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Wealth, Poverty Driving Entrepreneurship

A global study finds business startups decline as weaker economies develop.
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Both wealth and poverty appear to be drivers of entrepreneurial activity around the world, a recent global study shows.

In a country-by-country comparison, researchers found the number of business startups were highest in both high- and low-income regions, according to the ninth annual Global Entrepreneurship Monitor. By contrast, entrepreneurial activity tended to decline in middle-income countries where jobs were more plentiful.

While early-stage ventures in wealthy countries tended to be opportunity-driven, those in poorer countries were more likely to be launched out of necessity, researchers found.

"For lower income countries, a decline in the rate of early-stage activity may reflect economic progress and more job opportunities," Niels Bosma, an Utrecht University researcher, said in a statement.

Last updated: Jan 18, 2008




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