New business capacity of developed, developing and least developing economies: inspection through state-of-the-art fuzzy clustering and PSO-GBR frameworks

It is essential to validate whether a nation's economic strength always transpires into new business capacity. The present research strives to identify the key indicators to the proxy new business ecosystem of countries and critically evaluate the similarity through the lens of advanced Fuzzy Clustering Frameworks over the years.

The authors use Fuzzy C Means, Type 2 Fuzzy C Means, Fuzzy Possibilistic C Means and Fuzzy Possibilistic Product Partition C Means Clustering algorithm to discover the inherent groupings of the considered countries in terms of intricate patterns of geospatial new business capacity during 2015–2018. Additionally, the authors propose a Particle Swarm Optimization driven Gradient Boosting Regression methodology to measure the influence of the underlying indicators for the overall surge in new business.

The Fuzzy Clustering frameworks suggest the existence of two clusters of nations across the years. Several developing countries have emerged to cater praiseworthy state of the new business ecosystem. The ease of running a business has appeared to be the most influential feature that governs the overall New Business Density.

It is of paramount practical importance to conduct a periodic review of nations' overall new business ecosystem to draw action plans to emphasize and augment the key enablers linked to new business growth. Countries found to lack new business capacity despite enjoying adequate economic strength can focus effectively on weaker dimensions.

The research proposes a robust systematic framework for new business capacity across different economies, indicating that economic strength does not necessarily transpire to equivalent new business capacity.