Advertisement

Journal of International Entrepreneurship

, Volume 16, Issue 4, pp 504–546 | Cite as

Entrepreneurship, economic development, and institutional environment: evidence from OECD countries

  • Rafik AbdesselamEmail author
  • Jean Bonnet
  • Patricia Renou-Maissant
  • Mathilde Aubry
Article

Abstract

The purpose of this article is to establish a typology of entrepreneurship for OECD countries over the 1999–2012 period. Our aim is to draw a distinction between managerial and entrepreneurial economies, to identify groups of countries with similar economic and entrepreneurial activity variables, and to determine the economic and institutional drivers of entrepreneurial activities in each group. We show that the level of development, sectoral specialization, and institutional variables related to entrepreneurship, functioning of the labor market, and openness of the country are decisive to understand differences in entrepreneurship activity across countries. Results show that the pre-crisis period, from 1999 to 2008, is a period of growth favorable to entrepreneurship. The financial crisis involved a break in entrepreneurial dynamism, with agricultural economies withstanding the financial crisis better. The 2010–2012 period of recovery is a period of a sharp slowdown in entrepreneurial activity, during which the countries that are less dependent on the financial sector proved to be the most resilient in terms of entrepreneurial activity. Nevertheless, it is the advanced knowledge economies with developed financial markets, fewer institutional regulatory constraints, and greater scope for qualitative entrepreneurship that show lower unemployment rates. These findings have important implications for the implementation of public policy in order to promote entrepreneurial activity and reduce unemployment.

Keywords

Entrepreneurship Data analysis methods Entrepreneurial/managerial economies 

Résumé

L’objectif de cet article est d’élaborer une typologie des activités entrepreneuriales des pays de l’OCDE durant la période 1999–2012. Notre intention est d’établir une distinction entre les économies managériales et entrepreneuriales, d’identifier des groupes de pays ayant des comportements économiques et entrepreneuriaux similaires et d’identifier les déterminants économiques et institutionnels des activités entrepreneuriales dans chaque groupe. Nous montrons que le niveau de développement, la spécialisation sectorielle ainsi que les variables institutionnelles liées à l’entrepreneuriat, au fonctionnement du marché du travail et à l’ouverture du pays sont déterminants pour appréhender les différences nationales en matière d’activité entrepreneuriale. Les résultats montrent que la période antérieure à la crise, 1999–2008, est une période de croissance favorable à l’entrepreneuriat. La crise financière a provoqué une rupture du dynamisme entrepreneurial; ce sont les économies agricoles qui ont le mieux résisté à la crise financière. La période de reprise 2010–2012 est une période de fort ralentissement de l’activité entrepreneuriale, durant laquelle les économies dépendant largement du secteur financier sont les plus affectées par la crise en terme d’activité entrepreneuriale. Néanmoins ce sont les économies avancées de la connaissance caractérisées par des marchés financiers développés, peu de contraintes institutionnelles de régulation et un entrepreneuriat de qualité qui affichent les taux de chômage les plus faibles. Ces résultats ont des implications importantes pour la mise en œuvre des politiques publiques visant à promouvoir l’entrepreneuriat et à réduire le chômage.

JEL codes

L26 C38 O1 

Notes

Acknowledgments

The authors would like to thank the reviewers for their helpful comments in improving the paper. All insufficiencies remain the authors’ responsibility.

References

  1. Abdesselam R, Bonnet J, Renou-Maissant P (2014) Typology of the French regional development: revealing the refugee versus Schumpeter effects in new-firm start-ups. Appl Econ 46(28):3437–3451.  https://doi.org/10.1080/00036846.2014.931920 CrossRefGoogle Scholar
  2. Acs ZJ (2006) How is entrepreneurship good for economic growth? Innov: Technol Gov Glob 1(1):97–107.  https://doi.org/10.1162/itgg.2006.1.1.97 CrossRefGoogle Scholar
  3. Acs ZJ, Amoros JE (2008) Introduction: the startup process. Estud Econ 35:121–132Google Scholar
  4. Acs ZJ, Szerb L (2007) Entrepreneurship, economic growth and public policy. Small Bus Econ 28(2-3):109–122.  https://doi.org/10.1007/s11187-006-9012-3 CrossRefGoogle Scholar
  5. Acs ZJ, Carlson B, Karlsson C (1999) The linkages among entrepreneurship, SMEs and the macroeconomy. In: Acs ZJ, Carlson B, Karlsson C (eds) Entrepreneurship, small and medium-sized enterprises and the macroeconomy. Cambridge University Press, Cambridge, pp 3–42Google Scholar
  6. Acs ZJ, Autio E, Szerb L (2014) National systems of entrepreneurship: measurement issues and policy implications. Res Policy 43(3):476–494.  https://doi.org/10.1016/j.respol.2013.08.016 CrossRefGoogle Scholar
  7. Aernoudt R (2004) Incubators, tool for entrepreneurship. Small Bus Econ 3:127–135CrossRefGoogle Scholar
  8. Aghion P (2014) Attraper sans problème un point de croissance supplémentaire. La Croix, September 8Google Scholar
  9. Aparicio S, Urbano D, Audrestch D (2016) Institutional factors, opportunity entrepreneurship and economic growth; panel data evidence. Technol Forecast Soc Chang 102:45–61.  https://doi.org/10.1016/j.techfore.2015.04.006 CrossRefGoogle Scholar
  10. Aubry M, Bonnet J, Renou-Maissant P (2014a) Entrepreneurship and the business cycle: the “Schumpeter” effect versus the “refugee” effect-a French appraisal based on regional data. Ann Reg Sci 54:23–55.  https://doi.org/10.1007/s00168-014-0645-x. CrossRefGoogle Scholar
  11. Aubry M, Bonnet J, Renou-Maissant P (2014b) Cycle économique et comportement entrepreneurial sur données régionales françaises. Rev Econ Rég Urb 4:643–675Google Scholar
  12. Audretsch DB (2007) Entrepreneurship capital and economic growth. Oxf Rev Econ Policy 23(1):63–78.  https://doi.org/10.1093/oxrep/grm001 CrossRefGoogle Scholar
  13. Audretsch DB, Thurik AR (2000) Capitalism and democracy in the 21st century: from the managed to the entrepreneurial economy. J Evol Econ 10(1-2):17–34.  https://doi.org/10.1007/s001910050003 CrossRefGoogle Scholar
  14. Audretsch DB, Thurik AR (2001) What’s new about the new economy? Sources of growth in the managed and entrepreneurial economies. Ind Corp Chang 10(1):267–315.  https://doi.org/10.1093/icc/10.1.267 CrossRefGoogle Scholar
  15. Baumol WJ (1990) Entrepreneurship, productive, unproductive and destructive. J Polit Econ 98(5, Part 1):893–921.  https://doi.org/10.1086/261712 CrossRefGoogle Scholar
  16. Bögenhold D, Fachinger U (2008) Do service sector trends stimulate entrepreneurship? A socio-economic labour market perspective. Int J Serv Econ Manag 1:117–134Google Scholar
  17. Bögenhold D, Heinonen J, Akola E (2017) Self-employment and independent professionals: labour market transitions and myths of entrepreneurship. In: Bonnet J, Dejardin M, Garcia Perez De Lema D (eds) Exploring the entrepreneurial society: institutions, behaviors and outcomes. E.E. Publishing, Cheltenham.  https://doi.org/10.4337/9781783472666.00027 CrossRefGoogle Scholar
  18. Bonnet J, Cussy P (2010) High education, sunk costs and entrepreneurship. In: Bonnet J, Garcia Perez De Lema D, Van Auken H (eds) The entrepreneurial society: how to fill the gap between knowledge and innovation. E.E. Publishing, Cheltenham, pp 37–53CrossRefGoogle Scholar
  19. Bonnet J, Garcia Perez De Lema D, Van Auken H (2010) The entrepreneurial society: how to fill the gap between knowledge and innovation. E.E. Publishing, Cheltenham.  https://doi.org/10.4337/9781849806480 CrossRefGoogle Scholar
  20. Bonnet J, Brau T, Cussy P (2011) Entrepreneurial decision-making. In: Dana LP (ed) World encyclopedia of entrepreneurship. E.E. Publishing, Cheltenham, pp 65–79.  https://doi.org/10.4337/9781849808453.00014 CrossRefGoogle Scholar
  21. Bosma N, Schutjens V (2011) Understanding regional variation in entrepreneurial activity and entrepreneurial attitude in Europe. Ann Reg Sci 47(3):711–742.  https://doi.org/10.1007/s00168-010-0375-7 CrossRefGoogle Scholar
  22. Bruton G, Ahlstrom D (2003) An institutional view of China’s venture capital industry: explaining the differences between China and the West. J Bus Ventur 18(2):233–260.  https://doi.org/10.1016/S0883-9026(02)00079-4 CrossRefGoogle Scholar
  23. Carree M, Van Stel A, Thurik AR, Wennekers S (2007) The relationship between economic development and business ownership revisited. Entrep Reg Dev 19:281–291CrossRefGoogle Scholar
  24. CGPME (2005) Jeunes et seniors: regards croisés sur l'entreprise. Enquête Ipsos/Planète PME. http://www.ipsos.fr/ipsos-public-affairs/actualites/2005-05-18-jeunes-et-seniors-regards-croises-sur-l-entreprise. Accessed May 2005
  25. Craig B, Jackson W, Thomson J (2003) On SBA-guaranteed lending and economic growth. Working Paper, Federal Reserve Bank of ClevelandGoogle Scholar
  26. Du K, O’Connor A (2017) Entrepreneurship and advancing national level economic efficiency. Small Bus Econ.  https://doi.org/10.1007/s11187-017-9904-4
  27. Dwyer GP, Lothian JR (2011) The financial crisis and recovery: why so slow? Federal Reserve Bank of Atlanta. https://www.frbatlanta.org/cenfis/publications/notesfromthevault/1110.aspx.
  28. Escofier B, Pages J (1985) Mise en œuvre de l’AFM pour des tableaux numériques, qualitatifs ou mixtes. Internal publication, IRISAGoogle Scholar
  29. Escofier B, Pages J (1998) Analyses factorielles multiples. Dunod, ParisGoogle Scholar
  30. Fachinger U, Frankus A (2017) Self-employment and pensions—is old age poverty the inevitable dark side of an entrepreneurial society? In: Bonnet J, Dejardin M, Garcia Perez De Lema D (eds) Exploring the entrepreneurial society: institutions, behaviors and outcomes. E.E. Publishing, Cheltenham.  https://doi.org/10.4337/9781783472666.00029 CrossRefGoogle Scholar
  31. Faggio G, Silva O (2012) Does self-employment measure entrepreneurship? Evidence from Great Britain. Discussion papers n°0109, Spatial Economics Research Centre, London School of EconomicsGoogle Scholar
  32. GEM (Global Entrepreneurship Monitor) (2002) Global report. Reynolds PD, Bygrave WD, Autio E, Cox LW, Hay M. Founding and Sponsoring Institution: Babson College, Ewing Marion Kauffman Foundation, London Business SchoolGoogle Scholar
  33. GEM (Global Entrepreneurship Monitor) (2004) Executive report. Acs ZJ, Arenius P, Hay M, Minniti M, with contributions from Bosma N, Wennekers S, Carbonell S, Harding R, and Kam WP. Founding and Sponsoring Institutions: Babson College, Babson Park, MA, USA, London Business School, London, UK, Managing Editor: Mick HancockGoogle Scholar
  34. GEM (Global Entrepreneurship Monitor) (2006). Summary results. Bosma N and Harding R. Founding and Sponsoring Institution: Babson College and London Business SchoolGoogle Scholar
  35. GEM (Global Entrepreneurship Monitor) (2009) Executive report. Bosma N and Levie J, with contributions from Bygrave WD, Justo R, Lepoutre J and Terjesen S. Founding and Sponsoring Institutions, Babson College, Babson Park, MA, United StatesGoogle Scholar
  36. GEM (Global Entrepreneurship Monitor) (2011). Global report. Kelley D, Singer S and Herrington M. Founding and Sponsoring Institutions: Babson College, Babson Park, MA, United States, Universidad del Desarrollo, Santiago, Chile, Universiti Tun Abdul Razak, Kuala Lampur, Malaysia, London Business School, London, United KingdomGoogle Scholar
  37. GEM (Global Entrepreneurship Monitor) (2013). Global report. Ernesto Amorós J, Bosma N. Founding and Sponsoring Institution: Universidad del Desarrollo, Santiago, Chile, Universiti Tun Abdul Razak, Kuala Lumpur, Malaysia, London Business School, London, United KingdomGoogle Scholar
  38. GEM (Global Entrepreneurship Monitor) (2014). Global report. Slavica Singer, José Ernesto Amorós, Daniel Moska Arreola. Founding and Sponsoring Institution: Babson College, Babson Park, MA, United States, Universidad del Desarrollo, Santiago, Chile, Universiti Tun Abdul Razak, Kuala Lumpur, Malaysia, Tecnológico de Monterrey, Monterrey, Mexico, London Business School, London, United Kingdom.Google Scholar
  39. GEM (Global Entrepreneurship Monitor) (2015–2016). Global report. Donna Kelley, Slavica Singer, Mike Herrington. Founding and Sponsoring Institution: Babson College, Babson Park, MA, United States, Universidad del Desarrollo, Santiago, Chile, Universiti Tun Abdul Razak, Kuala Lumpur, Malaysia, London Business School, London, United KingdomGoogle Scholar
  40. GEM (Global Entrepreneurship Monitor) (2016–2017). Global report. Mike Herrington, Penny Kew. Founding and Sponsoring Institution: Babson College, Babson Park, MA, United States; London Business School, London, United Kingdom; Universidad del Desarrollo, Santiago, Chile; Universiti Tun Abdul Razak, Malaysia; Tecnológico de Monterrey, MexicoGoogle Scholar
  41. Hill J (2012) Why did Australia fare so well in the global financial crisis? In: Ferran E, Moloney N, Hill JG, Coffee JC (eds) The regulatory aftermath of the global financial crisis. Sydney Law School Research Paper n°12/35, Cambridge University Press, Cambridge, pp 203–300CrossRefGoogle Scholar
  42. Klapper L, Love I (2011) The impact of the financial crisis on new firm registration. Econ Lett 113(1):1–4.  https://doi.org/10.1016/j.econlet.2011.05.048 CrossRefGoogle Scholar
  43. Koellinger PD (2008) Why are some entrepreneurs more innovative than others? Small Bus Econ 31(1):21–37.  https://doi.org/10.1007/s11187-008-9107-0 CrossRefGoogle Scholar
  44. Koellinger PD, Thurik AR (2012) Entrepreneurship and the business cycle. Rev Econ Stat 94(4):1143–1156.  https://doi.org/10.1162/REST_a_00224 CrossRefGoogle Scholar
  45. Kuznets S (1966) Modern economic growth. Yale University Press, New HavenGoogle Scholar
  46. Lucas RE (1978) On the size distribution of business firms. Bell J Econ 9(2):508–523.  https://doi.org/10.2307/3003596 CrossRefGoogle Scholar
  47. Martinez-Fierro S, Biedma-Ferrer JM, Ruiz-Navarro J (2016) Entrepreneurship and strategies for economic development. J Small Bus Econ 47(4):835–851.  https://doi.org/10.1007/s11187-016-9738-5 CrossRefGoogle Scholar
  48. Mitchell RK, Busenitz L, McDougall PP, Morse EA (2002) Toward a theory of entrepreneurial cognition: rethinking the people side of entrepreneurship research. Entrep Theory Pract 27(2):93–104.  https://doi.org/10.1111/1540-8520.00001 CrossRefGoogle Scholar
  49. Mueller SL, Thomas AS (2000) Culture and entrepreneurial potential: a nine country study of locus of control and innovativeness. J Bus Ventur 16:51–75CrossRefGoogle Scholar
  50. Naudé W (2010) Entrepreneurship, developing countries, and development economics: new approaches and insights. Small Bus Econ 34(1):1–12.  https://doi.org/10.1007/s11187-009-9198-2 CrossRefGoogle Scholar
  51. Nissan E, Martin MAG, Picazo MTM (2011) Relationship between organizations, institutions, entrepreneurship and economic growth process. Int Entrep Manag J 7(3):311–324.  https://doi.org/10.1007/s11365-011-0191-2 CrossRefGoogle Scholar
  52. North D (1990) Institutions, institutional change and economic performance. Cambridge University Press, Cambridge.  https://doi.org/10.1017/CBO9780511808678 CrossRefGoogle Scholar
  53. OECD (2009) The impact of the global crisis on SME and entrepreneurship financing and policy responses. Centre for Entrepreneurship, SMEs and Local DevelopmentGoogle Scholar
  54. OECD (2013) Entrepreneurship at a glance. OECD Publishing.  https://doi.org/10.1787/entrepreneur_aag-2013-en
  55. Parker SC (2009) The economics of entrepreneurship. Cambridge University Press, Cambridge.  https://doi.org/10.1017/CBO9780511817441 CrossRefGoogle Scholar
  56. Pinho JC (2017) Institutional theory and global entrepreneurship: exploring differences between factor- versus innovation-driven countries. J Int Entrep 15(1):56–84.  https://doi.org/10.1007/s10843-016-0193-9 CrossRefGoogle Scholar
  57. Retis (2007) Rapport Bécard sur le renforcement des coopérations entre les structures d’appui à l’innovation et à la création d’entreprises, les écoles d’ingénieurs et les écoles de management. Ministère de l'économie des finances et de l'industrie, FranceGoogle Scholar
  58. Sambharya R, Musteen M (2014) Institutional environment and entrepreneurship: an empirical study across countries. J Int Entrep 12(4):314–330.  https://doi.org/10.1007/s10843-014-0137-1 CrossRefGoogle Scholar
  59. Scott WR (1995) Institutions and organizations. Sage Publications, Thousand OaksGoogle Scholar
  60. Shapero A (1975) The displaced, uncomfortable entrepreneur. Psychol Today 9:83–88Google Scholar
  61. Sholman G, Van Stel A, Thurik AR (2012) Entrepreneurial activity and the cycle: the roles of observation frequency and economic openness. Extern rapport n° H201218, EIM Business and Policy Research, ZoetermeerGoogle Scholar
  62. Siemer M (2014) Firm entry and employment dynamics in the Great Recession. Working paper, Federal ReserveGoogle Scholar
  63. Simón-Moya V, Revuelto-Taboada L, Guerrero RF (2014) Institutional and economic drivers of entrepreneurship: an international perspective. J Bus Res 67(5):715–772.  https://doi.org/10.1016/j.jbusres.2013.11.033 CrossRefGoogle Scholar
  64. Solomon, D (2014) The recovery from the global financial crisis of 2008: missing in action. Euromonitor International. http://blog.euromonitor.com/2014/11/the-recovery-from-the-global-financial-crisis-of-2008-missing-in-action.html. Accessed 20 Nov 2014
  65. Storey DJ (1991) The birth of new firms—does unemployment matter? A review of the evidence. Small Bus Econ 3(3):167–178.  https://doi.org/10.1007/BF00400022 CrossRefGoogle Scholar
  66. Syrquin M (1988) Patterns of structural change. In: Chenery H, Srinivasan TN (eds) Handbook of development economics. Elsevier, Amsterdam/New York, pp 203–273CrossRefGoogle Scholar
  67. Szerb L, Aidis R, Acs ZJ (2013) A comparative analysis of Hungary’s entrepreneurial performance in the 2006–2010 time period based on the Global Entrepreneurship Monitor and the Global Index methodologies. Found Trends Entre 9(1):1–142.  https://doi.org/10.1561/0300000046 CrossRefGoogle Scholar
  68. The Economist (2013) Norway: the rich cousin. The Economist. http://www.economist.com/news/special-report/21570842-oil-makes-norway-different-rest-region-only-up-point-rich. Accessed 2 Feb2013
  69. Thurik AR (2011) From the managed to the entrepreneurial economy: considerations for developing and emerging countries. In: Naudé W (ed) Entrepreneurship and economic development. Palgrave Macmillan, England, pp 147–165.  https://doi.org/10.1057/9780230295155_7 CrossRefGoogle Scholar
  70. Thurik AR, Carree MA, Van Stel A, Audretsch DB (2008) Does self-employment reduce unemployment? J Bus Ventur 23(6):673–686.  https://doi.org/10.1016/j.jbusvent.2008.01.007 CrossRefGoogle Scholar
  71. Valdez M, Richardson J (2013) Institutional determinants of macro-level entrepreneurship. Entrep Theory Pract 37(5):1149–1175.  https://doi.org/10.1111/etap.12000 CrossRefGoogle Scholar
  72. Van Stel A, Carree MA (2004) Business ownership and sectoral growth; an empirical analysis of 21 OECD countries. Int Small Bus J 22(4):389–419.  https://doi.org/10.1177/0266242604044306 CrossRefGoogle Scholar
  73. Van Stel A, Carree MA, Thurik AR (2005) The effect of entrepreneurial activity on national economic growth. Small Bus Econ 24(3):311–321.  https://doi.org/10.1007/s11187-005-1996-6 CrossRefGoogle Scholar
  74. Van Stel A, Storey DJ, Thurik AR (2007) The effect of business regulations on nascent and young business entrepreneurship. Small Bus Econ 28(2-3):171–186.  https://doi.org/10.1007/s11187-006-9014-1 CrossRefGoogle Scholar
  75. Verheul I, Van Stel A (2007) Entrepreneurial diversity and economic growth. Extern rapport n° H200701, EIM Business and Policy Research, ZoetermeerGoogle Scholar
  76. Wennekers S (2006) Entrepreneurship at country level: economic and non-economic determinants. Doctoral Thesis, Erasmus Research Institute of Management (ERIM)Google Scholar
  77. Wennekers S, Van Stel A, Carree M, Thurik AR (2010) The relationship between entrepreneurship and economic development: is it U-shaped? Found Trends Entrep 6(3):167–237.  https://doi.org/10.1561/0300000023 CrossRefGoogle Scholar
  78. Wong PYH, Autio E (2005) Entrepreneurship, innovation and economic growth: evidence from the GEM data. Small Bus Econ 24(3):335–350.  https://doi.org/10.1007/s11187-005-2000-1 CrossRefGoogle Scholar
  79. World Bank (2014) World development indicators. Size of the economy. http://wdi.worldbank.org/table/1.1#.
  80. Zhang M, Gao Q, Cho H-S (2017) The effect of sub-national institutions and international entrepreneurial capability on international performance of export-focused SMEs: evidence from China and South Korea. J Int Entrep 15(1):85–110.  https://doi.org/10.1007/s10843-016-0196-6 CrossRefGoogle Scholar
  81. Zwan P, Thurik R, Verheul I, Hessels J (2016) Factors influencing the entrepreneurial engagement of opportunity and necessity entrepreneurs. Eurasian Bus Rev 6:273–295CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2017

Authors and Affiliations

  1. 1.Lumière Lyon 2, COACTIS, EA 4161, Faculty of Economics and ManagementUniversity of LyonLyon Cedex 07France
  2. 2.NORMANDIE UNIV, UNICAEN, CNRS, CREMFaculty SEGGAT, University of Caen NormandyCaenFrance
  3. 3.METIS Research DepartmentManagement School of NormandyCaen Cedex 4France

Personalised recommendations