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The controversial link between entrepreneurial activity and inequality

Author

Listed:
  • Andreea Apetrei

    (Catholic University of Valencia)

  • José Luis Sánchez-García

    (Catholic University of Valencia)

  • Juan Sapena

    (Catholic University of Valencia)

Abstract

This study illustrates how entrepreneurship may contribute to enhancing economic growth and prosperity by reducing inequality and exclusion. Assessing relationships between new ventures and reduction of inequalities enables us to disentangle the mechanisms through which entrepreneurial processes may contribute to societal transformations. The proposed theoretical model is estimated by using fsQCA. The findings suggest that one crucial root of sustainable development through entrepreneurial attitude is strongly linked to the existence of inclusive institutions, and avoidance of extractive ones. The findings contribute to showing the importance of institutions to favour prosperity through entrepreneurship. This research can provide crucial implications and applications for both academics and practitioners such as policymakers. In sum, this paper provides a framework for understanding the connection between entrepreneurship and societal development.

Suggested Citation

  • Andreea Apetrei & José Luis Sánchez-García & Juan Sapena, 2019. "The controversial link between entrepreneurial activity and inequality," International Entrepreneurship and Management Journal, Springer, vol. 15(2), pages 485-502, June.
    • Handle: RePEc:spr:intemj:v:15:y:2019:i:2:d:10.1007_s11365-019-00560-1
    DOI: 10.1007/s11365-019-00560-1
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    1. Maria Tunberg & Alistair R. Anderson, 2020. "Growing a small firm; experiences and managing difficult processes," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1445-1463, December.
    2. María-Teresa Aceytuno & Celia Sánchez-López & Manuela A. de Paz-Báñez, 2020. "Rising Inequality and Entrepreneurship during Economic Downturn: An Analysis of Opportunity and Necessity Entrepreneurship in Spain," Sustainability, MDPI, vol. 12(11), pages 1-16, June.

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