The global entrepreneurship index as a benchmarking tool? Criticisms from an efficiency perspective
Based on an efficiency analysis of the Global Entrepreneurship Index (GEI), the purpose was to demonstrate that the Key Performance Indicators’ analysis leads to a misinterpretation of the dynamics of National Systems of Entrepreneurship (NSEs). This might hamper the formulation of sound initiatives in other economies, with relevant implications for developing countries.
This study categorized GEI indicators into output and input indicators. Following this procedure, each dimension was analyzed separately and then compared to each other, considering countries’ productivity rates. The main focus is given to the case of the US, the usual benchmark for NSEs and leader in the GEI Index. Lastly, a taxonomy of NSEs according to their efficiency levels was developed.
The findings of the analysis demonstrates that innovation-driven economies with lower positions in GEI ranking often have higher productivity rates when compared to economies with higher positions in GEI ranking. Specifically, the US appears not to be a good benchmark in terms of NSE efficiency.
The study’s approach is limited in scope by data availability on NSEs and the use of GEI, a representation of aggregate patterns of country-level entrepreneurial dynamics. More refined data are needed in order to clarify some insights from this research.
The perception of systemic efficiency should be considered more thoroughly when designing dedicated entrepreneurship-oriented policies in other countries that aim at establishing a more vibrant entrepreneurial system while facing resource constraints.
Simplistic views of systemic aspects may hamper the formulation of sound entrepreneurship-oriented initiatives with particularly relevant implications for public policy in laggard economies.
The value of this article relies on applied a simple metric – efficiency ratio – order than, e.g. data envelopment analysis to portray a key issue related to the interpretation of supranational rankings related to the entrepreneurship ecosystem make mainly by policymakers and scholars that is: pick the 1st one, follow the leader.