Necessity or opportunity? the effects of State fragility and economic development on entrepreneurial efforts
José Amorós Espinosa (),
Vesna Mandakovic () and
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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
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)
Pages: 50 pages
New Economics Papers: this item is included in nep-ent and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:dsr:wpaper:42
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