Economic regulation, opportunity-driven entrepreneurship and gender gap: emerging versus high-income economies

Abstract

PurposeInstitutional environment plays a crucial role in determining the nature of entrepreneurship that prevails in an economy. In this paper, the authors address how business, labour and credit regulations contribute differently to both the overall prevalence of opportunity-driven entrepreneurship (ODE) and its gender gap in high-income and emerging economies.Design/methodology/approachOn the basis of an unbalanced panel of 41 countries over the period 2005–2016, the authors estimate system generalised method of moment models. The authors also perform an ordinary least square analysis to address gender differences in ODE.FindingsThe authors find that higher credit market liberalisation is especially associated with more entrepreneurship by opportunity. Nevertheless, while credit market regulation stands out as a key element to promote opportunity-based entrepreneurship in both high-income and emerging countries, in the emerging world business regulation is also largely related to the prevalence of opportunity entrepreneurship. In terms of gender gap, business and labour market freedom seem to exert an equalising effect on the divide in entrepreneurship by opportunity, specifically in emerging economies.Originality/valueFindings allow the identification of regulatory policy reform priorities to enhance the prevalence of ODE depending on the level of a country's development. They also identify which specific areas of economic regulation would speed up closing the gender gap in opportunity entrepreneurship.

Economic freedom and formal entrepreneurial activity: A longitudinal analysis between the period 2013-2018

“…Empirical research has not provided conclusive results on the effect of economic freedom on entrepreneurial activities. Scholars have analysed the role of formal institutions in different entrepreneurial types as opportunity-driven (Angulo-Guerrero et al, 2017;Bárcena-Martín et al, 2021;Díaz-Casero et al, 2012;Raza et al, 2019), necessity-driven (Goel & Saunoris, 2020;Kuckertz et al, 2016;McMullen et al, 2008), selfemployed (Goetz & Rupasingha, 2014;Nyström, 2008;Özkul, 2020), and the establishment of formal business (Ajide, 2021;Barnatchez & Lester, 2017;Bennett, 2021a;Hall et al, 2016;Kosi & Bojnec, 2013;Raza et al, 2019;Sweidan, 2021). Table 1 summarizes the main empirical and theoretical findings on this topic.…”

Econometric Modeling to Measure the Social and Economic Factors in the Success of Entrepreneurship

“…For Aparicio et al [29], opportunity entrepreneurship is identified as one of those mechanisms that impacts economic growth; furthermore, they indicate that informal institutions have a greater impact on opportunity entrepreneurship than formal institutions. González et al [30] indicates that the discovery of opportunities and the creation of opportunities are mutually exclusive constructions, while credit market regulation stands out as a key element in promoting opportunity-based entrepreneurship in both high-income and emerging countriesBarcena-Martin et al [31]. For Dey [32] entrepreneurship in crisis conditions is not so much a matter of necessity; it is an opportunity to redefine the scope of economic practice with its own rules.…”

The Opportunity Driven Entrepreneurship in the Context of Innovation Systems in Europe in the Period 2010-2019

“…The authors verify that to increase opportunity driven entrepreneurship, elements relating to social equality, education and sustainability are also relevant together with the presence of a dynamic and favorable economic context. [9] analyze the role of the entrepreneurial, labor, credit, and gender gap system in determining the institutional context favorable to opportunity driven entrepreneurship. The authors analyzed data from 41 countries over the period 2005-2016.…”