From the perspective of the human development paradigm, the United Nations Development Programme (UNDP) emphasizes the importance of supporting entrepreneurial activities as a mechanism for people to improve their living conditions and get to do and be what they really want. However, although public policies to support entrepreneurship are within the framework of the human development paradigm, there is a lack of studies to facilitate understanding of how and through what factors entrepreneurship can be encouraged, as an activity that favors people to lead the life they really want.
The objective of this study was to provide new evidence about the effect of human development in the entrepreneurship. Therefore, human capability approach was used as theoretical framework. Similarly, an empirical analysis was carried out by principal components analysis technique, for grouping of development indicators, of World Bank and of the United Nations, and the creation of Basic Instrumental Freedoms Index (ILIB), which was used as independent variable in the estimation of models by means of panel data. The results provide new evidence that suggests that the growth of ILIB encourages innovative entrepreneurship and decreases necessity entrepreneurship.
Keywords: Innovative entrepreneurship, necessity entrepreneurship, human development, capability approach, instrumental freedom.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.