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The more the merrier? Economic freedom and entrepreneurial activity

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  • Kuckertz, Andreas
  • Berger, Elisabeth S.C.
  • Mpeqa, Andrew

Abstract

The current research addresses the question of how policy makers might design specific components of economic freedom (EF) to most effectively encourage high levels of entrepreneurial activity (EA). Given that entrepreneurship is a multifaceted phenomenon, the study analyzes the effects of four components of EF on EA and relies on fuzzy-set qualitative comparative analysis (fsQCA) to do so. The research collates data from 63 different countries and analyzes EA as it applies to factor-driven, efficiency-driven, and innovation-driven economies. The current research also differentiates between opportunity-driven entrepreneurship and necessity-driven entrepreneurship. The results suggest that the effects of EF vary according to the developmental stage of an economy and the type of EA in question. The results reveal that simplistic explanations implying that high levels of EF trigger high levels of EA regardless of a country's developmental stage are inadequate.

Suggested Citation

  • Kuckertz, Andreas & Berger, Elisabeth S.C. & Mpeqa, Andrew, 2016. "The more the merrier? Economic freedom and entrepreneurial activity," Journal of Business Research, Elsevier, vol. 69(4), pages 1288-1293.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:4:p:1288-1293
    DOI: 10.1016/j.jbusres.2015.10.094
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    References listed on IDEAS

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    18. Beynon, Malcolm J. & Jones, Paul & Pickernell, David, 2018. "Entrepreneurial climate and self-perceptions about entrepreneurship: a country comparison using fsQCA with dual outcomes," Journal of Business Research, Elsevier, vol. 89(C), pages 418-428.
    19. Yang Zhou & Joshua C. Hall, 2017. "The Impact of Marketization on Entrepreneurship in China: Recent Evidence," Working Papers 17-22, Department of Economics, West Virginia University.
    20. Ibrahim A. Elshaer & Abu Elnasr E. Sobaih, 2022. "I Think I Can, I Think I Can: Effects of Entrepreneurship Orientation on Entrepreneurship Intention of Saudi Agriculture and Food Sciences Graduates," Agriculture, MDPI, vol. 12(9), pages 1-18, September.
    21. Abu Elnasr E. Sobaih & Ibrahim A. Elshaer, 2022. "Structural Equation Modeling-Based Multi-Group Analysis: Examining the Role of Gender in the Link between Entrepreneurship Orientation and Entrepreneurial Intention," Mathematics, MDPI, vol. 10(20), pages 1-23, October.

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