IDEAS home Printed from
   My bibliography  Save this article

Determinants Of Entrepreneurial Activity In Times Of Crisis: An Empirical Study


  • Hatmanu (Gagea) Mariana

    () (Alexandru Ioan Cuza University of Iasi, Romania, Faculty of Economics and Business Administration,)

  • Iacobuțã Andreea-Oana

    () (Alexandru Ioan Cuza University of Iasi, Romania, Faculty of Economics and Business Administration,)


In the context of the present economic crisis, entrepreneurship has re-emerged as a topic of interest both for policy makers worldwide as well as for academic research. A wide range of psychological, economic and sociological factors influencing entrepreneurial activity is presented by the existing literature. The aim of this paper is to identify the economic and institutional factors that influenced entrepreneurial activity both before and during the crisis. Data for 27 countries worldwide from Global Entrepreneurship Monitor, World Bank World Development Indicators and World Bank's Worldwide Governance Indicators international databases were collected for the years 2007, 2009 and 2012. A three stage empirical research was conducted: a comparative analysis of the distribution of the selected variables for the three years, principal components analysis in order to provide an image of the intensity and direction of the relationship between the variables and to characterize the statistical units and econometric modelling to describe the variation of entrepreneurial activity in relation with its economic and institutional determinants. Contrary to expectations, the research findings show that before the crisis, the variation of entrepreneurial activity is explained by the negative influence of the perceived confidence in the rules of society and during the crisis it is negatively influenced by the perceived government effectiveness. The limitations of the research are also presented.

Suggested Citation

  • Hatmanu (Gagea) Mariana & Iacobuțã Andreea-Oana, 2014. "Determinants Of Entrepreneurial Activity In Times Of Crisis: An Empirical Study," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 320-330, July.
  • Handle: RePEc:ora:journl:v:1:y:2014:i:1:p:320-330

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Martínez-Granado, Maite, 1998. "Self-employment and labour market transitions: a multiple state model," UC3M Working papers. Economics 4159, Universidad Carlos III de Madrid. Departamento de Economía.
    2. Sander Wennekers & André Stel & Roy Thurik & Paul Reynolds, 2008. "Nascent entrepreneurship and the level of economic development," Small Business Economics, Springer, vol. 30(3), pages 325-325, March.
    3. Giannetti, Mariassunta, 2003. "Do Better Institutions Mitigate Agency Problems? Evidence from Corporate Finance Choices," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 38(1), pages 185-212, March.
    4. Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, vol. 45(4-6), pages 680-691, May.
    5. Vidal-Suñé, Antoni & López-Panisello, María-Belén, 2013. "Institutional and economic determinants of the perception of opportunities and entrepreneurial intention," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 26, pages 75-96.
    Full references (including those not matched with items on IDEAS)

    More about this item


    entrepreneurial activity; total early-stage activity (TEA); crisis; Principal Component Analysis method (PCA); econometric model;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2014:i:1:p:320-330. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE) The email address of this maintainer does not seem to be valid anymore. Please ask Catalin ZMOLE to update the entry or send us the correct email address. General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.