DETERMINANTS OF ENTREPRENEURIAL ACTIVITY IN ASIA AND OCEANIA

Abstract

Economic uncertainty created by an unstable environment and various financial crises has forced decision-makers to look into factors affecting entrepreneurial activities in the world. As entrepreneurship is perceived as a core component for economic development and it has a vital role in national economies due to its ability to create new jobs and transformation. This study explores the determinants of entrepreneurial activity in the Asia and Oceania region from 2001 to 2018. The results of this study indicate that entrepreneurial intention, perceived capabilities, the growth rate of GDP, and the tax rate positively, while unemployment negatively affects the entrepreneurial activity in the region. The study did not draw any unusual conclusions with regards to factors affecting entrepreneurship activities in Asia and Oceania region after the Global Financial Crisis (2008). The study finds differentiation in factors affecting entrepreneurship during high and low GDP growth periods. The results of this study fail to find the moderated role of religion on entrepreneurial activity in the Asia and Oceania region. Keywords: Entrepreneurship; Entrepreneurial activity; Economic development; Asia and Oceania Region