Table A1. Determinants of... | Emerald Publishing

Table A1.

Determinants of entrepreneurship – synthesis of a set of empirical studies

Study	Countries (no.)	Period	Method	Proxy for the entrepreneurship rate	Determinants’ categories	Independent variables	Proxy for the independent variables	Description	Results
Brás and Soukiazis (2019)	26 developed countries	2004–2011	Dynamic panel data GMM – generalized method of moments	Total entrepreneurial activity rate (TEA) – the percentage of the population able to develop a professional activity that is actively involved in setting up a business, whether in business start-ups (nascent entrepreneurs) or 42 months after the birth of a business unit (owner-managers of new companies)	Individual	Social and cultural	Education Index100	Represents the average level of education of adults and the expected level of education for children	0
					Macroeconomic	Economic formal factors	Paid-in minimum capital	The paid-in minimum capital requirement is the amount that the entrepreneur needs to deposit in a bank before registration and up to three months following incorporation and it is recorded as a percentage of the economy’s income per capita. It is an observable variable that belongs to the factor “starting a business.”	−−−
						Economic informal factors	Monetary Freedom	Represents the absence of market distortions caused by the inflation rate and price controls	+++
						Economic informal factors	Investment Freedom	Represents the absence of investment restrictions	+
						Competitiveness	Financial Market Development	Reflects the funding efficiency level for the economy and the capital market stage	+++
Dileo and Pereiro (2019)	49 countries		Multilevel binary logistic regression models	Nascent entrepreneur: individuals who are actively involved in a business that must not have been paying wages for more than three months; 0 for those who are not Nascent Entrepreneurs. Young entrepreneur: individuals whose business has been paying income, such as salaries or drawings, for more than three months, but not more than 42 months; 0 for those who are not Young Entrepreneurs. Established entrepreneur: individuals whose business has been paying income, such as salaries or drawings, for more than 42 months; 0 for those who are not Established, Entrepreneurs	Individual	Socio-economic and demographic	Age	Individual’s age	+++
							Age2	Individual’s age (squared)	−−−
							Gender	(1 Man, 0 Woman)	+++
							Education	Graduate education (1/0)	+++
							Work status	Working (1/0)	+++
							Income level	Upper 33% (1/0)	++
						Perceptual	Opportunity	Measures individuals’ confidence in the prospects for success with a new business in the area where they live	+++
							Fear of failure	Measures individuals perceived opportunities	−−−
							Entrepreneurial skills and experience	Measures individuals’ confidence in their knowledge, skill and experience for entrepreneurship	+++
							Knows other entrepreneurs	Measures the existence of a network of social contacts linked to entrepreneurship	+++
					Macroeconomic	Macroeconomic	GDP per capita	GDP per capita PPP (constant international dollars)	–
							GDP per capita annual growth	Measures the change of the GDP per capita between t and t−1 periods (that is the nation compared to the previous year), with respect to the year	0
							Unemployment rate	The share of the labor force that is unemployed (jobless)	0
					Institutional	Institutional	Tax burden (fiscal freedom)	Based on a 100-point scale in which a score of 100 indicates total fiscal freedom. The score measures the top marginal tax rates on individual income and corporate income, and the total tax burden as a percentage of GDP, each component is weighted equally (one-third)	+
							Freedom to establish firms	Based on a four-point scale in which a score of 4 indicates total freedom to establish firms and a score of 0 indicates no establishment possible	++
							Postmaterialism	Indicates the percentage of individuals that are classified as postmaterialistic according to the 4-item Postmaterialist index	0
Hoogendoorn et al. (2016)	30 OECD countries	1984–2010	OLS estimator	Country’s business ownership rate (the share of the labor force that is a business owner as primary occupation)	Institutional	Religion	Belonging	Refers to belonging to a religious community or (transhistorical) group with a common history and future	0
							Believing	Is considered a basic universal aspect of religion	++
							Bonding	Refers to “self-transcendent experiences that bond the individual with what it perceives to be the transcendent “reality with others, and/or with the inner-self”	0
							Behaving	Refers to the behaviour of an individual according to the norms and moral standards associated with one’s religious convictions	++
Fang et al. (2020)	30	1980–2008	Panel data fixed effects	Domestic entrepreneurship rate: The percentage of the civilian labor force that is self-employed	Macroeconomic	Presence of Foreign ventures		Inward FDI stock as a percentage of GDP	+++ (short term); 0(long term)
Li (2021)	67	2014	Logistic regressions	Total entrepreneurial activity rate (TEA) – the percentage of the population able to develop a professional activity that is actively involved in setting up a business, whether in business start-ups (nascent entrepreneurs) or 42 months after the birth of a business unit (owner-managers of new companies)	Individual	Individual-level predictors	Self-efficacy	Implies whether the respondents possess the knowledge, skills and experience needed to start a firm (0 5 no; 1 5 yes)	+++
							Fear of failure	Is measured by questioning respondents whether fear of failure prevents starting a new venture (0 5 yes; 1 5 no)	+++
							Perceived opportunity	Is determined by creating a variable in response to the following question: “In the next six months will there be good opportunities for starting a business in the area where you live?” (0 5 no; 1 5 yes)	+++
					Institutional	Country-level predictors	Regulatory condition	The regulatory pillar is measured by the average scores for seven questions about government policies, laws, support programmes and regulations associated with entrepreneurship	−−
							Normative condition	Regulates individual behaviour by defining what is expected and appropriate in a social situation, it affects an individual’s cognition of pursuing an entrepreneurial activity as a career by rendering that choice socially legitimate	0
							Cognitive condition	The cultural-cognitive pillar is measured using the quality of countries’ higher education systems with respect to entrepreneurship by looking at aspects such as education about firm formation, start-up education and management education	0
Pinillos and Reyes (2011)	52	1999–2007	OLS	Total entrepreneurial activity rate (TEA) – the percentage of the population able to develop a professional activity that is actively involved in setting up a business, whether in business start-ups (nascent entrepreneurs) or 42 months after the birth of a business unit (owner-managers of new companies)	Macroeconomic	Macroeconomic	Gross domestic product per capita at the country level	The variable GDPPC measures the mean GDPPC, expressed in constant US$2,000	−−−
Pinillos and Reyes (2011)	52	1999–2007	OLS		Institutional	Institutional	Individualist–collectivist national culture	The I–C index takes values between 0 and 100. Higher values indicate countries with individualist cultures, while lower values indicate more collectivist cultures	+++
Ghosh (2017)	79	2001–2012	Panel data (fixed effects)	Total early-stage entrepreneurship (TEA)	Institutional	Institutional	Regulation	Regulation is a measure of restrictions that impede credit, labor, and product market activities. It includes credit market regulations, labor regulations and business regulations	++
Ghosh (2017)	79	2001–2012	Panel data (fixed effects)	Total early-stage entrepreneurship (TEA)	Institutional	Institutional	Freedom to trade internationally	Emphasizes the different measures that increase the cost of engaging in international trade. This takes into account measures of taxation on international trade, barriers to trade (like tariffs and quotas), size of the trade sector, international capital market controls, etc	−−−
Gautam and Lal (2021)	20	2001-2016	Fixed effect estimators in a panel regression	Total early-stage entrepreneurship (TEA)	Macroeconomic	Economic growth	GDP per capita (adjusted PPP)	It is adjusted by using purchasing power parity per us dollar	+++
Gautam and Lal (2021)	20	2001-2016	Fixed effect estimators in a panel regression	Total early-stage entrepreneurship (TEA)	Macroeconomic	Competitiveness	Growth competitiveness index	GCI is based on three relevant pillars, namely, technological index, public institution index and macroeconomic environmental index	+++

Study	Countries (no.)	Period	Method	Proxy for the entrepreneurship rate	Determinants’ categories	Independent variables	Proxy for the independent variables	Description	Results
Brás and Soukiazis (2019)	26 developed countries	2004–2011	Dynamic panel data GMM – generalized method of moments	Total entrepreneurial activity rate (TEA) – the percentage of the population able to develop a professional activity that is actively involved in setting up a business, whether in business start-ups (nascent entrepreneurs) or 42 months after the birth of a business unit (owner-managers of new companies)	Individual	Social and cultural	Education Index100	Represents the average level of education of adults and the expected level of education for children	0
					Macroeconomic	Economic formal factors	Paid-in minimum capital	The paid-in minimum capital requirement is the amount that the entrepreneur needs to deposit in a bank before registration and up to three months following incorporation and it is recorded as a percentage of the economy’s income per capita. It is an observable variable that belongs to the factor “starting a business.”	−−−
						Economic informal factors	Monetary Freedom	Represents the absence of market distortions caused by the inflation rate and price controls	+++
						Economic informal factors	Investment Freedom	Represents the absence of investment restrictions	+
						Competitiveness	Financial Market Development	Reflects the funding efficiency level for the economy and the capital market stage	+++
Dileo and Pereiro (2019)	49 countries		Multilevel binary logistic regression models	Nascent entrepreneur: individuals who are actively involved in a business that must not have been paying wages for more than three months; 0 for those who are not Nascent Entrepreneurs. Young entrepreneur: individuals whose business has been paying income, such as salaries or drawings, for more than three months, but not more than 42 months; 0 for those who are not Young Entrepreneurs. Established entrepreneur: individuals whose business has been paying income, such as salaries or drawings, for more than 42 months; 0 for those who are not Established, Entrepreneurs	Individual	Socio-economic and demographic	Age	Individual’s age	+++
							Age2	Individual’s age (squared)	−−−
							Gender	(1 Man, 0 Woman)	+++
							Education	Graduate education (1/0)	+++
							Work status	Working (1/0)	+++
							Income level	Upper 33% (1/0)	++
						Perceptual	Opportunity	Measures individuals’ confidence in the prospects for success with a new business in the area where they live	+++
							Fear of failure	Measures individuals perceived opportunities	−−−
							Entrepreneurial skills and experience	Measures individuals’ confidence in their knowledge, skill and experience for entrepreneurship	+++
							Knows other entrepreneurs	Measures the existence of a network of social contacts linked to entrepreneurship	+++
					Macroeconomic	Macroeconomic	GDP per capita	GDP per capita PPP (constant international dollars)	–
							GDP per capita annual growth	Measures the change of the GDP per capita between t and t−1 periods (that is the nation compared to the previous year), with respect to the year	0
							Unemployment rate	The share of the labor force that is unemployed (jobless)	0
					Institutional	Institutional	Tax burden (fiscal freedom)	Based on a 100-point scale in which a score of 100 indicates total fiscal freedom. The score measures the top marginal tax rates on individual income and corporate income, and the total tax burden as a percentage of GDP, each component is weighted equally (one-third)	+
							Freedom to establish firms	Based on a four-point scale in which a score of 4 indicates total freedom to establish firms and a score of 0 indicates no establishment possible	++
							Postmaterialism	Indicates the percentage of individuals that are classified as postmaterialistic according to the 4-item Postmaterialist index	0
Hoogendoorn et al. (2016)	30 OECD countries	1984–2010	OLS estimator	Country’s business ownership rate (the share of the labor force that is a business owner as primary occupation)	Institutional	Religion	Belonging	Refers to belonging to a religious community or (transhistorical) group with a common history and future	0
							Believing	Is considered a basic universal aspect of religion	++
							Bonding	Refers to “self-transcendent experiences that bond the individual with what it perceives to be the transcendent “reality with others, and/or with the inner-self”	0
							Behaving	Refers to the behaviour of an individual according to the norms and moral standards associated with one’s religious convictions	++
Fang et al. (2020)	30	1980–2008	Panel data fixed effects	Domestic entrepreneurship rate: The percentage of the civilian labor force that is self-employed	Macroeconomic	Presence of Foreign ventures		Inward FDI stock as a percentage of GDP	+++ (short term); 0(long term)
Li (2021)	67	2014	Logistic regressions	Total entrepreneurial activity rate (TEA) – the percentage of the population able to develop a professional activity that is actively involved in setting up a business, whether in business start-ups (nascent entrepreneurs) or 42 months after the birth of a business unit (owner-managers of new companies)	Individual	Individual-level predictors	Self-efficacy	Implies whether the respondents possess the knowledge, skills and experience needed to start a firm (0 5 no; 1 5 yes)	+++
							Fear of failure	Is measured by questioning respondents whether fear of failure prevents starting a new venture (0 5 yes; 1 5 no)	+++
							Perceived opportunity	Is determined by creating a variable in response to the following question: “In the next six months will there be good opportunities for starting a business in the area where you live?” (0 5 no; 1 5 yes)	+++
					Institutional	Country-level predictors	Regulatory condition	The regulatory pillar is measured by the average scores for seven questions about government policies, laws, support programmes and regulations associated with entrepreneurship	−−
							Normative condition	Regulates individual behaviour by defining what is expected and appropriate in a social situation, it affects an individual’s cognition of pursuing an entrepreneurial activity as a career by rendering that choice socially legitimate	0
							Cognitive condition	The cultural-cognitive pillar is measured using the quality of countries’ higher education systems with respect to entrepreneurship by looking at aspects such as education about firm formation, start-up education and management education	0
Pinillos and Reyes (2011)	52	1999–2007	OLS	Total entrepreneurial activity rate (TEA) – the percentage of the population able to develop a professional activity that is actively involved in setting up a business, whether in business start-ups (nascent entrepreneurs) or 42 months after the birth of a business unit (owner-managers of new companies)	Macroeconomic	Macroeconomic	Gross domestic product per capita at the country level	The variable GDPPC measures the mean GDPPC, expressed in constant US$2,000	−−−
Pinillos and Reyes (2011)	52	1999–2007	OLS		Institutional	Institutional	Individualist–collectivist national culture	The I–C index takes values between 0 and 100. Higher values indicate countries with individualist cultures, while lower values indicate more collectivist cultures	+++
Ghosh (2017)	79	2001–2012	Panel data (fixed effects)	Total early-stage entrepreneurship (TEA)	Institutional	Institutional	Regulation	Regulation is a measure of restrictions that impede credit, labor, and product market activities. It includes credit market regulations, labor regulations and business regulations	++
Ghosh (2017)	79	2001–2012	Panel data (fixed effects)	Total early-stage entrepreneurship (TEA)	Institutional	Institutional	Freedom to trade internationally	Emphasizes the different measures that increase the cost of engaging in international trade. This takes into account measures of taxation on international trade, barriers to trade (like tariffs and quotas), size of the trade sector, international capital market controls, etc	−−−
Gautam and Lal (2021)	20	2001-2016	Fixed effect estimators in a panel regression	Total early-stage entrepreneurship (TEA)	Macroeconomic	Economic growth	GDP per capita (adjusted PPP)	It is adjusted by using purchasing power parity per us dollar	+++
Gautam and Lal (2021)	20	2001-2016	Fixed effect estimators in a panel regression	Total early-stage entrepreneurship (TEA)	Macroeconomic	Competitiveness	Growth competitiveness index	GCI is based on three relevant pillars, namely, technological index, public institution index and macroeconomic environmental index	+++

Note:

+++(++)[+]/−−−(−−)[−] positive/negative statistically significant at 1% (5%) [10%]; 0: not significant

Source: Own elaboration

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