The dynamics of link between entrepreneurship, government support and economic growth: Evidence from BRICS countries

Abstract

The aim of the study is to investigate the dynamics of link between supporting role of BRICS governments in promoting economic growth through entrepreneurship. This paper employs 15 years annual time series data (2004–2018) for five BRICS countries: Brazil, Russia, India, China and South Africa. The study is based on secondary data collected from World Development Indicators (WDI), Global Entrepreneurship Monitor (GEM), Worldwide Governance Indicators (WGI), and Global Entrepreneurship and Development Institute (GEDI). The study revealed that institutional factors (government effectiveness, domestic credit, and perception about opportunities) have an optimistic and considerable impact on entrepreneurial activities in BRICS countries and combination of these three is important to sustainability of the business in today's dynamic environment. Further, ease to access the physical resources, corruption, and public utilities have negative impact on entrepreneurship in these economies. The study also explored that entrepreneurial activities have constructive and noteworthy impact on economic growth in BRICS nations. An entrepreneurial ecosystem is required within each country to sustain novel, dynamic, and swiftly mounting new ventures. The study is unique as it elucidated the significant role of government effectiveness, role of domestic credit, perception about opportunities, ease to access the physical resources, and corruption in promoting the entrepreneurial culture in BRICS economies. Additionally, the study also clarified the imperative function of entrepreneurial activities in overall growth of BRICS economies.