The Impact of Institutional Dimensions on Entrepreneurial Intentions of Students—International Evidence

Abstract

Acknowledging the role of different forms of entrepreneurship to continued economic prosperity and the role of institutional dimensions on entrepreneurship, this paper investigates if and to what extent a selected number of institutional dimensions influence students’ intentions to either start a company or take over an existing one. Based on a Global University Entrepreneurial Spirit Students’ Survey (GUESS) dataset and international country-level databases, evidence shows that both entrepreneurship options are hampered by corruption and limited business freedom while promoted through favourable labour regulations and trade freedom. Property rights, fiscal freedom, government spending, monetary freedom, and investment freedom only affect start-ups, while financial freedom adversely affects both options. The study provides new insight into the impact of institutional dimensions on different types of entrepreneurship. Thus, in contrast to extant research in this area, it goes beyond the typical focus on start-ups. Evidence also suggests that male students prefer starting a new company, while female students seem to prefer a takeover. This improved understanding could help in not only designing more targeted entrepreneurship and entrepreneurial financing policies but also in improving entrepreneurship education.

Institutional and individual determinants of entrepreneurial intentions: evidence from developing and transition economies

“…In particular, we acknowledge that individuals' perceptions of tax systems, regulations on starting a business (Guerrero and Marozau 2022), and the quality of regulations (Aparicio et al 2016;Korosteleva and Belitski 2017;Bosma et al 2018) and current policies affect their entrepreneurial intentions (Lin and Si 2014) vary. Perceptions about laws, regulations, and government policies that support new businesses and lower the perceived risks of starting a business (Busenitz et al 2000), including favorable regulations (Urbano and Alvarez 2014), positively influence individuals' entrepreneurial intentions (Bakkar et al 2021). Overall, the quality of laws and regulations reflects positively on the level of entrepreneurship at the country level (Valdez and Richardson 2013;Aparicio et al 2016;Chowdhury et al 2019).…”

Intención emprendedora: percepción desde los estudiantes universitarios

“…Por otro lado, Su et al (2021) agregaron que los universitarios tienen más intención de emprender después de la implementación de la educación emprendedora. La razón es que el abrir una empresa requiere de una serie de habilidades y competencias diferentes, dependiendo del tipo de negocio que desee formalizar (Bakkar et al, 2021). En otras palabras es un constructo fundamental para la transformación de un empresario exitoso (Jena, 2020).…”