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Necessity or opportunity? the effects of State fragility and economic development on entrepreneurial efforts

José Ernesto Amorós Espinosa, Luciano Ciravegna, Vesna Mandakovic () and Pekka Stenholm
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Pekka Stenholm: School of Business and Economics, Universidad del Desarrollo

No 42, Serie Working Papers from Universidad del Desarrollo, School of Business and Economics

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 pro-entrepreneurship policy

Keywords: Entrepreneuship; State fragility; Economic development (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent and nep-sbm
Date: 2017-06
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