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Necessity or opportunity? the effects of State fragility and economic development on entrepreneurial efforts

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  • José Ernesto Amorós Espinosa
  • Luciano Ciravegna
  • Vesna Mandakovic
  • Pekka Stenmolm

    (School of Business and Economics, Universidad del Desarrollo)

Abstract

This paper studies the effects of state fragility and economic development on necessity and opportunity-based individual entrepreneurial efforts. We contribute to the literature on the contextual determinants of entrepreneurship by examining multilevel data on 956,925 individuals from 51 countries for the period of 2005–2013. We show that state fragility has a positive effect on necessity-based entrepreneurial efforts while hindering opportunity-based efforts. Our findings illustrate that the level of economic development moderates the relationship between state fragility and necessity-driven entrepreneurial efforts reducing the likelihood of the latter. We discuss the implications for theory and for pro-entrepreneurship policy

Suggested Citation

  • José Ernesto Amorós Espinosa & Luciano Ciravegna & Vesna Mandakovic & Pekka Stenmolm, 2017. "Necessity or opportunity? the effects of State fragility and economic development on entrepreneurial efforts," Serie Working Papers 42, Universidad del Desarrollo, School of Business and Economics.
    • Handle: RePEc:dsr:wpaper:42
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