Institutional determinants of necessity-driven entrepreneurship

This preprint is the first part of the Necessity-driven Entrepreneurship: a cross-country Analysis project. In this paper we identify determinants of necessity-driven entrepreneurship in developed and developing countries. We describe the differences in the socio-demographic characteristics of necessity- and opportunity-driven entrepreneurs, as well as their perceptions and aspirations. The main content of this research determines the significant factors in the regulatory, normative, and cognitive pillars of the institutional environment. Using the databases of World Bank, the International Labour Organization, the Global Entrepreneurship Monitor survey, the Doing Business, and the World Economic Forum, the set of the variables of the institutional environment was defined. These data are from 2009 to 2014, and range across 70 countries.