Business dynamism in the world economy
The creation and growth of new enterprises and, on the other hand, their decline and market exit are crucial factors of business dynamism and economic growth. Thus, business dynamism is an important aspect in the market chain and productivity of an economy, as well as a trigger for market reforms. T...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2020-09-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13937/PPM_2020_03_Virglerova.pdf |
| _version_ | 1811331862914662400 |
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| author | Zuzana Virglerova Felice Addeo Eliska Zapletalikova |
| author_facet | Zuzana Virglerova Felice Addeo Eliska Zapletalikova |
| author_sort | Zuzana Virglerova |
| collection | DOAJ |
| description | The creation and growth of new enterprises and, on the other hand, their decline and market exit are crucial factors of business dynamism and economic growth. Thus, business dynamism is an important aspect in the market chain and productivity of an economy, as well as a trigger for market reforms. The aim is to analyze business dynamism using Global Competitiveness Index 4.0 and its variables worldwide and to verify the relationship between business dynamism in the EU states and economic characteristics such as Valued added at factor cost, Enterprise Birth Rate and Enterprise Death Rate. Data were collected from the 2019 Global Competitiveness Report and from the EUROSTAT database, using the most recently updated source for each indicator. The 11th pillar of the Global Competitiveness Index, focused on business dynamics, and a set of indicators were analyzed using PCA to verify if all the variables are effective representatives of the concept. It was found out that the pillar does not effectively represent the concept of business dynamism in case of the EU countries; therefore the new pillar was constructed. A strong and statistically significant correlation between business dynamism and Value Added was confirmed. A relationship between business dynamism and other economic indicators was not proven. From a territorial point of view, Oceania achieved the best overall result in the analyzed field. The process of starting a new business is the most challenging in terms of start-up costs in South America. By contrast, the EU has reached the best result in this process. |
| first_indexed | 2024-04-13T16:28:12Z |
| format | Article |
| id | doaj.art-e18620a4904c4e62aaba9df499979be3 |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-04-13T16:28:12Z |
| publishDate | 2020-09-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-e18620a4904c4e62aaba9df499979be32022-12-22T02:39:42ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672020-09-0118316016910.21511/ppm.18(3).2020.1413937Business dynamism in the world economyZuzana Virglerova0https://orcid.org/0000-0002-7957-9216Felice Addeo1https://orcid.org/0000-0001-7072-7019Eliska Zapletalikova2https://orcid.org/0000-0002-0291-4282Ph.D., Tomas Bata University in Zlín, Faculty of Management and EconomicsUniversity of Salerno, Department of Political and Communication ScienceTomas Bata University in Zlín, Faculty of Management and EconomicsThe creation and growth of new enterprises and, on the other hand, their decline and market exit are crucial factors of business dynamism and economic growth. Thus, business dynamism is an important aspect in the market chain and productivity of an economy, as well as a trigger for market reforms. The aim is to analyze business dynamism using Global Competitiveness Index 4.0 and its variables worldwide and to verify the relationship between business dynamism in the EU states and economic characteristics such as Valued added at factor cost, Enterprise Birth Rate and Enterprise Death Rate. Data were collected from the 2019 Global Competitiveness Report and from the EUROSTAT database, using the most recently updated source for each indicator. The 11th pillar of the Global Competitiveness Index, focused on business dynamics, and a set of indicators were analyzed using PCA to verify if all the variables are effective representatives of the concept. It was found out that the pillar does not effectively represent the concept of business dynamism in case of the EU countries; therefore the new pillar was constructed. A strong and statistically significant correlation between business dynamism and Value Added was confirmed. A relationship between business dynamism and other economic indicators was not proven. From a territorial point of view, Oceania achieved the best overall result in the analyzed field. The process of starting a new business is the most challenging in terms of start-up costs in South America. By contrast, the EU has reached the best result in this process.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13937/PPM_2020_03_Virglerova.pdfenterpriseGlobal Competitiveness Indexproductivityvalue added at factor cost |
| spellingShingle | Zuzana Virglerova Felice Addeo Eliska Zapletalikova Business dynamism in the world economy Problems and Perspectives in Management enterprise Global Competitiveness Index productivity value added at factor cost |
| title | Business dynamism in the world economy |
| title_full | Business dynamism in the world economy |
| title_fullStr | Business dynamism in the world economy |
| title_full_unstemmed | Business dynamism in the world economy |
| title_short | Business dynamism in the world economy |
| title_sort | business dynamism in the world economy |
| topic | enterprise Global Competitiveness Index productivity value added at factor cost |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13937/PPM_2020_03_Virglerova.pdf |
| work_keys_str_mv | AT zuzanavirglerova businessdynamismintheworldeconomy AT feliceaddeo businessdynamismintheworldeconomy AT eliskazapletalikova businessdynamismintheworldeconomy |