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The effect of the institutional environment on entrepreneurial activity: a cross-country study
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This research examines the effects of the institutional environment on entrepreneurial activity among a cross-country sample. Motivated by the considerable effect of entrepreneurship on economic development, the research investigates whether individual opportunity perception contributes to entrepreneurial activity. The institutional environment is assessed based on Scott’s three institutional pillars, divided into regulatory, cognitive, and normative dimensions. Entrepreneurial activity is measured as the overall quantity of entrepreneurship and the rate of high-growth strategic entrepreneurship. The analysis is based on linear regression models using the Global Entrepreneurship Monitor. Findings show that individual opportunity perceptions and the institutional environment have a considerable impact on entrepreneurial activity.
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Entreprenerueship Institutional theory Gem Global entrepreneurship monitor Environmental framework conditions