TY  - GEN
AB  - This paper explores the relationship between formal institutions and entrepreneurship. Using the international data from the Global Entrepreneurship Monitor (GEM) and the Worldwide Governance Indicators (WGI) projects, we show that formal institutions have a different impact on early-established and mature entrepreneurial activity rates. The relationship between formal institutional dimensions (rule of law, control of corruption, regulatory quality) and two entrepreneurial activity rates (total early-stage entrepreneurial activity and established business ownership rates) are estimated. We theorize that formal institutions create necessary conditions where both early established and mature entrepreneurship operate. Since entrepreneurship depends not only on the institutional environment but also on the stage of economic development, we conduct a cross-country analysis, including two groups of countries such as efficiency-driven and innovation-driven economies. Our empirical results confirm that in efficiency-driven countries the relationship between formal institutions and the TEA rate is more intense, while in innovation-driven countries this relationship is stronger between formal institutions and the established business ownership rate. We also discover that the rule of law plays the most important role in relation to entrepreneurial activities, meanwhile in the case of mature entrepreneurship in efficiency-driven economies; regulatory quality turns out to be more important.
AU  - Tsatsenko, Natalia
AU  - Ibrahimova, Ganira
DA  - 2021
DO  - 10.25819/ubsi/9634
KW  - Entrepreneurship
KW  - Formal institutions
KW  - Rule of law
KW  - Regulatory quality
KW  - Control of corruption
KW  - Global Entrepreneurship Monitor (GEM)
KW  - World Governance Indicators (WGI)
KW  - Formale Institutionen
KW  - Unternehmertum
KW  - Rechtsstaatlichkeit
KW  - Regulatorische Qualität
KW  - Korruptionskontrolle
KW  - Welt-Governance-Indikatoren (WGI)
LA  - eng
PY  - 2021
TI  - The relationship between formal institutions and entrepreneurship: a cross-country analysis
UR  - https://nbn-resolving.org/urn:nbn:de:hbz:467-18643
Y2  - 2024-12-26T20:37:04
ER  -