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Which Institutions Encourage Entrepreneurial Growth Aspirations?

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  • Saul Estrin
  • Julia Korosteleva
  • Tomasz Marek Mickiewicz

Abstract

We develop entrepreneurship and institutional theory to explain entrepreneurial growth aspirations across individuals and institutional contexts. Our framework generates hypotheses at the national level about the negative impact of higher levels of corruption, weaker property rights and greater government activity on entrepreneurs' aspirations to increase employment. Also we explore whether, at the micro level, knowing other entrepreneurs compensates for weaknesses in institutions. We test these hypotheses using the Global Entrepreneurship Monitor surveys in 42 countries for 2001-2006, applying a multilevel estimation framework. We find support for our main hypotheses but intellectual property rights are found to have no explanatory power.

Suggested Citation

  • Saul Estrin & Julia Korosteleva & Tomasz Marek Mickiewicz, 2012. "Which Institutions Encourage Entrepreneurial Growth Aspirations?," UCL SSEES Economics and Business working paper series 119, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:119
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    More about this item

    Keywords

    Entrepreneurship; Growth Aspirations; Employment; Institutions; Corruption; Property Rights; Intellectual Property Rights; Social Networks; Government; Global Entrepreneurship Monitor;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform

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