Entrepreneurial Activity and Economic Growth of BRICS Countries: Retrospect and Prospects

Abstract

Entrepreneurial activity is generally considered to be an important tool for improving economic growth through innovation and employment. The objective of the study was to determine the relationship among economic growth (GDP), entrepreneurial intention (EI), total early-stage entrepreneurial activity (TEA), established business ownership (EBO) rate and high job creation expectation (HJCE) rate. The research design followed a quantitative approach to annual secondary data from 2014 to 2018 for the BRICS countries (Brazil, Russia, India, China and South Africa). The dynamic ordinary least squares model was used to test the relationship among variables. Results indicated that EI is a significant determinant for economic growth. The study added to the prior literature by confirming that EI drives economic growth which can be useful for the policymakers.

An international study of early-stage entrepreneurship using global entrepreneurship monitor data

“…This rate is defined by the GEM team as the percentage of individuals in the 18-to-64 age range who are either nascent entrepreneurs or owner-managers of new businesses (GEM, 2022). Nascent entrepreneurs are individuals who have invested resources in the process of starting new businesses but have not yet begun to reap the rewards of their production inputs (Gaba and Gaba, 2022). In this paper, we use the closely related but distinct terms, entrepreneurial behaviour and entrepreneurial activity, interchangeably.…”

“…Some literature suggests a circular association: entrepreneurship propels economic activity and growth (Almodóvar-González et al. , 2020; Gaba and Gaba, 2022; Neumann, 2021; Stoica et al. , 2020; Urbano et al.…”

“…This was necessary, as the complex link between entrepreneurial activity and economic growth has long been argued (Carree and Thurik, 2010). Some literature suggests a circular association: entrepreneurship propels economic activity and growth (Almod ovar-Gonz alez et al, 2020; Gaba and Gaba, 2022;Neumann, 2021;Stoica et al, 2020;Urbano et al, 2019), and entrepreneurial growth stimulates further entrepreneurial activity (Thurik, 2011). Perhaps more appropriate to the data which will be presented in the current study is that the rate of entrepreneurial activity is consistently higher in lower-income countries than in high-income countries (GEM, 2022).…”

Fuzzy Methods in Entrepreneurship Research

“…In addition, entrepreneurship has been championed as a way to spur dynamism and efficiency in traditionally risk-resistant institutions, such as public bureaucracies (Kearney et al, 2008;Olumekor, 2024). Entrepreneurship is also promoted in universities and academic institutions (Pacheco et al, 2023), public health (Jacobson et al, 2015), transition economies (Gaba & Gaba, 2022) and for the sustainable development of the planet (Régnier, 2023).…”