Self-study
Researchers have found that the percentage of people who start new businesses is much higher in countries with high per capita income than in countries with moderate per capita income. ████ ██ ██ ██ ████████ █████ ████ █████████████ ██ █████ ███ █████████████ █████████ █████ ██████████ ██ ████ █████████ ██ █████████ ████████ ██████████████ ███ █████ ███ ████ ████ █████████████ ██ ███████████ ██████████ █████████████ ████████ ███ ███████████ ████ █████ ████ ███ ██████████ ██ ██████ ███ █████ ██████████ ██ ████ ██████ ██ ██████████ █████████ ████ ██ ███████████ █████
"Surprising" Phenomenon
Why is the percentage of people starting businesses higher in low-income countries than in high-income ones, even though there are more perceived business opportunities in high-income countries, where entrepreneurs often start businesses to take advantage of these opportunities?
Objective
The correct answer will be a hypothesis explaining the difference in motivations for starting a business in high- versus low-income countries. While entrepreneurs in high-income countries often start businesses take advantage of abundant perceived business opportunities, entrepreneurs in low-income countries must have a different motivation.
3.
Which one of the following, ██ █████ █████ ████ ████ ██ ███████ ███ ████████████ ██████████ ████████
a
In both high- ███ ██████████ ██████████ ████ ████ ████ ██ ███ ██████████ ██████ ██ ███████ ████ ███ ██ ████ ████ ███ ██ ███ ███████
This does not provide a difference between the reasons for starting a business in high-income countries versus in low-income countries. Instead, it gives us a similarity in the expected job creation of new business in both high- and low-income countries.
b
Many governments of ███████████ █████████ ███████ ██████████ ██ ███████████ ███ ████ ██ █████ ███████████ ███ ████ ███ ███████████ ██ ██████████ █████████ ██ ███
This adds confusion by suggesting why people in low-income countries would be less likely to start a business, instead of explaining why they are actually more likely to do so than those in high-income countries.
c
The percentage of ███ ██████████ ████ ████ ██████ █ ███ █████ ██ █████ ███████ ██ █████████ ██ ██████ ██ ██████████ █████████ ████ ██ ███████████ ██████████
We need a difference in the reasons for starting a business in low-income versus high-income countries. Instead, (C) gives us a similarity in the failure rates of business in low- and high-income countries.
d
In high-income countries, ████ █████████████ ███ █████ ██████████ ██ ████ █████████ ██ █████████ ████████ █████████████ ████ ████████ ████ ███ █████████████ ████ █████████
Whether the perceived business opportunities in high-income countries are illusory does not explain why the percentage of people starting businesses is higher in low-income countries. We need an alternate reason for starting a business in low-income countries.
e
In low-income countries, ████ █████████████ █████ ██████████ ███████ ███ █████ ██████████ ███████ ███ ██████ ██████ ██ ███████████████
This explains why more people start businesses in low-income countries than in high-income ones: in low-income countries, entrepreneurs often start businesses due to limited job options, rather than because of abundant business opportunities.