Determinants of Entrepreneurship: Gender Differences in Korea

Entrepreneurship is known as one of the drivers of economic growth with a degree of uncertainty. Although there is an increase in interests in entrepreneurship in Korea, there have been few empirical studies on measuring the level of entrepreneurship and its determinants in Korea due to the lack of survey and data. However, GEM survey in 2011 may turn out that the likelihood for being an entrepreneur is maximized when the entrepreneur is around 40 years old with male entrepreneurs more likely to start a new business. In addition, the probability to be an entrepreneur is positively correlated with household income and negatively with work status such as unemployed, retired or students. ‘Fear of Failure’ has a significantly negative relationship only with male entrepreneurial activity. Also political strategies should be implemented that could increase the ratio of entrepreneurs who take advantage of a particular business opportunity. More specifically, the burden on entrepreneurs induced by involuntary bankruptcy should be alleviated in order to lessen the fear of failure. More business education on entrepreneurial activity should be provided in order to raise the level of perceiving business opportunities and being confident on one’s skill.