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"Romanticizing Penniless Entrepreneurs?" The Relationship between Start-Ups and Human Wellbeing across Countries

Author

Listed:
  • Naudé, Wim

    () (Maastricht University)

  • Amorós, José Ernesto

    () (Universidad del Desarrollo)

  • Cristi, Oscar

    () (Universidad del Desarrollo)

Abstract

We study the effect of entrepreneurship and its allocation between necessity and opportunity entrepreneurship on three indicators of countries' wellbeing: monetary wellbeing, non-monetary wellbeing and our own indicator of a country's ability to translate economic growth into non-monetary wellbeing. We take into consideration that there is a feedback effect from monetary and non-monetary wellbeing to entrepreneurial allocation. Using data from the Global Entrepreneurship Monitor we establish that opportunity entrepreneurship may contribute towards national wellbeing and that better wellbeing in turn may stimulate opportunity entrepreneurship. Hence, entrepreneurship may contribute towards countries' wellbeing in a broad sense, and countries with higher levels of wellbeing may contribute towards opportunity entrepreneurship.

Suggested Citation

  • Naudé, Wim & Amorós, José Ernesto & Cristi, Oscar, 2013. ""Romanticizing Penniless Entrepreneurs?" The Relationship between Start-Ups and Human Wellbeing across Countries," IZA Discussion Papers 7547, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7547
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    References listed on IDEAS

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    Keywords

    entrepreneurship; wellbeing; development; Global Entrepreneurship Monitor;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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