Abstract
Role of entrepreneurial innovations for human development is still invisible and subject to be investigated. This study uniquely unfolds the stratums of human development indicators caused by the activities of entrepreneurship. For this very purpose, the study utilizes the panel data of human development and entrepreneurship from 129 countries ranging for the years of 2016 to 2018. The human development has been measured through the human development index (HDI), and this data has been accessed from indicators of United nations development program (UNDP). The data of global entrepreneurial innovations (GEI) has been accessed from the global entrepreneurship and development index (GEDI). Both HDI and GEI comprised of composite indexes. GEI is the composite index with three sub-indices and 14 pillars. The three sub-indices are attitudes, abilities and aspiration. Out of 14 pillars opportunity perception, startup skills, risk acceptance, networking and cultural support are associated with attitudes. Opportunity startup, technology absorption, human capital and competition are associated with abilities while production innovation, process innovation, high growth, internationalization and risk capital are associated with aspiration. Although, the data of the HDI index was initially developed since 1990. However, due to non-availability of GEI data, only three years of panel data were included in the study. HDI comprised of three basic dimensions which include the knowledge, standard of living and healthy life. Based on the literature, the study hypothesized that global entrepreneurship positively affects human development worldwide. This proposed relationship was measured through generalized methods of moments through EViews. The data trend had been measured through a scatter diagram, before measuring the specific relationship among the major variables of the study. Through this test, normality of the data ad outliers was also checked. Data dispersion and linearity was checked through the test of standard residuals. After checking the appropriateness of data, parameters of the study were estimated. Results showed a strong and positive correlation between entrepreneurship and human development. By applying generalized methods of moments, the analysis revealed that entrepreneurial innovations could explain the 68 per cent variation in human development. So, it can be safely said that entrepreneurship is an important cause to enhance the capabilities of humans and can ultimately improve HDI worldwide. It is suggested that the nations who want to improve the skills, capabilities and living standards of humans in their respective regions should devise the strategies to promote the entrepreneurial activities. Keywords entrepreneurship, entrepreneurial ventures, human development indicators, global entrepreneurship development index, human development index, human capabilities, human skills, human capital.
Highlights
This world is bestowed and prosper with the vast talent of humans
The prime focus of this study was to measure the association between global entrepreneurship and human development
By applying the Generalized Panel method of moments” (GMM) test, it was observed that Global entrepreneurship had successfully explained the 68 per cent variation in human development
Summary
This world is bestowed and prosper with the vast talent of humans. The creativity and inventiveness of humans provide a common platform for experiments which enables humans to accept the challenges, to resolve the issues facing at current times and to build up the prospects to tackle the forthcoming hitches. Lee, Florida, and Acs (2004) identified the factors which are crucial for the birth of new entrepreneurial innovations These factors included the population density, unemployment rate, structure of the industry, human capital, finance availability and characteristics of the entrepreneurs. By comparing the rural and urban constituencies of entrepreneurial innovations, Faggian, Partridge, and Malecki (2017) recognized that capabilities and knowledge of entrepreneurs were fundamental for creating the environment of entrepreneurship or human development. They further added that the patterns of growth for urban and rural entrepreneurship were almost similar except the high-tech employment which was associated with urban areas. The analysis is supported with the work of (Sammon, 1969) who used the algorithm for the analysis of multidimensional data mapped through scatter diagrams
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