IDEAS home Printed from https://ideas.repec.org/a/sae/jouent/v31y2022i2p402-424.html

Entrepreneurial Activity and Economic Growth of BRICS Countries: Retrospect and Prospects

Author

Listed:
  • Ashok K. Gaba
  • Nitika Gaba

Abstract

Entrepreneurial activity is generally considered to be an important tool for improving economic growth through innovation and employment. The objective of the study was to determine the relationship among economic growth (GDP), entrepreneurial intention (EI), total early-stage entrepreneurial activity (TEA), established business ownership (EBO) rate and high job creation expectation (HJCE) rate. The research design followed a quantitative approach to annual secondary data from 2014 to 2018 for the BRICS countries (Brazil, Russia, India, China and South Africa). The dynamic ordinary least squares model was used to test the relationship among variables. Results indicated that EI is a significant determinant for economic growth. The study added to the prior literature by confirming that EI drives economic growth which can be useful for the policymakers.

Suggested Citation

  • Ashok K. Gaba & Nitika Gaba, 2022. "Entrepreneurial Activity and Economic Growth of BRICS Countries: Retrospect and Prospects," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(2), pages 402-424, July.
    • Handle: RePEc:sae:jouent:v:31:y:2022:i:2:p:402-424
    DOI: 10.1177/09713557221097160
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09713557221097160
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09713557221097160?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zoltan J. Acs & Catherine Armington, 2008. "Employment Growth and Entrepreneurial Activity in Cities," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 25, pages 353-369, Edward Elgar Publishing.
    2. André Stel & Martin Carree & Roy Thurik, 2005. "The Effect of Entrepreneurial Activity on National Economic Growth," Small Business Economics, Springer, vol. 24(3), pages 311-321, February.
    3. Li, Hongbin & Yang, Zheyu & Yao, Xianguo & Zhang, Haifeng & Zhang, Junsen, 2012. "Entrepreneurship, private economy and growth: Evidence from China," China Economic Review, Elsevier, vol. 23(4), pages 948-961.
    4. Chiraz Feki & Sirine Mnif, 2016. "Entrepreneurship, Technological Innovation, and Economic Growth: Empirical Analysis of Panel Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(4), pages 984-999, December.
    5. Michael Fritsch & Pamela Mueller & Antje Weyh, 2005. "Direct and indirect effects of new business formation on regional employment," Applied Economics Letters, Taylor & Francis Journals, vol. 12(9), pages 545-548.
    6. Chen, Chih Cheng, 2014. "Entrepreneurship, Economic Growth, And Employment : A Case Study Of Taiwan," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 55(1), pages 71-88, June.
    7. Leff, Nathaniel H, 1979. "Entrepreneurship and Economic Development: The Problem Revisited," Journal of Economic Literature, American Economic Association, vol. 17(1), pages 46-64, March.
    8. Kim Hoe Looi, 2020. "Contextual Motivations for Undergraduates’ Entrepreneurial Intentions in Emerging Asian Economies," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(1), pages 53-87, March.
    9. Rui Baptista & Vítor Escária & Paulo Madruga, 2008. "Entrepreneurship, regional development and job creation: the case of Portugal," Small Business Economics, Springer, vol. 30(1), pages 49-58, January.
    10. Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May.
    11. Niels Bosma & Jeroen Content & Mark Sanders & Erik Stam, 2018. "Institutions, entrepreneurship, and economic growth in Europe," Small Business Economics, Springer, vol. 51(2), pages 483-499, August.
    12. Michael Adusei, 2016. "Does Entrepreneurship Promote Economic Growth in Africa?," African Development Review, African Development Bank, vol. 28(2), pages 201-214, June.
    13. Pamela Mueller, 2007. "Exploiting Entrepreneurial Opportunities: The Impact of Entrepreneurship on Growth," Small Business Economics, Springer, vol. 28(4), pages 355-362, April.
    14. Danis, Wade M. & De Clercq, Dirk & Petricevic, Olga, 2011. "Are social networks more important for new business activity in emerging than developed economies? An empirical extension," International Business Review, Elsevier, vol. 20(4), pages 394-408, August.
    15. David B. Audretsch & Maksim Belitski, 2021. "Towards an entrepreneurial ecosystem typology for regional economic development: the role of creative class and entrepreneurship," Regional Studies, Taylor & Francis Journals, vol. 55(4), pages 735-756, April.
    16. Jeroen Content & Niels Bosma & Jacob Jordaan & Mark Sanders, 2020. "Entrepreneurial ecosystems, entrepreneurial activity and economic growth: new evidence from European regions," Regional Studies, Taylor & Francis Journals, vol. 54(8), pages 1007-1019, July.
    17. 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.
    18. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 961-975.
    19. Prieger, James E. & Bampoky, Catherine & Blanco, Luisa R. & Liu, Aolong, 2016. "Economic Growth and the Optimal Level of Entrepreneurship," World Development, Elsevier, vol. 82(C), pages 95-109.
    20. Ovidiu Stoica & Angela Roman & Valentina Diana Rusu, 2020. "The Nexus between Entrepreneurship and Economic Growth: A Comparative Analysis on Groups of Countries," Sustainability, MDPI, vol. 12(3), pages 1-19, February.
    21. Justin Doran & Nóirín McCarthy & Marie O’Connor, 2018. "The role of entrepreneurship in stimulating economic growth in developed and developing countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1442093-144, January.
    22. David Urbano & Sebastian Aparicio & David Audretsch, 2019. "Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?," Small Business Economics, Springer, vol. 53(1), pages 21-49, June.
    23. Zoltán J. Ács & Mark W. J. L. Sanders, 2015. "Knowledge spillover entrepreneurship in an endogenous growth model," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 10, pages 174-194, Edward Elgar Publishing.
    24. Christian Bjørnskov & Nicolai J Foss, 2020. "Well-being and entrepreneurship: Using establishment size to identify treatment effects and transmission mechanisms," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-22, January.
    25. Zoltan Acs & Sameeksha Desai & Jolanda Hessels, 2008. "Entrepreneurship, economic development and institutions," Small Business Economics, Springer, vol. 31(3), pages 219-234, October.
    26. Aparicio, Sebastian & Urbano, David & Audretsch, David, 2016. "Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 45-61.
    27. Poh Wong & Yuen Ho & Erkko Autio, 2005. "Entrepreneurship, Innovation and Economic Growth: Evidence from GEM data," Small Business Economics, Springer, vol. 24(3), pages 335-350, January.
    28. Josep Arauzo Carod & Daniel Liviano Solís & Mònica Martín Bofarull, 2008. "New business formation and employment growth: some evidence for the Spanish manufacturing industry," Small Business Economics, Springer, vol. 30(1), pages 73-84, January.
    29. Maria Figueroa-Armijos & Thomas G. Johnson, 2016. "Entrepreneurship policy and economic growth: Solution or delusion? Evidence from a state initiative," Small Business Economics, Springer, vol. 47(4), pages 1033-1047, December.
    30. Bert F. Hoselitz, 1952. "Entrepreneurship and Economic Growth," American Journal of Economics and Sociology, Wiley Blackwell, vol. 12(1), pages 97-111, October.
    31. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    32. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Olumekor, 2024. "Fuzzy Methods in Entrepreneurship Research," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 33(2), pages 365-392, May.
    2. Ayanna Stephens & Abede Jawara Mack & Priscilla Bahaw, 2025. "Unpacking the Complexities of Financial Well-being Among Entrepreneurs and Employees: It’s More Than the Money!," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 34(3), pages 627-667, August.
    3. Austin Mwange & Windu Matoka, 2024. "An Empirical Study of the Role of Entrepreneurship in Zambia’s Economic Growth (1990-2023)," East African Finance Journal, East African Finance Journal, vol. 3(2).
    4. Louis Logogye & Michael Adusei & Kwasi Poku & Godfred Aawaar, 2025. "Financial inclusion—entrepreneurship nexus: evidence from a threshold analysis," Journal of Business Economics, Springer, vol. 95(4), pages 587-616, May.
    5. Sue Abdinnour & Sesan Oluseyi Adeniji, 2023. "Empirical analysis of the impact of entrepreneurial activity on economic growth of Global Entrepreneurship Monitor (GEM) countries," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-11, December.
    6. Idowu Emmanuel Olubodun & James Temitope Dada & Olabisi Damilola Omodara & Mosab I. Tabash, 2025. "Ease of Doing Business and Enterprise Creation in Africa: A Cross-country Panel Analysis," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 34(1), pages 151-180, February.
    7. Cristian A Rojas & Felipe Chávez-Bustamante & Rolando Rubilar-Torrealba, 2024. "Human development and entrepreneurship: A cross-country analysis of early-stage, intention, and discontinuation," PLOS ONE, Public Library of Science, vol. 19(11), pages 1-21, November.
    8. Sajida Parveen & Bilal Ahmad & Wasim ul Rehman & Omur Saltik & Mustafa Bekmezci, 2025. "Women career success as an entrepreneur: the triad of passion, Self-Efficacy, and opportunity recognition," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 15(1), pages 1-13, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas Neumann, 2021. "The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review," Management Review Quarterly, Springer, vol. 71(3), pages 553-584, July.
    2. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    3. Truc Thanh Tran & Nam Khanh Pham & Quan Vu Le, 2025. "Vietnam in Transition: The Nexus of Institutions, Entrepreneurship, and Economic Growth," SAGE Open, , vol. 15(3), pages 21582440251, September.
    4. David Urbano & David Audretsch & Sebastian Aparicio & Maria Noguera, 2020. "Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1065-1099, September.
    5. Ho, Sin Yu & Beri, Parfait Bihkongnyuy, 2024. "The impact of SME sector on economic growth in Africa," MPRA Paper 122552, University Library of Munich, Germany.
    6. Henda Omri & Anis Omri & Abdessalem Abbassi, 2025. "Entrepreneurship and Human Well-Being: A Study of Standard of Living and Quality of Life in Developing Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 177(1), pages 313-344, March.
    7. Ovidiu Stoica & Angela Roman & Valentina Diana Rusu, 2020. "The Nexus between Entrepreneurship and Economic Growth: A Comparative Analysis on Groups of Countries," Sustainability, MDPI, vol. 12(3), pages 1-19, February.
    8. Ondřej Dvouletý & Alisa Gordievskaya & David Anthony Procházka, 2018. "Investigating the relationship between entrepreneurship and regional development: case of developing countries," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-9, December.
    9. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    10. Ignacio Munyo & Leonardo Veiga, 2024. "Entrepreneurship and Economic Growth," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 319-336, March.
    11. David Urbano & Sebastian Aparicio & David Audretsch, 2019. "Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?," Small Business Economics, Springer, vol. 53(1), pages 21-49, June.
    12. Szerb, László, 2025. "Vállalkozáskutatás és a vállalkozói ökoszisztéma biológiai metaforája [Entrepreneurship research and the biological metaphor of the entrepreneurial ecosystem]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1157-1178.
    13. Aparicio, Sebastian & Urbano, David & Audretsch, David, 2016. "Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 45-61.
    14. 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.
    15. Sara Proença & Elias Soukiazis, 2023. "The process of sustainable entrepreneurship: a multi-country analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 10995-11010, October.
    16. Fritsch, Michael, 2008. "Die Arbeitsplatzeffekte von Gründungen : ein Überblick über den Stand der Forschung (The employment effects of new businesses : a survey of the current state of research)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 55-69.
    17. Yagoub Ali Gangi & Alamedin Abdallah Bannaga & Omer Abker, 2023. "Institutional Environment, Entrepreneurial Activities and Economic Growth across Selected Arab Countries," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(4), pages 89-117.
    18. Henda Omri & Anis Omri & Abdessalem Abbassi, 2025. "Governance-driven entrepreneurship activities for multidimensional human well-being: quality of life and standard of living," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 15(4), pages 1167-1218, December.
    19. Bendig, David & Kleine-Stegemann, Lucas & Mazur, Michael & Zapkau, Florian B., 2024. "A multi-level analysis of the relationship between formal institutions and ambitious entrepreneurship: The moderating role of economic development," International Business Review, Elsevier, vol. 33(5).
    20. Teheni El Ghak & Awatef Gdairia & Boutheina Abassi, 2021. "High-tech Entrepreneurship and Total Factor Productivity: the Case of Innovation-Driven Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1152-1186, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    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:sae:jouent:v:31:y:2022:i:2:p:402-424. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ediindia.org/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.