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Four enlightening recipes for governments : which contribute to opportunity- and necessity-driven entrepreneurship : a fs/QCA cross-country analysis

Papahnbehbahani, Milad (2019) Four enlightening recipes for governments : which contribute to opportunity- and necessity-driven entrepreneurship : a fs/QCA cross-country analysis.

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Abstract:Entrepreneurship, or entrepreneurial activity, is seen as a main driver for national economic growth. However, entrepreneurial activity needs to be differentiated into: 1) Opportunity-driven entrepreneurial activity, relating to people choosing to become entrepreneurs, and 2) necessitydriven entrepreneurial activity, relating to people who are pushed into entrepreneurship. For governments to foster opportunity-driven entrepreneurial activity, it is key to understand how EFCs (Entrepreneurial Framework Conditions), or combinations of EFCs contribute to the ratio of opportunity- to necessity-driven entrepreneurs in a country. Accordingly, the research question of this study is “Which EFCs or combination of EFCs contributes to opportunity-driven and necessity-driven entrepreneurship?” To answer this question, a systematic literature analysis and a fuzzy-set Qualitative Comparative Analysis (fs/QCA) are executed to outline combinations of EFCs contributing to different outcomes regarding the ratio between opportunity- and necessity-driven entrepreneurs. Four kinds of “compositions” (outcomes) are identified, each with its own recipe, presenting the composition of ingredients (EFCs). Some ingredients are found across outcomes. All cases related to the corresponding recipes are further investigated on economic development stage, to be able to connect the results to potentially related development stages. It has been found that EFCs related to infrastructure (Commercial and Physical), Governmental tax policies, Governmental entrepreneurship programmes and R&D transfer positively relate to opportunity-driven entrepreneurship. Moreover, light is shed on the role of economic development in this relationship, identifying almost entirely innovation-driven economies related to the most dominant opportunity-driven countries. This paper gives practical implications for governments, who need to understand the dynamics of both type of entrepreneurial activity, in order to foster national economic growth.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/77144
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