Entrepreneurial climate and self-perceptions about entrepreneurship: a country comparison using fsQCA with dual outcomes

This study investigated the relationship between entrepreneurial climate (EC) and self-perceptions about entrepreneurship (SPaE). The variables and data were derived from the Global Entrepreneurship Monitor (GEM) dataset and framework. Specifically, the study examined variables closely related to the GEM concepts of entrepreneurial capacity and preferences across 54 countries. Fuzzy-set qualitative comparative analysis (fsQCA) was conducted to investigate associations between EC and SPaE. Three condition variables described EC: economic stage of development, entrepreneurial framework conditions, and entrepreneurial status. Four items described SPaE: perceived start-up opportunities, perceived capabilities, fear of failure, and entrepreneurial intention. Two forms of single outcome measures were constructed from the four items that described SPaE. A standard factor analysis-based score yielded the outcome SPaEF. Fuzzy cluster analysis produced a two-cluster-based outcome SPaEC. Having two outcomes referring to the same concept (SPaE) leads to discussion on what should be done to facilitate “same concept” based analyses using fsQCA. The findings open up discussion on the efficacy of fsQCA as regards its sensitivity to slight changes in the outcome. Practical applied issues surrounding entrepreneurship (EC and SPaE) are also discussed.