Institutions, finance and the level of development:the impact on entrepreneurship in transition


We investigate the impact of institutions on entrepreneurial entry, based on a large cross-country sample, combining working age population data generated by the GEM project with macro level indicators. Our four key findings indicate that: (a) institutional obstacles to entrepreneurship have different impact in rich countries compared to poor countries; (b) institutional obstacles have a stronger impact on 'opportunity entrepreneurship' than on 'necessity entrepreneurship'; (c) two institutional indicators - property right protection and access to finance - appear to have a dominant impact on entrepreneurship; (d) institutions have a long term impact. More than ten years after the Soviet system imploded in Central and Eastern Europe, these countries still experience significantly lower levels of entrepreneurship than economies coming from different legal traditions.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School
Uncontrolled Keywords: entrepreneurship,property rights,access to finance
Publication ISSN: 2038-1379
Last Modified: 14 Mar 2024 08:10
Date Deposited: 11 Mar 2019 18:15
Full Text Link: http://www.rei. ... rticle/view/3/2
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PURE Output Type: Article
Published Date: 2010
Authors: Aidis, Ruta
Estrin, Saul
Mickiewicz, Tomasz (ORCID Profile 0000-0001-5261-5662)



Version: Published Version

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