Exploration of the Relationship between Cultural-Socio-Economic Determinants and Entrepreneurship

There has been relatively little empirical analysis of the role played by cultural-social-economic policies to promote entrepreneurship. Governments, for instance, conduct different entrepreneurship promotion policies. Financial assistance and easing of bureaucratic rules are provided to improve the entrepreneurship process in a country. Entrepreneurs benefit from education and skills, which are planned and subsidized by governments to provide an appropriate environment for business. So, it seems government policies on education promotion and human development, for instance, are important factors affecting entrepreneurship. Additionally, growth in total investment and savings expand economic capacity for further activities by entrepreneurs. The objective of this paper is to explore a causal relationship between entrepreneurship and its main determinants through regression analysis. We employ data on education, human development, property rights, the rule of law and some economic variables in 123 selected countries over the period 2000-2005 to estimate the entrepreneurship regression model by the panel data approach. The implication is that education, economic growth and optimal government policies can encourage entrepreneurship

Exploration of the Relationship between Cultural-Socio-Economic Determinants and Entrepreneurship Keywords:

Entrepreneurship , education , human development index , economic indicators , panel data