What does this research mean for the field?

The relationship between business cycle fluctuations and entrepreneurial entry depends on the startup's level of innovativeness, with discontinuously innovative and imitative entry being counter-cyclic, while incrementally innovative entry is pro-cyclic, and these effects vary by a country's level of economic development. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To examine how business cycle fluctuations influence entrepreneurial entry across varying degrees of innovation and national economic development levels.

September 14, 2026Small Business EconomicsOpen Access

Innovative entrepreneurial entry over the business cycle: variation by form of innovation and country economic development

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Authors

PSPaul Steffens KKKim Klyver

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Overview

Cross-national longitudinal study reveals how business cycles shape startup entry patterns across 66 countries, highlighting distinct mechanisms for radical versus incremental innovation.

Key Points

To examine how business cycle fluctuations influence entrepreneurial entry across varying degrees of innovation and national economic development levels.
Analyzed Global Entrepreneurship Monitor (GEM) data tracking entrepreneurial entry across 66 countries from 2003 to 2018.
Evaluated entry patterns across major macroeconomic events, including the recovery from the dot-com crash and the Global Financial Crisis.
Discontinuously innovative entry exhibits a counter-cyclic disruption pattern, increasing during economic downturns.
Incrementally innovative entry aligns with a pro-cyclic prosperity pull, whereas imitative entry follows a counter-cyclic recession push, with both effects moderated by a country's level of economic development.

Cite This Study

Steffens et al. (2026) studied this question.

synapsesocial.com/papers/6aa7b3ee0926e14a848b3440 https://doi.org/10.1007/s11187-026-01270-z

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September 14, 2026Small Business EconomicsOpen Access

Innovative entrepreneurial entry over the business cycle: variation by form of innovation and country economic development

View Full Paper

Ask AI

Bookmark

Authors

PSPaul Steffens KKKim Klyver

Discussion

Member takes

Overview

Cross-national longitudinal study reveals how business cycles shape startup entry patterns across 66 countries, highlighting distinct mechanisms for radical versus incremental innovation.

Key Points

To examine how business cycle fluctuations influence entrepreneurial entry across varying degrees of innovation and national economic development levels.
Analyzed Global Entrepreneurship Monitor (GEM) data tracking entrepreneurial entry across 66 countries from 2003 to 2018.
Evaluated entry patterns across major macroeconomic events, including the recovery from the dot-com crash and the Global Financial Crisis.
Discontinuously innovative entry exhibits a counter-cyclic disruption pattern, increasing during economic downturns.
Incrementally innovative entry aligns with a pro-cyclic prosperity pull, whereas imitative entry follows a counter-cyclic recession push, with both effects moderated by a country's level of economic development.

Cite This Study

Steffens et al. (2026) studied this question.

synapsesocial.com/papers/6aa7b3ee0926e14a848b3440 https://doi.org/10.1007/s11187-026-01270-z

View Full Paper

Ask AI

Bookmark