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

Author

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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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    References listed on IDEAS

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    Cited by:

    1. Sebastian Aparicio & David Urbano & Diego Gomez, 2018. "Entrepreneurship and regional economic growth in Antioquia: An empirical analysis," Economics and Business Letters, Oviedo University Press, vol. 7(2), pages 84-92.
    2. Valentina Diana RUSU & Mihaela Brîndușa TUDOSE, 2018. "The Role Of Entrepreneurship In Promoting International Competitiveness Of Cee Countries. A Panel Data Approach," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 5, pages 44-62.
    3. José Ernesto Amorós & Carlos Poblete & Vesna Mandakovic, 2019. "R&D transfer, policy and innovative ambitious entrepreneurship: evidence from Latin American countries," The Journal of Technology Transfer, Springer, vol. 44(5), pages 1396-1415, October.
    4. Fabian Scholtes & Daniel Neff & Florian Lampe, 2018. "The Role And Sources Of Agency And Self-Employment Over The Life Course: Micro-Entrepreneurs In Kampala, Uganda," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-21, December.
    5. Alain Verbeke & Luciano Ciravegna, 2018. "International entrepreneurship research versus international business research: A false dichotomy?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(4), pages 387-394, May.

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    Keywords

    Entrepreneuship; State fragility; Economic development;

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