Entrepreneurial Framework Conditions Research Articles

Entrepreneurial Climate in India, China and the USA

Entrepreneurship plays a vital role in the process of wealth creation and improving the standard of living of the people through large-scale employment generation. So this study aims to identify the critical factors among the entrepreneurial framework conditions (EFC) and entrepreneurial behaviour and attitudes (EBAA) in enhancing the entrepreneurship climate in the United States of America (USA), China and India. The data for the study is collected from GEM (Global Entrepreneurship Monitor) on EBAA and EFC. Exploratory factor analysis was attempted initially to reduce the EBAA and EFC data into manageable factors. Further, confirmatory factor analysis was attempted to cross-validate the results. Key Points: • The results unveil that the Public conditions and Business Promotions (EFC) in the USA are superior to India and China. At the same time, India lags behind both the USA and China. • Indian entrepreneurs are more optimistic and audacious than their Chinese counterparts. • The future of entrepreneurship in India depends on what measures the Government adopts today to strengthen the entrepreneurship framework conditions.

The influence of entrepreneurship on economic growth in BRICS economies

This study employs correlation analysis and a fixed effects model premised on indexes extracted through principal component analysis to assess the effects of entrepreneurial attitudes and behaviour, and entrepreneurial framework conditions (EFCs) on economic growth in BRICS economies. For purposes of effectiveness, a panel dataset for entrepreneurial attitudes and behaviour, and EFCs indicators is pooled from the Global Entrepreneurship Monitor website, and one for gross domestic product (GDP) per capita, a proxy for economic growth, is sourced from the World Bank website over the period 2001-2021. The study reveals that there are statistically significant negative correlations between GDP per capita and ‘entrepreneurial intentions rate’, ‘perceived capabilities rate’, ‘perceived opportunities rate’, ‘governmental support and policies’, ‘taxes and bureaucracy’, ‘governmental programmes’, ‘internal market openness’, ‘physical and services infrastructure’ and ‘cultural and social norms’. Furthermore, entrepreneurial attitudes and behaviour positively impact GDP per capita, whereas EFCs have no significant influence on GDP per capita in BRICS economies.

Entrepreneurial conditions and economic growth in entrepreneurial ecosystems: Evidence from OECD countries

This study analyses the potential influences of entrepreneurial framework conditions on the economic growth of OECD countries. We correspondingly divided these countries into groups according to their income level (high- and upper-middle-income economies) with the data, structured into an unbalanced dynamic longitudinal panel (2000–2020), obtained from the National Expert Survey, Global Monitor Entrepreneurship and the World Bank. After applying the generalised method of moments, we may report that commercial, professional, physical and service infrastructures, government support and policies, R&D transfers, cultural and social norms and financing entrepreneurs positively affect economic growth independently of the national income level. Basic entrepreneurial education does not attain significance in explaining the economic growth of high-income economies and post-education is not significant in explaining the economic growth of upper-middle-income economies. Furthermore, government programmes generate negative effects on the economic growth of OECD countries when considered jointly and individually in high-income economies but with a positive effect on upper-middle-income economies that display an inverse behaviour in the case of the effects of taxes and bureaucracy. The upper-middle-income economies also registered a negative effect in terms of internal market dynamics and openness even while this factor returned positive effects in high-income economies.

A Critical Assessment of the National Expert Survey Data of the Global Entrepreneurship Monitor

Data collected through the National Expert Survey (NES) of the Global Entrepreneurship Monitor (GEM) are widely used to benchmark and assess the quality and impact of national entrepreneurial ecosystems. Based on a comprehensive analysis of the publicly available NES data, we show that the construct validity of the survey is not sufficient and that the experts differ so greatly in their evaluations of the entrepreneurial framework conditions (EFCs) in a country that meaningful cross-country and within-country (longitudinal) analyses are precluded. We conclude that the currently available NES data are not suited for motivating policy decisions.

The Impacts of the Entrepreneurial Conditions on Economic Growth: Evidence from OECD Countries

This study aims to assess the impacts of entrepreneurial framework conditions on economic growth based on the level of economic development in transition-driven economies and innovation-driven economies. The data were organised into a panel (2000–2019) and obtained from the National Expert Survey (NES), the Global Monitor Entrepreneurship (GEM), and the World Bank. By applying the generalised method of moments (GMM) estimation, we found that R&D transfer has a negative impact on economic growth that is innovation-driven, but positively impacts transition-driven economies. The results further highlighted that regardless of the level of development of the country, business and professional infrastructure do not positively impact economic growth. However, taxes and bureaucracy and physical and service infrastructure were shown to positively impact only innovation-driven economies, as in transition-driven economies, they were shown to have negative impacts on economic growth. The present study contributes to a better understanding of the link between economic growth and the conditions for entrepreneurship in economies with different degrees of economic growth. This study can serve as a basis for policy makers to adjust or develop new policies to accelerate economic growth.

Is the success of entrepreneurs dependent on the environment in a conflict zone: insights from Indian-administered Kashmir

PurposeThe purpose of this research is to empirically examine the impact of selecting entrepreneurial framework conditions on the success of entrepreneurs in a conflict zone. The study was conducted in Kashmir, which is a fitting conflict context. The study undertaken responds to the call by multiple authors to substantiate the entrepreneurship literature with empirical evidence from conflict-affected areas. The authors argue that better entrepreneurial framework conditions will enhance entrepreneurial success in conflict zones. This research work is important because it will add to our understanding of the influences of the entrepreneurial ecosystem on entrepreneurs who pursue an entrepreneurial career in conflict zones. This research will add to the existing body of knowledge, which seemingly lacks evidence from conflict zones. Furthermore, this research is important in the Kashmir context because this research will provide insights to stakeholders such as entrepreneurs, government agencies, entrepreneurship development agencies and NGOs, etc.Design/methodology/approachThe authors surveyed 400 entrepreneurs in the manufacturing, services and retail sectors in Kashmir through a questionnaire. The self-reported responses were used for assessment of entrepreneurial framework conditions and financial and non-financial performance. The data were analysed through the partial least squares structural equation modeling (PLS-SEM) to test the hypothesised relationships. The results were considerable.FindingsThe authors found that most Kashmiri entrepreneurs do not find the entrepreneurial framework conditions supportive of their business. Upon testing the hypothesis, they found a significant and positive impact of entrepreneurial finance, government policies and cultural and social norms on entrepreneurial success. The common belief that ease in market dynamics would positively impact success was negated in this case. They found a significant and negative impact of market dynamics on success. Furthermore, the physical, commercial and professional infrastructure and services showed insignificant results.Research limitations/implicationsThis research provides insights about the requirements of entrepreneurial framework conditions in a conflict zone for achieving successful results. The current study acknowledges the call of researchers to carry out quantitative studies in conflict zones.Practical implicationsThe findings of this research might prove to be beneficial to the entrepreneurs, policymakers, government agencies and other stakeholders. If taken into consideration while formulating the policies in favour of entrepreneurs in a conflict zone, the findings of this research are an added resource. The current research might be valuable to the Government of Kashmir in recognising the perception of entrepreneurs towards the initiatives or the policies drafted in the past.Originality/valueAs per the knowledge of researchers, no such study has been conducted in Kashmir vis-a-vis the variables studied. The study is original in terms of analysing the impact of the environment on the success of entrepreneurs in a conflict zone in Kashmir.

Unveiling the Dynamics of the European Entrepreneurial Framework Conditions over the Last Two Decades: A Cluster Analysis

Entrepreneurship is a theme of global interest, and it is the subject of investigations conducted by many researchers and projects. In particular, the Global Entrepreneurship Monitor project is a global project that involves several countries and years of surveys on entrepreneurship indicators. This study focuses on the 12 indicators of the entrepreneurial ecosystem defined by the Entrepreneurial Framework Conditions (EFCs). The EFCs are specifically related to the quality of the entrepreneurial ecosystem. Using clustering techniques, the present study analyzes how European experts’ perceptions on the EFCs of their home country have changed between 2000 and 2019. The main finding is the existence of significant differences between the clusters obtained over the years and between countries. Therefore, in theoretical terms, this dynamical behavior in relation to the entrepreneurial conditions of economies should be considered in future works, namely, those concerning the definition of the number of clusters, which, according to the internal validation measures computed in this work, should be two.

Entrepreneurial Framework Conditions and Impact Scores of Small-Size Certified Benefit Corporations (CBCs). A Configurational Analysis of 17 Countries

The urgent need that the private sector generate positive social and environmental impacts in order to cope with the grand challenges faced by humanity and contribute to sustainable development, has ignited the need to understand the country conditions that could promote such an endeavor, especially for small firms who may have more difficulties and, among them, those that try to generate positive impacts for multiple stakeholders, such as Certified B Corporations (CBCs). To contribute to such understanding, we use fsQCA to identify the combinations of presence/absence of four entrepreneurial framework conditions (EFCs)—financing for entrepreneurs, taxes and bureaucracy, R&D transfer, and commercial and legal infrastructure—that are sufficient for the presence/absence of a high average impact score of small-size CBCs in the country. The analysis reveals that two combinations of the presence/absence of the considered EFCs are sufficient for the presence and another two are sufficient for the absence of that outcome. General patterns, specific combinations and the implications for policymakers, CBCs managers and future research are discussed.

Entrepreneurial dynamics and government policies to boost entrepreneurship performance

This paper aims to illustrate the entrepreneurial performance of economies taking into account the variables present in the entrepreneurial framework conditions. The methodology used in the research is exploratory, descriptive and quantitative. We used a process that combines Factorial Analysis with Cluster Analysis. Considering the entrepreneurial framework variables conditions, our results indicate that there are four groups in economies: 1) Moderate Entrepreneurial Performance; 2) Emerging Entrepreneurial Performance; 3) High-Income Economies; and 4) Advanced Entrepreneurial Economies. Our research also denotes where economies need to develop new policies to improve their entrepreneurial performance and competitiveness. This research brings new contributions to science and existing literature as it helps to understand and clarify the entrepreneurial performance of economies relative to entrepreneurial framework conditions.

Regional entrepreneurial ecosystems in Chile: comparative lessons

PurposeThis paper aims to deal with different experts’ perceptions of entrepreneurial ecosystems (EEs) from central to non-central regions to evaluate if there was any evolution (or involution), comparing the results with those of a previous similar study on Chile from 2013, and it follows to replicate and improve our knowledge of the entrepreneurial opportunities.Design/methodology/approachOne of the Global Entrepreneurship Monitor surveys, the National Experts’ Survey, was applied to a sample ofN= 1,555 key informants in Chile at 11 regions. The author used non-parametric statistics to compare the differences between centrally and non-centrally located experts.FindingsThe results indicate an evolution of the Chilean entrepreneurial ecosystem in an effort to homologate the entrepreneurial opportunities at non-central regions since the last study published in 2013. The financial support and physical infrastructure conditions were perceived to be more favorable in central regions, whereas the general government policies and entrepreneurial education at primary and secondary levels were perceived to be more favorable in non-central regions.Originality/valueThis research aims to contribute to filling the gap from the regional EEs’ perspective in emerging economies by comparing the results of the study on Chile with data from the previous government (2007–2009) providing an updated study of it (2015–2018) using the entrepreneurial framework conditions. It is relevant because the government established the “StartUp Chile” program that positioned the country as an innovation hub in Latin America since 2010.

Entrepreneurial framework conditions and business sustainability among the youth and women entrepreneurs

Purpose This study aims to investigate the relationship between entrepreneurial framework conditions (EFCs) and business sustainability among youth and women entrepreneurs using the institutional theory. Design/methodology/approach This study is cross-sectional and follows an explanatory research design using 390 youth and women entrepreneurs in Mbarara district (Uganda). A principal factor analysis was conducted to single out the particular constructs of business sustainability and EFC. Inferential analysis was conducted to test the relationships. Findings First, the constructs of business sustainability are stakeholder engagements, people and skills, ecosystem management, market and sales and innovation. Second, the constructs of EFC are education, government program and policies, IT infrastructure, market openness and finance. Finally, finance and IT infrastructure are significant predictors of business sustainability among the youth and women entrepreneurs. Research limitations/implications The examination of EFCs from the perspective of the consumers/beneficiaries can offer reasonable results when compared to the national expert perspective. Originality/value This study generates initial evidence on the applicability of EFCs from the perspective of the individuals as opposed to the national experts.

Impact of country-level corporate governance on entrepreneurial conditions

The present study examines the effect of country-level corporate governance (CLCG) and Directors’ Liability (DL) on Entrepreneurial Framework Conditions (EFCs) across 52 countries from 2014 up to 2017 using balanced panel data and Panel Correction Standard Error estimation. The results revealed that the CLCG has a significant impact across EFCs dimensions. Further, the results declared that the impact of DL is significant and positive in countries that have a high score of DL, but this impact is statistically negative in countries that have a low score of DL. The findings have momentous implications for entrepreneurs, policymakers, regulators, international organizations, and academicians. The study makes novel contributions to the strand literature underpinning country-level governance and the role of directors’ liability with EFCs. It brings a useful insight into a previously undocumented area of research highlighting the importance of CLCG dimensions and DL as important factors and determinants for better entrepreneurial conditions.

Examining the Industrial Energy Consumption Determinants: A Panel Bayesian Model Averaging Approach

The paper explores the impact of early stage and established entrepreneurs on industrial energy consumption across European countries for the period 2001–2017. It proposes that industrial energy consumption is a complex multifaceted result of value-added activities conducted by different types of entrepreneurs and the quality of macroeconomic and entrepreneurial framework conditions, which support or hinder entrepreneurial activity and consequently energy use. After selecting the most appropriate model using a panel Bayesian averaging model approach, a fixed effects panel regression analysis was conducted to investigate more deeply the impact of different types of entrepreneurs on industrial energy consumption. The results show that early stage and established entrepreneurs exhibit different behavioral patterns with respect to energy use. The former follows, although statistically insignificantly, a U-shaped energy use curve. By contrast, the latter follows statistically significantly an inverted U-shaped curve. Additionally, the results confirm the important role of the governments and other policy authorities in creating favorable framework conditions, which can support the changes in behavioral energy practices and the development of new or established businesses aiming for sustainability.

Entrepreneurial Ecosystem, Entrepreneurial Activity and Economic Performance

In this research, we have empirically tested the impact of Entrepreneurial Framework Conditions (EFC) on entrepreneurial activity and ultimately on economic growth of a nation. In our sample all the 54 countries participating in the GEM study in 2017 are taken. 67.8% of the world’s population and 86.0% of the world’s GDP is represented by the economies included in GEM 2017. The entrepreneurial ecosystem is captured through 12 EFCs used in the GEM model that includes: Financial environment, government policy of support and relevance, government policy of taxes and bureaucracy, government programs, entrepreneurial education at school stage and post school stage, R&D transfer, commercial and legal infrastructure, internal market dynamics, access to physical infrastructure, and social and cultural norms. The impact of these EFCs and their significance in creating entrepreneurial activity (TEA) in a nation is analyzed using OLS estimation technique with TEA as dependent variable. Secondly, the impact of entrepreneurial activity (TEA) on economic growth ( ∆GDP) is estimated using OLS regression model with control variables such as global competitiveness index (GCI) and Gross national income per capita, expressed in purchasing power parity (GNIC). The results suggest that entrepreneurship education at post school stage, entry burdens and cultural and social norms are significant framework conditions that support entrepreneurial activity, while R&D transfer, internal market dynamics and commercial and legal infrastructure hinders the process of entrepreneurship. Furthermore, TEA is significantly contributing to the economic growth of factor driven and efficiency driven economies.

Factores que incidieron en el emprendimiento rural en Extremadura (España) durante el período 2003 - 2012

El emprendimiento puede ayudar a solucionar algunos problemas de la sociedad actual; en las áreas rurales podría influenciar positivamente la economía, generar empleo, frenar la despoblación y dinamizar estos espacios. Sin embargo, el entorno donde se lleve a cabo puede condicionarlo. El objetivo de este trabajo fue identificar y analizar las condiciones del entorno emprendedor (EFCS) que impulsaron o dificultaron el emprendimiento rural en Extremadura durante el período 2003 - 2012. La investigación realizada fue descriptiva; la información utilizada provino de la encuesta a expertos en el entorno para emprender del proyecto Global Entrepreneurship Monitor (GEM) Extremadura. Los resultados permiten observar que el acceso a la infraestructura física, el apoyo a la mujer y la innovación, fueron las condiciones que impulsaron el emprendimiento; por su parte, la educación, las habilidades y el apoyo financiero, al parecer obstaculizaron la aparición de nuevas empresas en Extremadura.

Entrepreneurship, Institutions, and Economic Growth

This study questions the assumption that entrepreneurship unequivocally leads to economic growth. Using insights from institutional theory and development economics, we reevaluate entrepreneurship’s contribution towards economic growth. Our study uses Global Entrepreneurship Monitor (GEM) data for a panel of 83 countries from 2002 to 2014 and highlights several important findings. First, our evidence suggests that entrepreneurship encourages economic growth but not in developing countries. Second, we find that a country’s institutional environment - measured by GEM’s Entrepreneurial Framework Conditions (EFCs) - contributes to economic growth in more developed countries but not in developing countries. Lastly, we find that opportunity-motivated entrepreneurship encourages economic growth in developed countries, while necessity-motivated entrepreneurship discourages economic growth in developing countries. These findings have important policy implications. Namely, our evidence contradicts policy proposals that suggest entrepreneurship and the adoption of pro-market institutions that support it will encourage economic growth in developing countries. Our evidence suggests these policy proposals are unlikely to generate the desired economic growth.

R&D transfer, policy and innovative ambitious entrepreneurship: evidence from Latin American countries

In this article, we explore the effectiveness of government intervention, R&D, and pro-innovation mechanisms in the likelihood of being an innovative entrepreneur with high ambitions of growing, in the particular context of Latin America and the Caribbean. We use a longitudinal approach, with a multilevel mixed-effects logistic regression procedure. The data comes mainly from the Global Entrepreneurship Monitor and the Global Competitiveness Index. The sample covers 14 countries from Latin America and the Caribbean between 2006 and 2015. The results provide empirical insights about firm and individual characteristics that explain the likelihood of being an innovative and ambitious entrepreneur. We also find that effective and narrowed policies in addition to an innovation-driven environment, also increases innovative-ambitious entrepreneurs. The paper includes implications for policy makers that want to enhance local entrepreneurial framework conditions.

Effect of entrepreneurial framework conditions on R&D transfer to new and growing firms: The case of European Union innovation-driven countries

Public investment in Research and Development (R&D) can give a strong contribution to economic development, provided that knowledge is successfully transferred to industry. Although larger and established firms have been taking on priority in this process, new and growing firms may also be important vehicles of knowledge exploitation. However, this route has received limited attention, particularly regarding the contextual conditions that may favour R&D transfer to those firms. To shed light on this topic, this article analyzes an empirical model that considers simultaneously a number of framework conditions. Using data from the National Expert Survey – Global Entrepreneurship Monitor (GEM), the study compares the proposed relationships between Portugal and fifteen other innovation-driven economies from the European Union (EU).The results validate most relationships of the proposed model, offering evidence that fostering entrepreneurship, particularly through government support programs, education and training and favourable entry regulations allow countries to derive benefits from the investment made in R&D, which may be effectively exploited by new and growing firms. The effect of entrepreneurial finance was not confirmed in the Portuguese case, suggesting that there may be country specificities affecting the relationship between entrepreneurial finance and R&D transfer.

New and growing firms' entrepreneurs' perceptions and their discriminant power in EDL countries

This work aims to analyse entrepreneur's perceptions about conditions to create new and growing firms and their significance in the economic development level (EDL) of countries. For this paper was used Global Entrepreneurship Monitor (GEM) project, in particular, the dataset NES 2013. To group the variables related to entrepreneur's perceptions about conditions to create new and growing firms a factor analysis was done and the variables more relevant are identified. Eight factors were obtained and renamed considering the entrepreneurial framework conditions (EFCs) defined by GEM. Next, in order to find out which variables contributed to economic development level of the countries, considering the entrepreneurs' perceptions, a discriminant analysis was carried out. With this study, we conclude that the levels of economic development are distinguished by the perceptions of entrepreneurs about new and growing firms.

The impact of entrepreneurship framework conditions in total early-stage entrepreneurship activity: an international approach

The original global entrepreneurship monitor model predicts that the business activity at the national level varies with the general national framework conditions, while entrepreneurial activity varies with the entrepreneurial framework conditions (Reynolds et al., 2005). The aim of the national expert survey is to provide a general diagnostic approach to the entrepreneurship institutions that can be applied to any territorial level: as nation, region, city or others. It selects a representative sample of experts and asks them to make valuations on the target territory, using questionnaires. The global entrepreneurship monitor also provides the total early-stage entrepreneurship activity for the studied countries which is the percent of working age population both about to start an entrepreneurial activity, and that have started one from a maximum of three years and half. Therefore, this paper examines data collected from the Global Entrepreneurship Monitor 2011 National Expert Survey Global Individual Level Data in order to assess the impact of the environmental variables on entrepreneurship. Results show that the variables entrepreneurial level of education at vocational, professional, college and university, research and development level of transference, physical infrastructures and services access and cultural, social norms and society support, have more impact in the total early-stage entrepreneurship activity.