Necessity or Opportunity? The Effects of State Fragility and Economic Development on Entrepreneurial Efforts

José Ernesto Amorós, Luciano Ciravegna, Vesna Mandakovic, Pekka Stenholm

Research output: Contribution to journalArticlepeer-review

156 Citations (Scopus)
202 Downloads (Pure)

Abstract

This paper studies the effects of state fragility and economic development on necessity and opportunity-based individual entrepreneurial efforts. We contribute to the literature on the contextual determinants of entrepreneurship by examining multilevel data on 956,925 individuals from 51 countries for the period of 2005–2013. We show that state fragility has a positive effect on necessity-based entrepreneurial efforts while hindering opportunity-based efforts. Our findings illustrate that the level of economic development moderates the relationship between state fragility and necessity-driven entrepreneurial efforts reducing the likelihood of the latter. We discuss the implications for theory and for proentrepreneurship policy.
Original languageEnglish
Pages (from-to)725–750
Number of pages26
JournalEntrepreneurship: Theory and Practice
Volume43
Issue number4
Early online date17 Nov 2017
DOIs
Publication statusPublished - 1 Jul 2019

Keywords

  • government policy/regulation
  • institutional theory
  • necessity based entrepreneurship

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