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Institutional variables, entrepreneurial activity and economic development

Juan Carlos Díaz Casero (University of Extremadura, Cáceres, Spain)
Manuel Almodóvar González (University of Extremadura, Cáceres, Spain)
María de la Cruz Sánchez Escobedo (University of Extremadura, Cáceres, Spain)
Alicia Coduras Martínez (Nebrija University, Madrid, Spain)
Ricardo Hernández Mogollón (University of Extremadura, Cáceres, Spain)

Management Decision

ISSN: 0025-1747

Article publication date: 1 March 2013

Abstract

Purpose

The aim of this study is to analyze the impact of institutions on entrepreneurship in groups of countries classified according to their economic development.

Design/methodology/approach

Data used come from the Global Entrepreneurship Monitor, the Economic Freedom in the World Index; and from the Global Competitiveness Report.

Findings

The results provide useful information for the public and private sectors as evidence that some institutional variables that influence business creation depend on the development stage and report critical aspects to progress in each type of country in order to foster entrepreneurship. In developing nations the “size of the business sector” and “health and primary education” are critical variables, while for transition economies they stack the “integrity of the legal system” and “fulfilling contracts” and for developed economies the “size of the government” and “credit available to the private sector”.

Originality/value

This study constitutes an unusual approach because the literature on the impact of institutions on entrepreneurship is very scarce.

Keywords

Citation

Carlos Díaz Casero, J., Almodóvar González, M., de la Cruz Sánchez Escobedo, M., Coduras Martínez, A. and Hernández Mogollón, R. (2013), "Institutional variables, entrepreneurial activity and economic development", Management Decision, Vol. 51 No. 2, pp. 281-305. https://doi.org/10.1108/00251741311301821

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited