Underlying Factors National Entrepreneurial Activity: A Cross-Country Study

Erman A Sumirat () and Sunu Widianto ()
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Erman A Sumirat: Research Division, Laboratory of Management FE UNPAD
Sunu Widianto: Research Division, Laboratory of Management FE UNPAD

No 201007, Working Papers in Business, Management and Finance from Department of Management and Business, Padjadjaran University

Abstract: Entrepreneurship has been regarded as one of the important factors that support growth and socioeconomic development of a country because it can provides so many jobs, which ultimately will improve the welfare state and competitive advantage (Zahra, 1999). Prior studies have been conducted research which is none of the comprehensive approach taken to explain the factors that encourage entrepreneurial activity that occurred in various countries around the world (Lee and Peterson, 2000). Therefore this study used a multidiscilpinary approach to understanding the phenomenon of entrepreneurship activity with a coherent paradigm that has not been widely explored as proposed by Aldrich and Baker (1997). This study found that Individualism negatively significant influence TEA which means the higher level of individualism of a country the lower Entrepeneurial activity. Moreover, cost enforcing contracts significantly influence national entrepreneurial activity which means the higher level of cost enforcing contracts the higher level of TEA.

Keywords: total entrepreneurship activity (TEA); competitiveness; entrepreneurship (search for similar items in EconPapers)
JEL-codes: G0 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2010-07, Revised 2010-07
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Citations: View citations in EconPapers (1)

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