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Entrepreneurship Ecosystem in the Middle East and North Africa (MENA) pp 53–93Cite as

Institutions and Entrepreneurship in MENA Countries

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Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

This chapter describes the concepts of entrepreneurship and institutions and reviews and categorizes the different types of institutions and entrepreneurship. After this, the factors influencing entrepreneurship are identified and classified into two categories—institutional and non-institutional. It is also known that economic, legal, managerial, educational, social, cultural, and political environments affect entrepreneurship. In this chapter, only institutional factors are taken into account, and their theoretical relationship is examined. The conclusion is that institutions are important in the entrepreneurial process. Entrepreneurs can also play an important role in the process of institutional change; thus, a bidirectional causal relationship is found between institutions and entrepreneurship. In the empirical section, the status of institutional quality, the entrepreneurial environment, and the relationship between them in Middle East and North Africa (MENA) countries are analysed. It is concluded that the status of these variables is inadequate and opportunity-driven entrepreneurs can create institutional changes in these countries.

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Notes

  1. 1.

    To further study the differences, see Nelson and Sampat (2001) p. 31ff.

  2. 2.

    To further study this area, see Lin and Nugent (1995).

  3. 3.

    For causes of this forgetfulness, see Ripsas (1998).

  4. 4.

    To read more about these concept and types, see the references listed in Table 2.

  5. 5.

    To read more, see Naudé (2010, p. 87–90).

  6. 6.

    See Greenfield and Strickon (1981).

  7. 7.

    See Bosma et al. (2005).

  8. 8.

    For further reading of about 23 concepts of entrepreneurship in books of principles of economics, see Kent and Rushing (1999) and for 13 separate roles of an entrepreneur, see Wennekers and Thurik (1999).

  9. 9.

    To further study the four theories, see Acemoglu et al. (2003).

  10. 10.

    For more information, see these references and El Harbi and Anderson (2010), Li et al. (2006), and Kuchar (2015).

  11. 11.

    Li et al. (2006) believe that facilitating an institutional change is the most attractive practice that can be pursued by an entrepreneur. But it should be noted that the entrepreneur in this case, in addition to market risk, is also facing institutional risk (the risk of failure of institutional change) and thus needs political understanding and skills.

  12. 12.

    Some researchers like Van der Steen and Groenewegen (2009) distinguish between Institutional, Policy, and Political entrepreneurship, but others like Henrekson and Sanandaji (2011) consider them to be the same. Some researchers also like Henrekson and Sanandaji (2011) consider business and market entrepreneurship equivalent to Schumpeterian entrepreneurship, which is different from political entrepreneurship.

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  1. Department of Economics, Shiraz University, Shiraz, Iran

    Ali Hussein Samadi

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  1. Chairholder, UNESCO Chair in Entrepreneurship, Paris, France

    Nezameddin Faghih

  2. Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

    Mohammad Reza Zali

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Samadi, A.H. (2018). Institutions and Entrepreneurship in MENA Countries. In: Faghih, N., Zali, M. (eds) Entrepreneurship Ecosystem in the Middle East and North Africa (MENA). Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-75913-5_3

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