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Knowledge and Culture on Entrepreneurship

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  • Petrakis, Panagiotis
  • Kostis, Pantelis

Abstract

The paper contributes to the interpretation of entrepreneurship based on the effect of knowledge and the cultural background. Entrepreneurship is defined as both the self-employment and the entry density rates, comparing the two models. The present paper uses a series of variables to express these effects, which are analysed with a principal component analysis and a regression analysis. The results confirm that cultural background strongly affects both entrepreneurship rates. Knowledge creation does not affect entrepreneurship rates, as its impact on entrepreneurship is long-lasting (it could reach more or less 10 years) and not a short-term one. Simultaneously, knowledge impact affects negatively the self-employment rates and positively the entry density rates in the economies. Furthermore, performing a sensitivity analysis on knowledge and cultural background, the conclusions confirm that cultural background has a strong interpretive role in both entrepreneurship rates. Moreover, under the new prevailing conditions the creation of knowledge and the impact of knowledge have a negative effect on self-employment, while the effect of knowledge impact is strengthened in the cases where we increase knowledge and it is weakened where we decrease the knowledge variables.

Suggested Citation

  • Petrakis, Panagiotis & Kostis, Pantelis, 2012. "Knowledge and Culture on Entrepreneurship," MPRA Paper 50541, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:50541
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    More about this item

    Keywords

    Cultural background; Entrepreneurship; Entry density; Knowledge; Self-employment;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • Z1 - Other Special Topics - - Cultural Economics

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