Intervening variables, positioned between the independent and dependent variables, have the potential to influence the connection between them. In the GEM study, examples of intervening variables include individual characteristics such as age, education level, entrepreneurial experience, and risk tolerance, which can shape how individuals respond to government policies or initiatives promoting entrepreneurship. Additionally, access to resources like capital, mentorship opportunities, and professional networks can significantly impact the success of entrepreneurial ventures, with policies facilitating access indirectly influencing entrepreneurial activity. Moreover, the business environment, encompassing government regulations, infrastructure quality, and cultural attitudes towards entrepreneurship, can create a more or less favorable context for entrepreneurs.

On the other hand, extraneous variables, although not the primary focus of the study, are external factors that could potentially influence the results. In the GEM study, examples of extraneous variables include economic conditions such as GDP growth, unemployment rates, and inflation, which can affect the viability and attractiveness of entrepreneurship. Furthermore, political stability factors like corruption levels, government effectiveness, and political risk can introduce uncertainty that may deter entrepreneurial activity. Cultural factors, such as deeply ingrained values surrounding work$-$life balance, risk aversion, and the perception of entrepreneurship, can also impact individuals' willingness and success in pursuing entrepreneurial ventures.

Moderating variables, distinct in their role of influencing the strength or direction of the relationship between independent and dependent variables, play a unique role in the GEM study. For instance, the level of economic development can moderate the impact of government policies on entrepreneurial activity, with a potentially more pronounced effect in less developed countries where the government plays a larger role in economic development. Similarly, cultural values emphasizing individualism, achievement, and innovation may strengthen the correlation between entrepreneurial activity and economic well$-$being. Additionally, the effectiveness of government policies in stimulating entrepreneurship can be influenced by the quality of the bureaucracy and its capacity to implement and enforce these policies.