended any start-up education from your university course? ( )
① 10s ② 20s ③ 30s ④ 40s ⑤ 50s ⑥ 60s
20. How many times did you start-up? ····················································· ( )

13. Are you satisfied with entrepreneurship education at your university?
4
Very negative ··············································· Average ··············································· Very positive 21. Identify your start-up areas ·································································· ( )
① ② ③ ④ ⑤ ⑥ ⑦
① Manufacturing ② S/W, game, app development
③ Professional service ④ General service
14. Have you attended any entrepreneurship and start-up education at ⑤ Franchise start-up ⑥ Succeed family business
vocational training/life long education course? ································· ( )
4
① Yes → go to 15 ② No → go to 17 22. What is your motivation to start-up? ··················································· ( )
① To earn more money ② To achieve social status
15. Have you attended any training to prepare future job turnover and start- ③ To use personal ability ④ To do favorite work
up preparation during your current job? ············································· ( ) ⑤ No alternative than start-up ⑥ Other (specify )
① Yes ② No
4
23. Did you experience any failure (stop) after start-up? ························· ( )
16. Do you think entrepreneurship and start up education at vocational ① Yes → go to 24 ② No → go to 27
training/ life long education is helpful?
4
Very negative ··············································· Average ··············································· Very positive 24. If so, what is the reason of failure (stop)? ··········································· ( )
① ② ③ ④ ⑤ ⑥ ⑦ ① To sell business ② Profitability is weakened
③ To do another business ④ Unexpected accident/ event
⑤ Personal reason ⑥ Lack of fund
Ⅳ. Start-up ⑦ Other (specify )
4
17. Do you intend or plan to start-up a business in the future? ············· ( ) 25. Did you start-up again after failure (stop)? ········································· ( )
① Yes ② No ① Yes → go to 26 ② No → go to 27

26. If you start-up again, how long did it take to start-up again after failure 32. Do you think that government's monopoly and cartel regulation are
4
(stop)? ······································································································· ( ) effective and implemented properly?
① Within 1 year ② 1~2 years Very negative ··············································· Average ··············································· Very positive
③ 2~3 years ④ 3~5 years ① ② ③ ④ ⑤ ⑥ ⑦
⑤ Over 5 years
33. Did you plan or engage in business to overseas customers? ·········· ( )

Ⅳ. Start-up
34. Was overseas market entrance easy?
27. Was establishment or start-up easy?
Very negative ··············································· Average ··············································· Very positive
① ② ③ ④ ⑤ ⑥ ⑦
① ② ③ ④ ⑤ ⑥ ⑦
4
35. What was the most difficult problem in overseas market entrance? ( )
28. D o you think that tax imposed on the operation of the business is
suitable? ① Language/cultural barrier ② Export related regulation
③ Lack of overseas entrance fund ④ Lack of overseas market information
⑤ Lack of competitiveness like technology
① ② ③ ④ ⑤ ⑥ ⑦
⑥ Difficulties in obtaining local market standard and certification
⑦ Other (specify )
29. Do you think that government-led start-up support program is helpful?
Very negative ··············································· Average ··············································· Very positive 36. Do you think that government's overseas market entrance support
① ② ③ ④ ⑤ ⑥ ⑦
program is helpful?
30. Was market entrance easy?
① ② ③ ④ ⑤ ⑥ ⑦
① ② ③ ④ ⑤ ⑥ ⑦
37. How did you get funding for start-up? ····························· (1st: ),(2nd: )
① Self ② Parents, relative, friend
31. What is the reason of difficulties of market entrance after start-up? ( )
③ Venture capital ④ Angel investors
① Rapid market change ② Market entrance cost ⑤ Bank and other financial institution ⑥ Government
③ Unfair entrance barrier ④ Despotism of existing large companies ⑦ Other
⑤ Other (specify )
38. Do you think that investment from VC or angel capital is easy?

① ② ③ ④ ⑤ ⑥ ⑦

39. Do you think it is easy to collect investment after listing to stock market Ⅵ. Culture
or M&A?
47. As for your country, do you believe that there is good systematic device
① ② ③ ④ ⑤ ⑥ ⑦
to protect people from social risks such as disease, aging, unemployment,
industrial disaster and poverty?
40. Do you think it is easy to procure start-up finance from government subsidy? Very negative ··············································· Average ··············································· Very positive
① ② ③ ④ ⑤ ⑥ ⑦
① ② ③ ④ ⑤ ⑥ ⑦
41. Did you plan or enter start-up incubating center during start-up process? 48. As for your country, do you think bureaucracy of government officers or
··················································································································· ( ) public officers is severe?
① Yes → go to 42 ② No → go to 47 Very negative ··············································· Average ··············································· Very positive

① ② ③ ④ ⑤ ⑥ ⑦
42. Do you think it is easy to enter start-up incubating center?

49. Do you think public officers in charge of start-up are efficient and effective
in carrying out their work?
① ② ③ ④ ⑤ ⑥ ⑦
① ② ③ ④ ⑤ ⑥ ⑦
43. Do you think start-up incubating center is helpful?
50. Do you think public officers in charge of start-up are kind to reply your
① ② ③ ④ ⑤ ⑥ ⑦
requests?
44. Did you plan technology transfer from outside or receive technology
① ② ③ ④ ⑤ ⑥ ⑦
transfer from outside during start-up process? ·································· ( )
45. Do you think technology transfer from outside is easy?

① ② ③ ④ ⑤ ⑥ ⑦
4
46. What is the main subject of technology transfer? ····························· ( )
① University ② Research institute ③ Venture capital
④ Large company ⑤ Overseas company ⑥ Other (specify )

Ⅶ. Personal and organizational awareness 9
I believe new technology can change the
world
① ② ③ ④ ⑤ ⑥ ⑦
I encourage new idea suggestion,

10 ① ② ③ ④ ⑤ ⑥ ⑦
improvement and innovation actively
51. Mark any corresponding level to the below items with you.
Corresponding level Corresponding level
Challenging spirit Leadership (self-initiative)
Very negative ← Average → Very positive Very negative ← Average → Very positive
I prefer to large investment with risk rather I want to think and behave independently to
1 ① ② ③ ④ ⑤ ⑥ ⑦ 1 ① ② ③ ④ ⑤ ⑥ ⑦
than safe but less profitable investment realize my own idea or vision.
I try even though success is unclear if I meet I do not like to be bothered by others in
2 ① ② ③ ④ ⑤ ⑥ ⑦ 2 ① ② ③ ④ ⑤ ⑥ ⑦
a meaningful or interesting task. setting my own goal.
I prefer to high income job or direct start-up I used to ask others' opinion to solve my
3 ① ② ③ ④ ⑤ ⑥ ⑦ 3 ① ② ③ ④ ⑤ ⑥ ⑦
rather than low income and stable job own problem.
When facing unclear situation without
I endeavor to form smooth human
answer, I dare to find solution alone or in 4 ① ② ③ ④ ⑤ ⑥ ⑦
4 ① ② ③ ④ ⑤ ⑥ ⑦ relationship with others.
team and had experiences of achieving good
results. 5 I can overcome various barriers effectively. ① ② ③ ④ ⑤ ⑥ ⑦
If I determine it necessary and important, I can carry out whatever difficult tasks
I start even though plan is not clear and 6 ① ② ③ ④ ⑤ ⑥ ⑦
5 ① ② ③ ④ ⑤ ⑥ ⑦ successfully.
am good at adapting to the progress of
circumstances
Corresponding level
I do not fear failure once change comes, and Value orientation
6 ① ② ③ ④ ⑤ ⑥ ⑦
am active to take chance Very negative ← Average → Very positive
I determine to stop resolutely if any work is I endeavor to perform any to the end even
7 ① ② ③ ④ ⑤ ⑥ ⑦ 1 ① ② ③ ④ ⑤ ⑥ ⑦
not effective or necessary though others say it would be impossible.
I am not daunted under competitive situation I am interested in developing technology and
8 ① ② ③ ④ ⑤ ⑥ ⑦ 2 ① ② ③ ④ ⑤ ⑥ ⑦
and work harder enjoying competition knowledge through new things.
I feel excitement on stories of future
9 ① ② ③ ④ ⑤ ⑥ ⑦ I like to perform challenging things from
specialists and have great interest in them 3 ① ② ③ ④ ⑤ ⑥ ⑦
which I can learn.
I have much interest in important current
10 ① ② ③ ④ ⑤ ⑥ ⑦ I like to perform tasks that my ability is
product or event that trigger future change 4 ① ② ③ ④ ⑤ ⑥ ⑦
recognized by others.
Corresponding level I want to avoid any task if its performance is
Creativity/ innovation 5 ① ② ③ ④ ⑤ ⑥ ⑦
Very negative ← Average → Very positive expected low.
1 I used to be called as unique ① ② ③ ④ ⑤ ⑥ ⑦ I feel more pride to be respected and
6 recognized by others instead of monetary ① ② ③ ④ ⑤ ⑥ ⑦
I find new and different method in doing reward.
2 ① ② ③ ④ ⑤ ⑥ ⑦
something
3 I am full of curiosity and imaginative ① ② ③ ④ ⑤ ⑥ ⑦ I feel more pride to contribute to others and
7 ① ② ③ ④ ⑤ ⑥ ⑦
social benefit instead of personal profit.
I used to solve problems by combining
4 ① ② ③ ④ ⑤ ⑥ ⑦
different perspectives
4
5 I like challenging unclear and hard questions ① ② ③ ④ ⑤ ⑥ ⑦ 52. What is your current job? ······································································· ( )
I am determined to solve problems with
6 ① ② ③ ④ ⑤ ⑥ ⑦ ① Self-employed, CEO ② Large company employee
endurance
I like to find new product/ service and enjoy ③ Middle and venture company employee ④ Government officer (public officer, teacher, and solider)
7 ① ② ③ ④ ⑤ ⑥ ⑦
to use it always ⑤ Professional (doctor, lawyer, accountant etc.) ⑥ Researcher, university affiliate, professor
I respect creative and innovative strategy
8 ① ② ③ ④ ⑤ ⑥ ⑦ ⑦ Farmer and fisherman ⑧ None (unemployed)
and idea and accept them actively
⑨ Other (artist, sports person)

53. Do you currently work at an organization with more than 2 employees? ( ) Corresponding level
Creativeness / innovation
① Yes → go to 54 ② No → finish questionnaire Very negative ← Average → Very positive
My organization has unique aspect different

1 from other organization in the operation ① ② ③ ④ ⑤ ⑥ ⑦
54. Mark any corresponding level to the below items with your organization. method.
My organization seeks new and different

Corresponding level 2 ① ② ③ ④ ⑤ ⑥ ⑦
methods in doing something.
Challenging spirit
Very negative ← Average → Very positive
My organization respects diverse
3 ① ② ③ ④ ⑤ ⑥ ⑦
My organization prefers to large investment personalities of individuals.
1 with risk rather than safe but less profitable ① ② ③ ④ ⑤ ⑥ ⑦
My organization respects various ideas
investment 4 ① ② ③ ④ ⑤ ⑥ ⑦
beyond stereotype .
My organization tends to invest large My organization tries to solve any unclear
2 resources to a task which high profit is ① ② ③ ④ ⑤ ⑥ ⑦ 5 ① ② ③ ④ ⑤ ⑥ ⑦
and unsolving problem to the end
expected even though it is risky
My organization performs tasks with a new
My organization prefers to behave activity 6 ① ② ③ ④ ⑤ ⑥ ⑦
problem solving perspective.
and audaciously to achieve target under
3 ① ② ③ ④ ⑤ ⑥ ⑦
unclear circumstances (rather than cautious M y o r ga n i z a t i o n i s e a g e r t o g i v e u p
and progressive approach) 7 competitive advantages in order to cope ① ② ③ ④ ⑤ ⑥ ⑦
with new environments
My organization is get used to find the
optimal solution through discussion and My organization actively accepts creative
4 ① ② ③ ④ ⑤ ⑥ ⑦ 8 ① ② ③ ④ ⑤ ⑥ ⑦
consultation when facing unclear problem and innovative strategy and ideas.
without answer.
My organization weighs high on R&D and
I f i t i s n e c e s s a r y a n d i m p o rt a n t , M y 9 ① ② ③ ④ ⑤ ⑥ ⑦
technical advantage and innovation.
organization starts even though plan is not
5 ① ② ③ ④ ⑤ ⑥ ⑦
clear and am good at adapting to the progress My organization acti vely encourages
of circumstances 10 new idea suggestion, improvement and ① ② ③ ④ ⑤ ⑥ ⑦
innovation.
My organization behave actively to take
6 market opportunity without fear of failure ① ② ③ ④ ⑤ ⑥ ⑦
once change is given.
M y o r ga n i z a t i o n d e t e r m i n e s t o s t o p
7 resolutely if any work is not effective or ① ② ③ ④ ⑤ ⑥ ⑦
necessary
My organization prefers challenging strategy

to a competitor instead of avoiding attack
8 ① ② ③ ④ ⑤ ⑥ ⑦
of the competitor and has very competitive
attitude.
My organization estimates and forecasts

9 ① ② ③ ④ ⑤ ⑥ ⑦
future situation frequently.
My organization is active in long-term

10 ① ② ③ ④ ⑤ ⑥ ⑦
investment to prepare future.

Corresponding level
Leadership (self-initiative)
Individual or team in our organization

1 performs works independently to realize idea ① ② ③ ④ ⑤ ⑥ ⑦
or vision.
In setting target in the organization,

2 autonomy and independence of individual ① ② ③ ④ ⑤ ⑥ ⑦
and team are guaranteed.
My organization uses relation with various

3 partners to achieve target and to solve ① ② ③ ④ ⑤ ⑥ ⑦
problems.
My organization reflects opinions of external

4 partners to corporate operation and strategy ① ② ③ ④ ⑤ ⑥ ⑦
establishment
My organization can overcome any imminent

5 ① ② ③ ④ ⑤ ⑥ ⑦
problems effectively
My organization can be successful to

6 ① ② ③ ④ ⑤ ⑥ ⑦
perform how hard tasks it may be.
Corresponding level
Value orientation
My organization has an environment to do

1 ① ② ③ ④ ⑤ ⑥ ⑦
the best to achieve performance.
My organization endeavors to find an

2 o p p o rt u n i t y o f n e w t e ch n o l o g y a n d ① ② ③ ④ ⑤ ⑥ ⑦
knowledge.
My organization likes to perform challenging

3 ① ② ③ ④ ⑤ ⑥ ⑦
things from which we can learn
My organization understands performance

4 ① ② ③ ④ ⑤ ⑥ ⑦
target of individual or team.
My organization wants to avoid any task if its Date of issue January 31, 2015
5 ① ② ③ ④ ⑤ ⑥ ⑦
performance is expected low.
Publishers Chul-Joo, Hwang
My organization is actively engaged in
6 ① ② ③ ④ ⑤ ⑥ ⑦ Publisher Korea Entrepreneurship Foundation
donation and charity activities.
305/16, Seocho-daero 45-gil, Seocho-gu, Seoul, Korea
My organization endeavors to create new
7 ① ② ③ ④ ⑤ ⑥ ⑦
values to local society. Phone : 82 2 2156 2282 | Fax : 82 2 2156 2290
http://www.koef.or.kr
Design & Printing Conore AD
※ This book is a reprint, so please do not duplicate the work that is protected by copyright.
To use all or part of the contents of this book must obtain prior written consent of the copyright holder.
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Global

I. Research Background and Purpose 4

II. Theoretical Background 7

III. Global Entrepreneurship Index 18

IV. Survey Composition of Global Entrepreneurship 46

▒ KEF Education&Research Team

• Gi-Hyun Kum (Acting director)

• A typical example of entrepreneurship is revealed through business start-up,

59% (EC, 2013)

[New investment (including enterprise establishment investment company)]

from elementary school to college and career training course

4 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 5

- J.A. Schumpeter in 1930 emphasized the entrepreneurial function affecting

- After J.A. Schumpeter, many studies have been undertaken particularly

6 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 7

Entrepreneurship: An effective action to involve a new. This new

8 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 9

• Entrepreneurship at the organizational level focused on the organizational

- Samsung Economic Research Institute (2004)

10 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 11

12 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 13

- Status of Korea countries (including the EU)

- Entrepreneurial attitude, capability and aspiration were composed of 5,

14 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 15

- Indicators related to entrepreneurship determinant provided by OECD

• Key Issues in Entrepreneurship Indicator

- Failed to reflect the balance between the entrepreneurial process and

16 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 17

• Focused on comparing the personal and behavioral characteristics, value

“The practical capabilities to initiatively capture and challenge

future, and ultimately create a new value through the innovative

Challenging spirit Challenging spirit

• (What) Creating a new value  Creativeness

• Social environment is composed of entrepreneurial culture and

18 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 19

Education • Components of Individual and Organizational Recognition

[Components of Individual/Organizational Recognitive Factor]

capability; therefore the entrepreneurship training experience is important. (openness)

• The career/lifelong education is focused on company practical education, ① Challenging Spirit

20 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 21

Tended to take a risk of uncertainty and risk to

② Creativeness/Innovativeness Agreed the fact that new technology (process,

22 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 23

[Component of Value Orientation]

Personal Characteristics Behavior Characteristics Value and Belief • Start-up

24 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 25

26 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 27

28 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 29

- Technical Transfer Organization (TLO) such as Israel YEDA and industry-

Key Factor Sub-Factor

• Social recognition on failure

• Recognition career; therefore, one’s preferred jobs are surveyed.

30 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 31

• Components of Entrepreneurship Infrastructure Factor Existing Entrepreneurship Index

[Components of Entrepreneurship Infrastructure Factor]

• Organization - No relative index is set up on research, creation, employment in individual

governmental entrepreneurship organization are considered. Sub-Factor

as an index. • Entrepreneurship education and

32 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 33

• Self-employment ratio & Young Limited)

34 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 35

36 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 37

38 • Korea Entrepreneurship Foundation Global Entrepreneurship Index(GEI) Report • 39

• A typical example of entrepreneurship is revealed through business start-up,

- J.A. Schumpeter in 1930 emphasized the entrepreneurial function affecting

- After J.A. Schumpeter, many studies have been undertaken particularly

• Entrepreneurship at the organizational level focused on the organizational

- Samsung Economic Research Institute (2004)

- Status of Korea countries (including the EU)

- Entrepreneurial attitude, capability and aspiration were composed of 5,

- Indicators related to entrepreneurship determinant provided by OECD

• Key Issues in Entrepreneurship Indicator

- Failed to reflect the balance between the entrepreneurial process and

• Focused on comparing the personal and behavioral characteristics, value

• (What) Creating a new value  Creativeness

• Social environment is composed of entrepreneurial culture and

Education • Components of Individual and Organizational Recognition

• The career/lifelong education is focused on company practical education, ① Challenging Spirit

Personal Characteristics Behavior Characteristics Value and Belief • Start-up

- Technical Transfer Organization (TLO) such as Israel YEDA and industry-

• Recognition career; therefore, one’s preferred jobs are surveyed.

• Components of Entrepreneurship Infrastructure Factor Existing Entrepreneurship Index

• Organization - No relative index is set up on research, creation, employment in individual

as an index. • Entrepreneurship education and

• Self-employment ratio & Young Limited)

- Quantitative index on entrepreneurship infrastructures that was never

• Necessity of Normalization 5) Differentiation from the Currently Existing Entrepreneurship Index

1) Selection of Survey Subject • Size of Participants

• Scale commonly used in socio-scientific factor

- Rating Scale, Likert’ Scale, Guttman’ Scale, etc.

• Examples of Likert’ Scale-based Scale