Necessity or Opportunity? The Effects of State Fragility and Economic Development on Entrepreneurial Efforts

José Ernesto Amorós, Luciano Ciravegna, Vesna Mandakovic and Pekka Stenholm

Entrepreneurship Theory and Practice, 2019, vol. 43, issue 4, 725-750

Abstract: This paper studies the effects of state fragility and economic development on necessity and opportunity-based individual entrepreneurial efforts. We contribute to the literature on the contextual determinants of entrepreneurship by examining multilevel data on 956,925 individuals from 51 countries for the period of 2005–2013. We show that state fragility has a positive effect on necessity-based entrepreneurial efforts while hindering opportunity-based efforts. Our findings illustrate that the level of economic development moderates the relationship between state fragility and necessity-driven entrepreneurial efforts reducing the likelihood of the latter. We discuss the implications for theory and for proentrepreneurship policy.

Keywords: institutional theory; government policy/regulation; necessity based entrepreneurship (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (54)

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Working Paper: Necessity or opportunity? the effects of State fragility and economic development on entrepreneurial efforts (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:43:y:2019:i:4:p:725-750

DOI: 10.1177/1042258717736857

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