Leveraging sport mega events for international entrepreneurship

Abstract

Can sport mega events (SMEs) incite entrepreneurial rent-making in nations that host them? The manuscript investigates this question using frameworks in sport event leverage and sport-based entrepreneurship as a foundation. Results from a sample of N = 2259 observations from 1970 to 2017 tied to 156 nations and 59 SMEs produced two takeaways. First, hosting a sport mega event (SME) was associated with increases in entrepreneurial rents for firms in developed host nations. Second, that relationship did not exist for the subsample classified as ‘developing’ nations. The first result implies that developed nations can use SMEs to stimulate entrepreneurialism– a finding that solidifies sport-based entrepreneurship within the sport management landscape and bolsters frameworks of SME leverage. The second finding reinforces that there is no documentable upside to hosting a SME for developing nations – at least under the current approach. Managerial implications are outlined for developing and developed host nations.