Exploring Country-Level Institutional Arrangements on the Rate and Type of Entrepreneurial Activity

50 Pages Posted: 13 Jul 2010 Last revised: 16 Nov 2011

See all articles by Pekka Stenholm

Pekka Stenholm

University of Turku, School of Economics

Zoltan J. Acs

Schar School of Policy and Government

Robert Wuebker

University of Utah - David Eccles School of Business

Date Written: July 14, 2010

Abstract

This study introduces a novel multidimensional measure of the entrepreneurial environment that reveals how differences in institutional arrangements influence both the rate and the type of entrepreneurial activity in a country. Drawing from institutional theory, the measure examines the regulatory, normative, and cognitive dimensions of entrepreneurial activity, and introduces a novel conducive dimension that measures a country’s capability to support high-impact entrepreneurship. Our findings suggest that differences in institutional arrangements are associated with variance in both the rate and type of entrepreneurial activity across countries. For the formation of innovative, high-growth new ventures, the regulative environment matters very little. For high-impact entrepreneurship an institutional environment filled with new opportunities created by knowledge spillovers and the capital necessary for high-impact entrepreneurship matter most.

Keywords: Entrepreneurship Indicator, High-Impact Entrepreneurship, Institutional Theory

JEL Classification: L26

Suggested Citation

Stenholm, Pekka and Acs, Zoltan J. and Wuebker, Robert, Exploring Country-Level Institutional Arrangements on the Rate and Type of Entrepreneurial Activity (July 14, 2010). GMU School of Public Policy Research Paper No. 2010-18, Available at SSRN: https://ssrn.com/abstract=1639433 or http://dx.doi.org/10.2139/ssrn.1639433

Pekka Stenholm (Contact Author)

University of Turku, School of Economics ( email )

Rehtorinpellonkatu 3
Turku, FI-20014
Finland

Zoltan J. Acs

Schar School of Policy and Government ( email )

Founders Hall
3351 Fairfax Dr.
Arlington, VA 22201
United States
703-993-1780 (Phone)

HOME PAGE: http://home.ubalt.edu/zacs

Robert Wuebker

University of Utah - David Eccles School of Business ( email )

1645 East Campus Circle Drive
Salt Lake City, UT 84112-9304
United States

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