GEM Case Solution & Answer

GEM Case Solution


GEM (Global Entrepreneur Study) has been adopted by different project directors, in order to assess the effect of entrepreneurial ventures on the economy’s wealth and value creation. Through the previous research, it has been observed that the GEM research is an ongoing process, which not yet provided a conclusive conceptual model. The study aims at developing a conceptual framework, which could provide strategies for enhancing the entrepreneurial activities. The case study addresses research question related to the impact of using national experts and the study results.

To analyze the GEM study, the dependent variables have been taken as the economic output state, which is measured through the country’s Gross Domestic Product (GDP), the formation of jobs and the business dynamics (firms, jobs). The independent variables of the GEM study include the policies and initiatives taken by the government to promote entrepreneurial activity, the general national framework conditions, entrepreneurial-framework conditions and the entrepreneurial capacity.

To control the variables in conducting the causal experiment, the government agencies and offered programs are introduced to enhance the entrepreneurship and access to educational services. The data has been gathered from nine nations, in order to accommodate the lacked control in exogenous variables. The research design was based on simple random sampling, whereby the researcher gathered information in two rounds through the adult population surveys, conducted in different countries. A total of 1000 surveys were conducted with randomly selected adult population. The survey was administered through phone, face-to-face and interviews with 4-39 national experts in order to collect for measuring the entrepreneurial activity and attitude.

Case Study: A Gem of a Study

Global Entrepreneur Monitor (GEM) is an organization assigned with researching ways to stimulate entrepreneurship activity during phases of economic decline. The Global Entrepreneur Monitor (GEM) study was organized by many project directors who defined entrepreneurship as “any attempt at new business or new venture creation, such as self-employment, a new business organization, or the expansion of an existing business, by an individual, a team of individuals, or an established business” (Schindler, 2019). The project directors advised the following while using Global Entrepreneur Monitor (GEM): promoting entrepreneurship in a particular age group, making sure resources are there for women to participate in the entrepreneurship process, training opportunities, developing a society that creates, validates, and promotes entrepreneurship, and among others.

The Kauffman Center for Entrepreneurial Leadership (Babson College) and the London Business School worked with each other to deliberate on Global Entrepreneur Monitor (GEM) research, and they found that the research design was missing control of extraneous variables. This information was located from the data that was taken to use from the research from nine nations. The Global Entrepreneur Monitor (GEM) study researchers concluded that the results would prove or disprove a new conceptual model which would forecast economic growth through entrepreneurship activity.

The Global Entrepreneur Monitor (GEM) research is still ongoing, and the new conceptual model is not conclusive. The Global Entrepreneur Monitor (GEM) study will continue to issue a conceptual framework to establish strategies to enhance entrepreneurship activity. The following discussion questions will provide answers on the Global Entrepreneur Monitor (GEM) study variables, the impact of using national experts (key informants), and the impact of the study results.

Independent and Dependent Variables in the GEM Study

Johar (2015) states, in an experiment, the independent variable is the variable that is varied or manipulated by the researcher, and the dependent variable is the response that is measured. In the GEM study, The dependent variable is the economic output state by measuring the Gross Domestic Product (GDP) and job formation and the business dynamics (firms, jobs).

Schindler defines “the dependent variable (DV) is of primary interest to the researcher, it is measured, predicted, or otherwise monitored and is expected to be affected by manipulation of an independent variable (IV), another variable of primary interest” (Schindler, 2019, p. 12). The independent variables are the government policies and initiatives that will promote entrepreneurial activity, the entrepreneurial framework conditions, the general national framework conditions, and the entrepreneurial capacity.

Using Exhibit C-Gem 1-1 Conceptual Model (Schindler, 2019, p. 509), the study’s dependent variables could be confirmed by locating the researchers’ prediction of economic growth (GDP, jobs) and business dynamics on the model. Business dynamics (firms, jobs) are included in the study’s dependent variables instead of an independent variable because of the researchers’ theory of the creation, growth, termination, and the reduction of firms and jobs.

The study’s independent variables are shown in Exhibit C-Gem 1-1 Conceptual Model as promoting entrepreneurial activity, the entrepreneurial framework conditions, the general national framework conditions, and the entrepreneurial capacity. The independent variables in the GEM study are myriad, and they are included in Exhibit C-Gem 1-1 broken down by propositions and thoroughly researched by the project directors of the Global Entrepreneurship Monitor (GEM), researchers at the Kauffman Center for Entrepreneurial Leadership (Babson College) and the London Business School.

Variable Control in a Causal Study

A causal study attempts to ascertain whether a variable affects or changes another variable (Jeffreys 2018).  A causal study is an experimental study; therefore, controlling the variables is important to the experiment.  For this study, government agencies created and offered programs designed to increase entrepreneurship and increased access to educational services.  To accommodate for the lack of control of extraneous variables, data was used from nine nations.  The research design sought to determine whether access to programs, education, and promotion affected entrepreneurship growth in countries involved in the study.  In other words, researchers measured whether positive interest in entrepreneurship increased with more promotion, programs, and education offered by government agencies.

A causal study controls the variables to measure the effect on other variables.  Unlike a descriptive study, a causal study experiments with variables in an attempt to discover how manipulation of variables changes other variables.  A descriptive study performs a cross-sectional or longitudinal study and does not generally manipulate the variables (Jeffreys 2018).  A causal study, however, manipulates the variables to ascertain the degree of impact on other variables.  This study was conducted in a field environment; in other words, this study was performed outside of a lab setting without total control of factors potentially influencing the variables………………..

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