Academic journal article International Journal of Entrepreneurship

Macroeconomic Effects of Entrepreneurship: Evidences from Factor, Efficiency and Innovation Driven Countries

Academic journal article International Journal of Entrepreneurship

Macroeconomic Effects of Entrepreneurship: Evidences from Factor, Efficiency and Innovation Driven Countries

Article excerpt


Entrepreneurship drives innovation, social change, and economic development locally, regionally, nationally, and worldwide (Konczal, 2013). The activities, relationships, and entities utilized to enhance entrepreneurial activity are just one important part of what scholars have termed the entrepreneurial ecosystem, in acknowledgement of the interconnectedness of these factors with other market dimensions. The notion of entrepreneurial ecosystems has become increasingly prevalent in the entrepreneurship policy literature (Acs et al., 2014; Auerswald, 2015; Drexler et al., 2014; Spigel, 2017; Stam et al., 2014). The entrepreneurial ecosystems approach seeks to understand the environment around the entrepreneurs and entrepreneurship in an economy and appreciate its effects on performance (Acs et al., 2017) but also on medium- and long-term structural forces that might be even more important. A key element is the interdependence of actors and factors in a particular community that leads to value creation in a certain territory, that is, entrepreneurship is the output of the entrepreneurial ecosystem.

The construct of entrepreneurial ecosystems has grown in popularity, appealing to the imaginations of consultants, policy-makers, educators, investors, influencers, researchers, opinion leaders and entrepreneurs that can play an important role in the development and level of entrepreneurial activity for a particular environment. Factors such as access to entrepreneurial finance, government support and policies, government entrepreneurship programs, entrepreneurship education, policies that lead to transfer of research and development, legal and commercial infrastructure, market dynamics in relation to business change and openness, ease of entry regulations, the business and protection of intellectual property rights, including the constituent factors, is an entrepreneurial ecosystem. These factors create a complex relationship between economic actors that encourage them to create an entrepreneurial society. This research is based on this perspective and aims at understanding and identifying the role of entrepreneurial ecosystems in entrepreneurial activities. Although knowledge about entrepreneurship has increased, different stages of entrepreneurship are different throughout the development process of an economy. Social, cultural and ideological barriers can affect entrepreneurship and, ultimately, affect people's willingness to participate in entrepreneurial activities (Carter et al., 2003). In the literature, two models explain the relationship between economic development and entrepreneurship. In the first model, this relationship is explained by the difference in economic activity between the development stages, while; In the second one, in order to explain the relationship between entrepreneurship and economic development, the motivation of entrepreneurial activities as an explanatory variable is examined (Reynolds, 2011).

Entrepreneurship can generate employment, innovation, increase production, and diversify the economy source of revenue while fostering the development of small and medium enterprises. The aggregated value created by domestic and international entrepreneurial ventures can be estimated at national level as component of gross domestic product and exports, while the higher employment rate transforms into increased level and quality of internal demand, satisfied with a higher volume of domestic and imported products. Therefore, the main questions that this research seeks to answer are:

1. How does the entrepreneurial ecosystem affect the promotion of entrepreneurial activities in different stages of development process?

2. What is the contribution of entrepreneurship to the economic development through employment generation, GDP growth, and import and export activities?

3. How do the entrepreneurial activities affect the performance of macroeconomic indicators in different stages of development process? …

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