Abstract
Our paper examines the potential effect of different types of entrepreneurship (in particular, early-stage entrepreneurship, opportunity-driven entrepreneurship, and necessity-driven entrepreneurship) on economic growth at a national level and aims to identify whether the contribution of entrepreneurship to economic growth differs according to the stage of economic development of a country. Our empirical analysis is based on the panel data, which covers 17 years (2002–2018) and 22 European countries, classified into two groups. The results suggest that all three types of entrepreneurship have a greater impact on economic growth for the entire sample of European countries, and some types of entrepreneurship are more important than others. We find that opportunity-driven entrepreneurship and early-stage entrepreneurship would be key factors in stimulating economic growth across the sample of European countries. Our estimations also show that opportunity-driven entrepreneurship would have a greater impact in transition countries, while necessity-driven entrepreneurship would have a stronger influence in the innovation-driven countries. The results of our research could be of interest to policymakers, as it can help in identifying and implementing the most appropriate measures to eliminate the obstacles in the macroeconomic environment that entrepreneurs face, and measures to support innovative entrepreneurial activities.
Highlights
One of the fundamental problems of any national and regional economy is to determine the drivers of economic growth and development
Considering a set of data for 22 European countries, the findings of our study sustain the positive impact of entrepreneurship on economic growth
Our findings are in line with the conclusions of previous research which point out the different role of entrepreneurship on economic growth, taking into account the type of entrepreneurship considered, and the level of economic development
Summary
One of the fundamental problems of any national and regional economy is to determine the drivers of economic growth and development. Compared to traditional factors of production (capital and labor), knowledge would have a substantial impact on economic growth due to its propagation to be used by third parties’ enterprises [4,5]. The researchers included in the neo-classical model other factors that drive economic growth, including entrepreneurship. The significant effects of the recent international crisis on national economies have brought to the attention of researchers and policymakers the problem of the factors that determine the economic growth. Given the severe economic downturn in some countries, including European countries, and the high unemployment rate, especially among young people, their orientation towards entrepreneurship, which is considered an engine for economic growth, is crucial
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