Work detail

Analysis of the determinants of the entrepreneurship in a country

Author: Bc. Michal Palas
Year: 2014 - summer
Leaders: Mgr. Božena Bobková
Consultants:
Work type: Bachelors
Language: Czech
Pages: 50
Awards and prizes: B.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good bachelors diploma thesis.
Link: https://is.cuni.cz/webapps/zzp/detail/137719/
Abstract: This paper aims at explaining the impact of macroeconomic and institutional conditions on cross-
country variation in nascent entrepreneurship. Some authors have found significant effects of
macroeconomic and institutional variables in their papers. We use data from 56 countries involved in the
Global Entrepreneurship Monitor project. We analyse these data from 2006–2012 period using
econometric panel data methods. Our results do not confirm the impact of most of the included
variables. The results show that the established entrepreneurship rate seems to influence the nascent
entrepreneurship rate positively. We also find weak negative effect of amount of paid-in minimum
capital associated with starting business. We test the hypothesis of U-shape relation between economic
development and nascent entrepreneurship rate. Our results support this hypothesis only in the model
without any control variable. The influence of economic development on nascent entrepreneurship rate
is insignificant in our full model.
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