Ratio Institute

About: Ratio Institute is a facility organization based out in Stockholm, Sweden. It is known for research contribution in the topics: Entrepreneurship & Productivity. The organization has 58 authors who have published 190 publications receiving 7216 citations.

Gazelles as job creators: a survey and interpretation of the evidence

Abstract: It is often claimed that small and young firms account for a disproportionately large share of net employment growth. We conduct a meta-analysis of the empirical evidence regarding whether net employment growth rather is generated by a few rapidly growing firms—so-called Gazelles—that are not necessarily small and young. Gazelles are found to be outstanding job creators. They create all or a large share of new net jobs. On average, Gazelles are younger and smaller than other firms, but it is young age more than small size that is associated with rapid growth. Gazelles exist in all industries. They seem not to be overrepresented in high-technology industries, but there is some evidence that they are overrepresented in services.

Free to Trust? Economic Freedom and Social Capital

Abstract: We present new evidence on how generalized trust is formed. Unlike previous studies, we look at the explanatory power of economic institutions, we use newer data, we incorporate more countries, and ...

The institutions of economic freedom and entrepreneurship: evidence from panel data

Abstract: This paper provides new evidence on the determinants of entrepreneurship across countries. The paper investigates the relationship between the institutional setting, in terms of economic freedom, and entrepreneurship, measured by self-employment, in a panel data setting covering 23 OECD countries for the period 1972–2002. The measure of economic freedom includes five aspects: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and the regulation of credit, labour and business. The empirical findings show that a smaller government sector, better legal structure and security of property rights, as well as less regulation of credit, labour and business tend to increase entrepreneurship.

Consequences of cultural practices for entrepreneurial behaviors

Abstract: Although national culture is an important regulator of entrepreneurship, there is a dearth of studies that: (1) explore the effects of national cultural practices on entrepreneurial behaviors by individuals; (2) use appropriate multilevel research designs; (3) consider the effects of culture on different entrepreneurial behaviors, such as entry and post-entry growth aspirations. We combined Global Entrepreneurship Monitor (GEM) and Global Leadership and Organizational Behavior Effectiveness (GLOBE) data from 42 countries for 2005–2008 to address these gaps, using a multilevel design. We found societal institutional collectivism practices negatively associated with entrepreneurial entry, but positively associated with entrepreneurial growth aspirations. Uncertainty avoidance practices were negatively associated with entry but not with growth aspirations, and performance orientation practices were positively associated with entry. Our analysis highlights the differential effects of cultural practices on entrepreneurial entry and growth aspirations, and demonstrates the value of multilevel techniques in analyzing the effect of culture on entrepreneurship.