MACRO-LEVEL DRIVERS OF BUSINESS CREATION: INSIGHTS FROM WORLD BANK PANEL DATA
MACRO-LEVEL DRIVERS OF BUSINESS CREATION: INSIGHTS FROM WORLD BANK PANEL DATA

Summary/Abstract: This study analyses how macroeconomic conditions influence the growth of registered entrepreneurial activity, quantified by the number of newly established firms per country. The research relies on World Bank datasets spanning 145 nations over a 17-year period (2006–2022). Using panel data regression, the findings indicate that higher GDP per capita and increased tax revenue positively correlate with the formation of limited liability companies (LLCs). On the other hand, the unemployment rate proves to have a negative correlation, indicating that higher unemployment levels hinder the development of formal entrepreneurial activity. These results highlight the importance of economic stability and institutional transparency in promoting the creation of formal entrepreneurship. By leveraging World Bank data, this study provides robust empirical insights for policymakers aiming to enhance entrepreneurial ecosystems through targeted economic policies

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