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Using QCA to explain firm demography in the European Union

Author

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  • Ferreira, Paulo
  • Dionísio, Andreia

Abstract

Entrepreneurship is currently considered one of the major foundations of economic growth. There is a strong tendency to understand entrepreneurship as technology, self-employment, new ideas, innovation, or wealth creation. We can thus expect more developed countries to show higher growth rates, given the importance of firms' development for economic and social growth. For this reason, it is important to determine the conditions that have the greatest influence on entrepreneurship dynamics at the macroeconomic level. Using firm birth and death rates (related to business dynamics and entrepreneurship), we focus on the European Union and use qualitative comparative analysis techniques to determine the necessary and sufficient conditions for business dynamics. After dividing the whole EU sample into cohesion and non-cohesion countries, we find that entrepreneurship in cohesion countries is driven by necessity, while in non-cohesion countries, it is driven by opportunity.

Suggested Citation

  • Ferreira, Paulo & Dionísio, Andreia, 2019. "Using QCA to explain firm demography in the European Union," Journal of Business Research, Elsevier, vol. 101(C), pages 743-749.
    • Handle: RePEc:eee:jbrese:v:101:y:2019:i:c:p:743-749
    DOI: 10.1016/j.jbusres.2018.12.074
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    Cited by:

    1. Komlósi, Éva & Sebestyén, Tamás & Tóth-Pajor, Ákos & Bedő, Zsolt, 2022. "Do specific entrepreneurial ecosystems favor high-level networking while others not? Lessons from the Hungarian IT sector," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    2. ben Jabeur, Sami & Mefteh-Wali, Salma & Carmona, Pedro, 2021. "The impact of institutional and macroeconomic conditions on aggregate business bankruptcy," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 108-119.

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