Business Environment and New Firm Creation: An International Comparison

Economic development and business creation

“…Also, higher income leads to higher and more diversified demand. However, while GDP per capita and GDP per capita growth were found to be positively related to new business creation in some specifications (Carbonara et al 2016;Dyck and Ovaska 2011;Munemo 2017;Quesada et al 2007;van Stel et al 2004) some studies did not find a significant relationship (Estrin et al 2016).…”

“…Some examples of economic variables considered in this line of research are GDP per capita and GDP per capita growth (Carbonara et al 2016;Dyck and Ovaska 2011;Estrin et al 2016;Munemo 2017;Quesada et al 2007;Thai and Turkina 2014;Verheul et al 2006), unemployment (Estrin et al 2016;van Stel et al 2004), foreign investment (Munemo 2017;Sun et al 2017) and the labor income share of total income (Carree et al 2007;Noorderhaven et al 2004).…”

“…Population characteristics may also influence new businesses creation. Some factors considered in the past are population density (Colombelli and Quatraro 2018;Dyck and Ovaska 2011;Noorderhaven et al 2004), the importance of family (Verheul et al 2006), life satisfaction (Sciascia et al 2013), population growth (Acs et al 1994;van Stel et al 2004;Wennekers et al 2005), age structure of population (van Stel et al 2004) and education (Estrin et al 2016;van Stel et al 2004).…”

Influence of fear of failure and kiasuism on entrepreneurial intention

“…A corrupted environment can also impact entrepreneurial activity; corruption can be in the form of tax and can impose financial stress on entrepreneurs. It was found that government corruption was negatively associated with new firm start-ups in 64 countries (Dyck & Ovaska, 2011). Corruption not only is a barrier to entry, it was also found to constrain growth aspiration of entrepreneurs across 42 countries (Estrin et al, 2013).…”

“…Even with sound business ideas, the lack of capital can hinder the attempt to execute the plan (Dyck & Ovaska, 2011). Studies found that difficulties in obtaining financial support and perceived lack of support were some of the barriers to entrepreneurship in many countries (Kolvereid, Shane, & Westhead, 1993;Shinnar, Giacomin, & Janssen, 2012).…”