Macro-Level Conditions of National Entrepreneurship

This study analyzes the impact of macro-level conditions on national entrepreneurship across least-developed, developing, and developed countries. Using the panel data analysis method on a sample of 135 countries for the period 2006–2019, the findings reveal distinct patterns in the factors influencing national entrepreneurship across varying levels of development. Specifically, in least-developed countries, gross domestic product (GDP) per capita is a fundamental economic condition, while the time required to start a business and profit tax are key institutional factors to foster national entrepreneurship. Social conditions play a minimal or insignificant role in influencing entrepreneurial activity. In developing countries, fostering national entrepreneurship involves concentrating on enhancing economic conditions such as GDP growth and exports as well as improving social factors like private sector credit and urbanization. Additionally, reducing the time required to start a business is crucial for improving institutional entrepreneurial conditions and fostering national entrepreneurship. In developed countries, fostering national entrepreneurship requires enhancing economic conditions such as GDP growth, GDP per capita, and imports, while selectively restricting exports. Furthermore, strengthening urbanization as a social condition is crucial, as institutional entrepreneurial conditions no longer significantly influence national entrepreneurship.