Degree of entrepreneurship : an econometric analysis using the ordinal probit model

Abstract

The purpose of this paper is to develop an ordinal probit model of entrepreneurship which would enable us to calibrate the degree of entrepreneurship of an individual in appropriate samples and to perform multivariate analysis on the determinants of entrepreneurship. In addition, sensitivity analysis could be performed on the significant influences to provide policy-makers with useful information in designing and implementing policies to promote enterprise development. As an illustration, the model is estimated using a sample of 500 adult Singaporeans in full-time employment. The significant socio-demographic characteristics found were, in descending order of importance, presence of role model in the family, sibling rank, gender, education and number of children.