Exploring the macro conditions for national entrepreneurship: A panel data-based analysis in developing countries
Exploring the macro conditions for national entrepreneurship: A panel data-based analysis in developing countries

Summary/Abstract: Objective: The article aims to analyse the impacts of macro factors on national entrepreneurship, providing insights for policymakers to promote entrepreneurial activities in developing countries. Research Design & Methods: We employed the panel data analysis method and identified the robust fixed-effects model as the most appropriate for our research sample, which we obtained from the open databases of Global Entrepreneurship Monitor (GEM) and the World Bank. Given the unbalanced panel structure, the dataset comprised 37 developing countries, with 173 year-observations over the period 2003 to 2019. Findings: Our findings indicate that economic growth, consumer price index (CPI), government expenditure on education, and Research and Development (R&D) investment positively impact national entrepreneurship of developing countries, whereas unemployment exhibits a negative impact. However, other macro factors such as Gross Domestic Product (GDP) per capita, Foreign Direct Investment (FDI) inflows, import, export, gross national expenditure, labour force quality and entrepreneurial institutions do not show a significant impact on national entrepreneurship of developing countries. Implications & Recommendations: Governments of developing countries should prioritise national entrepreneurship by investing in education, R&D, and controlling inflation at an appropriate level. It is also crucial for these countries to enhance economic growth and address unemployment through entrepreneurship programs and labour market reforms. Contribution & Value Added: This study contributes to the literature by enriching the resource-based view (RBV) and institutional theory on national entrepreneurship and its macro conditions, which governments in developing countries can influence to promote entrepreneurial activities at the macro level. Methodologically, our empirical study strengthens the field by employing panel data analysis on a sample of developing countries. The findings provide policymakers with a clearer perspective for planning strategies and policies to enhance positive factors and mitigate negative ones, fostering an environment conducive to entrepreneurship and sustainable economic development in developing countries.

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