The propensity to business startup: Evidence from Global Entrepreneurship Monitor (GEM) data in Saudi Arabia

The objective of this study is to assess the determining factors of entrepreneurial business startup in Saudi Arabia from an eclectic perspective. Based on Global Entrepreneurship Monitor (GEM) data of 2000 Saudi Arabian respondents, the study analyzes a multitude of individual factors which are classified into four groups: (a) financial resources; (b) social legitimacy; (c) entrepreneurial personality; and (d) entrepreneurial competencies. Gender and education are moderating variables influencing the relationship while age is a control variable using binary logistic regression technique. Out of ten hypotheses, only four hypotheses, namely income, fear of failure, perception of high status and knowledge of other entrepreneurs, have a significant relationship with the possibility of a business startup. Implications of these findings and directions for future research are discussed.