Abstract
Entrepreneurship has been recognized as a key contributor to the economic development of countries and societal wellbeing. Building and sustaining an adequate entrepreneurial climate challenges—to a high extent—transitional economies world-wide, pushing these countries to develop policies and strategies aimed to sustain high-quality national entrepreneurship. The paper seeks to understand the key determinants of a country’s entrepreneurial environment that drive potential entrepreneurs to assume an entrepreneurial status. It attempts to examine the countries’ entrepreneurial environment factors that influence the development of entrepreneurial spirit and affect the potential entrepreneurs’ decision to start a new venture as a desirable career opportunity. Entrepreneurial spirit is measured by entrepreneurial desirability, feasibility and social stability, taken from the Amway Global Entrepreneurship Report (AGER) 2018 data on national entrepreneurship. The results of the linear regression employed in the paper suggest that, in transitional economies like Romania, clear and stable rules and regulations, manageable taxes, an overall beneficial economic situation, as well as availability and accessibility of technology, may lead to greater entrepreneurial drive and ambition, which is fundamental to sustaining economic growth. The article ends with a discussion about the results and implications of the research.
Highlights
Many studies on entrepreneurship acknowledge entrepreneurial activities as key drivers of growth, playing an important role in promoting economic and social development due to their capacity to aggregate job creation and productivity growth associated with the business entries that exceed exits [1,2,3]
The present paper critically analyzed the most prevalent factors of a country’s entrepreneurial environment, indicated by the specialty literature, that impact the entrepreneurial spirit of potential entrepreneurs in Romania
Challenges are typically external in nature and, usually, are not under the influence of new ventures, but they can have a consistent impact on them
Summary
Many studies on entrepreneurship acknowledge entrepreneurial activities as key drivers of growth, playing an important role in promoting economic and social development due to their capacity to aggregate job creation and productivity growth associated with the business entries that exceed exits [1,2,3]. Previous research concluded that conditions of the environment, including social, cultural, political and economic variables, are the main factor that affects one’s aspirations to start a new venture [4], acknowledging the role of contextual barrier conditions in the development of intent to start a business [5,6]. Kallas (2019) [10] acknowledges that there are few approaches that take into account the external environment as a set of variables for making the decision to create an enterprise. She found that the perception of the potential entrepreneur of the political, economic, and socio-cultural environments shapes the future intention to start up a business. A good understanding of the environmental factors influencing the entrepreneurial process can largely contribute to the better equipping of the potential entrepreneurs with capabilities needed to leap from intention to entrepreneurship [11], as well as can help the policies aimed at supporting increased national entrepreneurship
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