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The more the merrier? Economic freedom and entrepreneurial activity

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  • Kuckertz, Andreas
  • Berger, Elisabeth S.C.
  • Mpeqa, Andrew

Abstract

The current research addresses the question of how policy makers might design specific components of economic freedom (EF) to most effectively encourage high levels of entrepreneurial activity (EA). Given that entrepreneurship is a multifaceted phenomenon, the study analyzes the effects of four components of EF on EA and relies on fuzzy-set qualitative comparative analysis (fsQCA) to do so. The research collates data from 63 different countries and analyzes EA as it applies to factor-driven, efficiency-driven, and innovation-driven economies. The current research also differentiates between opportunity-driven entrepreneurship and necessity-driven entrepreneurship. The results suggest that the effects of EF vary according to the developmental stage of an economy and the type of EA in question. The results reveal that simplistic explanations implying that high levels of EF trigger high levels of EA regardless of a country's developmental stage are inadequate.

Suggested Citation

  • Kuckertz, Andreas & Berger, Elisabeth S.C. & Mpeqa, Andrew, 2016. "The more the merrier? Economic freedom and entrepreneurial activity," Journal of Business Research, Elsevier, vol. 69(4), pages 1288-1293.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:4:p:1288-1293
    DOI: 10.1016/j.jbusres.2015.10.094
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    References listed on IDEAS

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    7. Molina, Jose Alberto & Ortega, Raquel & Velilla, Jorge, 2017. "Older entrepreneurs-by-necessity using fuzzy set methods: differences between developed and developing countries," MPRA Paper 76982, University Library of Munich, Germany.
    8. Ioscha Cordier & Marco Bade, 2023. "The relationship between business regulation and nascent and young business entrepreneurship revisited," Small Business Economics, Springer, vol. 61(2), pages 587-616, August.
    9. Burak Erkut, 2016. "Entrepreneurship and Economic Freedom: Do Objective and Subjective Data Reflect the Same Tendencies?," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(3), pages 11-26.
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    13. Ibrahim A. Elshaer & Abu Elnasr E. Sobaih, 2022. "I Think I Can, I Think I Can: Effects of Entrepreneurship Orientation on Entrepreneurship Intention of Saudi Agriculture and Food Sciences Graduates," Agriculture, MDPI, vol. 12(9), pages 1-18, September.
    14. David Urbano & Sebastian Aparicio & David Audretsch, 2019. "Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?," Small Business Economics, Springer, vol. 53(1), pages 21-49, June.
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    17. Abu Elnasr E. Sobaih & Ibrahim A. Elshaer, 2022. "Structural Equation Modeling-Based Multi-Group Analysis: Examining the Role of Gender in the Link between Entrepreneurship Orientation and Entrepreneurial Intention," Mathematics, MDPI, vol. 10(20), pages 1-23, October.
    18. Shinkle, George A. & Hodgkinson, Gerard P. & Gary, Michael Shayne, 2021. "Government policy changes and organizational goal setting: Extensions to the behavioral theory of the firm," Journal of Business Research, Elsevier, vol. 129(C), pages 406-417.
    19. Yoon, Hyungseok (David) & Kim, Namil & Buisson, Bernard & Phillips, Fred, 2018. "A cross-national study of knowledge, government intervention, and innovative nascent entrepreneurship," Journal of Business Research, Elsevier, vol. 84(C), pages 243-252.
    20. Jeffrey Kouton & Rafiou R. Bétila & Moïse Lawin, 2021. "The Impact of ICT Development on Health Outcomes in Africa: Does Economic Freedom Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1830-1869, December.
    21. Jorge Velilla & Raquel Ortega, 2017. "Determinants of entrepreneurship using fuzzy set methods: Europe vs. non-Europe," Applied Economics Letters, Taylor & Francis Journals, vol. 24(18), pages 1320-1326, October.

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