Institutional Dimensions and Entrepreneurial Activity: An International Study

Small Business Economics, 42(4), 703-716, April 2014

Posted: 4 May 2018

See all articles by David Urbano

David Urbano

Autonomous University of Barcelona

Claudia Alvarez

Universidad EAFIT; Autonomous University of Barcelona

Date Written: April 17, 2014

Abstract

The purpose of this article is to examine the influence of institutional dimensions (regulative, normative and cultural-cognitive) on the probability of becoming an entrepreneur. The main findings demonstrate, through logistic regression, that a favourable regulative dimension (fewer procedures to start a business), normative dimension (higher media attention for new business) and cultural-cognitive dimension (better entrepreneurial skills, less fear of business failure and better knowing of entrepreneurs) increase the probability of being an entrepreneur. Data were obtained from both the Global Entrepreneurship Monitor and the International Institute for Management and Development for the year 2008, considering a sample of 30 countries and 36,525 individuals. The study advances the literature by providing new information on the environmental factors that affect entrepreneurial activity in the light of institutional economics. Also, the research could be useful for designing policies to foster entrepreneurship in different environments.

Keywords: Entrepreneurial Activity, Entrepreneurship, Institutional Dimensions, Regulative Dimension, Normative Dimension, Cultural-Cognitive Dimension, GEM

JEL Classification: L26

Suggested Citation

Urbano, David and Alvarez, Claudia, Institutional Dimensions and Entrepreneurial Activity: An International Study (April 17, 2014). Small Business Economics, 42(4), 703-716, April 2014, Available at SSRN: https://ssrn.com/abstract=3164376

David Urbano

Autonomous University of Barcelona ( email )

Edifici B, Campus UAB
Bellaterra, Barcelona 08193
Spain
34935811209 (Phone)

HOME PAGE: http://www.davidurbano.eu

Claudia Alvarez (Contact Author)

Universidad EAFIT ( email )

Carrera 49 N° 7 sur – 50
Medellín, Antioquia 00000
Colombia

Autonomous University of Barcelona ( email )

Bellaterra, Barcelona 08193
Spain

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