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Institutional Determinants of Macro–Level Entrepreneurship

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  • Michael E. Valdez
  • James Richardson

Abstract

This multicountry study empirically explores the institutional determinants of macro–level entrepreneurship. Findings suggest that a society's normative, cultural–cognitive, and regulative institutions are related to entrepreneurial activity. Normative and cultural–cognitive institutions’ descriptive power in explaining entrepreneurial activity is higher than regulative institutions’ or per capita gross domestic product. This suggests that differences in values, beliefs, and abilities may play a greater role than purely economic considerations of opportunity and transaction costs. Specific attention is given to opportunity– and necessity–motivated entrepreneurship due to their relationship to economic development.

Suggested Citation

  • Michael E. Valdez & James Richardson, 2013. "Institutional Determinants of Macro–Level Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 37(5), pages 1149-1175, September.
    • Handle: RePEc:sae:entthe:v:37:y:2013:i:5:p:1149-1175
    DOI: 10.1111/etap.12000
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    6. José Ernesto Amorós & Luciano Ciravegna & Vesna Mandakovic & Pekka Stenholm, 2019. "Necessity or Opportunity? The Effects of State Fragility and Economic Development on Entrepreneurial Efforts," Entrepreneurship Theory and Practice, , vol. 43(4), pages 725-750, July.
    7. Afi, Hatem & Boubaker, Sabri & Omri, Anis, 2022. "Do foreign investment and economic freedom matter for behavioral entrepreneurship? Comparing opportunity versus necessity entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    8. Fadil Sahiti, 2021. "Institutions and entrepreneurial activity: a comparative analysis of Kosovo and other economies," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 10(1), pages 98-119, February.
    9. Habib Allah Ranaei Kordshouli & Bahareh Maleki, 2023. "Entrepreneurship motivation and institutions: system dynamics and scenario planning," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-25, December.
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    13. Fredström, Ashkan & Peltonen, Juhana & Wincent, Joakim, 2021. "A country-level institutional perspective on entrepreneurship productivity: The effects of informal economy and regulation," Journal of Business Venturing, Elsevier, vol. 36(5).
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    15. Andrew Burke & Serhiy Lyalkov & Ana Millán & José María Millán & André Stel, 2021. "How do country R&D change the allocation of self-employment across different types?," Small Business Economics, Springer, vol. 56(2), pages 695-721, February.
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    17. Garry D. Bruton & Shaker A. Zahra & Li Cai, 2018. "Examining Entrepreneurship Through Indigenous Lenses," Entrepreneurship Theory and Practice, , vol. 42(3), pages 351-361, May.

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