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New Zealand's perfect storm of entrepreneurship and economic development

Frederick, H. and Monsen, Erik (2011) New Zealand's perfect storm of entrepreneurship and economic development. Small Business Economics, 37 (2). pp. 187-204. ISSN 0921-898X

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Abstract

Applying a grounded-theory approach to analyzing the Global Entrepreneurship Monitor (GEM) data, we attempt to explain why New Zealand exhibits only a moderate level of economic development despite its high level of entrepreneurship. By statistically analyzing why 34 other countries in the 2005 GEM dataset exhibit small deviations from the classical quadratic curvilinear relationship between entrepreneurship and economic development, we develop a better understanding of the entrepreneurial framework conditions underlying New Zealand’s large deviation from this trend line. Based on our findings from the GEM data we make policy recommendations that could aid in moving New Zealand (and other countries) closer toward the trend line and thus promote economic development.