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"Romanticizing Penniless Entrepreneurs?" The Relationship between Start-Ups and Human Wellbeing across Countries

Author

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  • Naudé, Wim

    (RWTH Aachen University)

  • Amorós, José Ernesto

    (Universidad del Desarrollo)

  • Cristi, Oscar

    (Universidad del Desarrollo)

Abstract

We study the effect of entrepreneurship and its allocation between necessity and opportunity entrepreneurship on three indicators of countries' wellbeing: monetary wellbeing, non-monetary wellbeing and our own indicator of a country's ability to translate economic growth into non-monetary wellbeing. We take into consideration that there is a feedback effect from monetary and non-monetary wellbeing to entrepreneurial allocation. Using data from the Global Entrepreneurship Monitor we establish that opportunity entrepreneurship may contribute towards national wellbeing and that better wellbeing in turn may stimulate opportunity entrepreneurship. Hence, entrepreneurship may contribute towards countries' wellbeing in a broad sense, and countries with higher levels of wellbeing may contribute towards opportunity entrepreneurship.

Suggested Citation

  • Naudé, Wim & Amorós, José Ernesto & Cristi, Oscar, 2013. ""Romanticizing Penniless Entrepreneurs?" The Relationship between Start-Ups and Human Wellbeing across Countries," IZA Discussion Papers 7547, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7547
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    Cited by:

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    2. David Urbano & Sebastian Aparicio & Victor Querol, 2016. "Social progress orientation and innovative entrepreneurship: an international analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1033-1066, December.
    3. Mojca Svetek & Mateja Drnovsek, 2022. "Exploring the Effects of Types of Early-Stage Entrepreneurial Activity on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 23(1), pages 149-170, January.
    4. Ratan J. S. Dheer & Len J. Treviño, 2022. "Explaining the rate of opportunity compared to necessity entrepreneurship in a cross-cultural context: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 29-55, March.

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    More about this item

    Keywords

    entrepreneurship; wellbeing; development; Global Entrepreneurship Monitor;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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