How has formal institutions influenced opportunity and necessity entrepreneurship? The case of brics economies

Abstract

Using a panel data of BRICS economies, this study looks at how formal institutions have influenced various types of entrepreneurship. The study concentrated mainly on the following formal institutional factors: fiscal freedom, business freedom, property rights, financial freedom, labour freedom, and investment freedom. For the opportunity entrepreneurship, the result is not statistically significant. With the exception of business freedom, the remaining institutional factors have negative relationship with opportunity entrepreneurship. Fiscal freedom and business freedom show negative significant relationship with necessity entrepreneurship. The result also shows that business freedom has a negative significant effect on female opportunity entrepreneurship. The study further reveals that fiscal freedom, business freedom and financial freedom have a negative significant effect on men necessity entrepreneurship. Population growth has a positive effect on all categories of entrepreneurship whiles unemployment contributes negatively to all categories of entrepreneurship.

Entrepreneurial Intention among Rural Youth in Moroccan Agricultural Cooperatives: The Future of Rural Entrepreneurship

“…In fact, fear of failure negatively influences entrepreneurial intention of the youth. This entails assuring concrete measures in the field of entrepreneurship, in particular access to finance, training, and improving business climate [40,42,44]. Therefore, our third hypothesis is as follows: Hypothesis 3 (H3).…”

“…According to their study, individuals who become opportunistic entrepreneurs consider many factors, which include the economic environment as well as institutional and governmental policies. A number of authors also argue how personal knowledge, past experience, and entrepreneurial skills can help to enhance the process of identifying investment opportunities for young adults [44,45].…”

A Paradigm Shift in Unemployment Based on the Role of Business Ownership: Ghana as Case

“…Fuentelsaz, Maicas, and Montero (2018), research on the impact of existing and operational institutions on the different forms of entrepreneurship A clear examination of the preceding research did not address formal institutions (Porfí rio, Mendes & Felí cio, 2018) on the forms of entrepreneurship as well as gender components (Fuentelsaz, Maicas, & Montero, 2018), making generalization impossible. In lieu of this, (Udimal et al, 2020) attempted to fill the vacuum by examining how formal institutions have affected opportunity and necessity entrepreneurship in the instance of Brazil, Russia, India, China and South Africa (BRICS) nations, with an emphasis on gender. His findings revealed that institutions had a detrimental impact on the two forms of entrepreneurship.…”

Women Entrepreneurship and Household Wellbeing: An Exploratory Study of Khyber Pakhtunkhwa

“…There are two broad kinds of entrepreneurs of which one is the Opportunity-Driven entrepreneur while the other is Necessity-Driven entrepreneur. An Opportunity-Driven entrepreneur is the one who recognizes opportunity in the form of business idea and exploit it (Udimal, Luo, Liu & Mensah, 2020), in order to prove their identity and abilities (Jamali, 2009). On the other side a Necessity-Driven entrepreneur is the one who is driven by the need of self-realization or other circumstances like lack of job opportunities and financial needs (Kobia, & Sikalieh, 2009;Udimal et al, 2020).…”