EXAMINING THE IMPACT OF ENTREPRENEURIAL ACTIVITY ON EMPLOYMENT AND ECONOMIC GROWTH: THE CASE OF THE VISEGRÁD COUNTRIES

Background: South Africa has made significant progress since the dawn of democracy in 1994. It registered positive economic growth rates and its real gross domestic product (GDP) per capita increased from R42 849 in 1994 to over R56 000 in 2015. However, employment growth lagged behind GDP growth, resulting in rising unemployment. Aim and setting: Entrepreneurship brings together labour and capital in generating income, output and employment. According to South Africa’s National Development Plan, employment growth would come mainly from small-firm entrepreneurship and economic growth. Accordingly, this article investigates the impact unemployment and per capita income have on early stage total entrepreneurship activity (TEA) in South Africa, using data covering the 1994–2015 period. Methods: The methodology used is the dynamic least squares regression. The article tests the assertion that economic growth, proxied by real per capita GDP income, promotes entrepreneurship and that high unemployment forces necessity entrepreneurship. Results: The regression results indicate that per capita real GDP, which increases with economic growth, has a highly significant, positive impact on entrepreneurial activity, while unemployment has a weaker effect. A 1% rise in real per capita GDP results in a 0.16% rise in TEA entrepreneurship, and a 1% rise in unemployment is associated with a 0.25% rise in TEA. Conclusion: There seems to be a strong pull factor, from income growth to entrepreneurship and a reasonable push from unemployment to entrepreneurship, as individuals without employment are forced to self-employment as a necessity, survival mechanism. Overall, a long-run co-integrating relationship seems plausible between unemployment, income and entrepreneurship in South Africa.

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Gender and Entrepreneurship in Developing Economies

Handbook of Research on Entrepreneurial Leadership and Competitive Strategy in Family Business - Advances in Business Strategy and Competitive Advantage ◽

10.4018/978-1-5225-8012-6.ch001 ◽

2019 ◽

pp. 1-21

Author(s):

Rob Kim Marjerison

Keyword(s):

Economic Growth ◽

Women Entrepreneurs ◽

Developing Economies ◽

New Ventures ◽

Entrepreneurial Activity ◽

Relative Importance ◽

Policy Makers ◽

Entrepreneurship Training ◽

Global Economic Growth ◽

The Impact

This chapter begins with a brief exploration of the importance of entrepreneurial activity as a driver of global economic growth. The importance of entrepreneurship in developing economies is examined as are the traits, motivations, and drivers of entrepreneurs and the economic, social, cultural, legislative, and regulatory circumstances that encourage and in some cases discourage entrepreneurial activity. The impact of entrepreneurship training and education on encouraging women entrepreneurs is examined, the relative importance of women entrepreneurs is examined, and emphasis is placed on the relatively greater difficulties that are faced by women entrepreneurs particularly in regards to obtaining funding for starting new ventures. Opportunities are identified that may useful for policy makers, investors, and those that may seek to promote social entrepreneurship and economic growth in developing economies.

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The mediation role of public governance in the relationship between entrepreneurship and economic growth

International Journal of Managerial Finance ◽

10.1108/ijmf-04-2018-0111 ◽

2019 ◽

Vol 16 (3) ◽

pp. 316-333

Author(s):

Allam Mohammed Hamdan ◽

Reem Khamis ◽

Ammar Abdulla Al Hawaj ◽

Elisabetta Barone

Keyword(s):

Economic Growth ◽

United Arab Emirates ◽

Entrepreneurial Activity ◽

Public Governance ◽

Content Type ◽

National Economic ◽

Oil Revenues ◽

The Impact ◽

The Relationship

Purpose The purpose of this paper is to investigate the mediation role of public governance in the relationship between entrepreneurship and economic growth in the United Arab Emirates (UAE). Design/methodology/approach To achieve this aim, the study uses a 20-year time series analysis (1996–2015) and tests the effect of entrepreneurship on economic growth, through public governance, via a mediator model. Findings The study has determined that public governance buoys the positive effect that entrepreneurship activities exert on economic growth in the UAE. Based on this determination, the study posits a set of recommendations that focus on supporting entrepreneurship activities that play a significant role in economic growth. Originality/value The study adds to the literature on the impact of entrepreneurship on economies dependent on oil revenues vis-à-vis a public policy perspective. The study provides insights into the type of entrepreneurship that most efficaciously suits the Emirati social and cultural milieu in terms of fostering national economic growth. In addition, the study limns a vision of the role of public governance in creating an enabling environment that stimulates entrepreneurial activity and, in turn, increases economic growth in the Emirates.

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Comparative analysis of USA and Chinese entrepreneurship: experience for Kazakhstan

The economy: strategy and practice ◽

10.51176/1997-9967-2021-2-86-97 ◽

2021 ◽

Vol 16 (2) ◽

pp. 86-97

Author(s):

A. M. Myrzakhmetova ◽

A. E. Mukhametzhan

Keyword(s):

United States ◽

Economic Growth ◽

Comparative Analysis ◽

Well Being ◽

The United States ◽

Entrepreneurial Activity ◽

Advantages And Disadvantages ◽

The World ◽

Effective Development ◽

The Impact

Вusinesses are the backbone of the national economy and play an important role for the effective functioning of the economy of any country in the world. The authors studied the experience of the United States and China, in which small and medium-sized businesses have been successfully developing for a long time, both during periods of economic growth and during periods of economic recession.The purpose of the article is to study the features and conduct a comparative analysis of the organization of entrepreneurial activity in the United States and China, and, based on the experience of these countries, develop proposals for the effective development of entrepreneurship in Kazakhstan. The authors analyzed the dynamics and factors of the development of small and medium-sized businesses, the advantages and disadvantages of entrepreneurial activity in the United States and China, and identified the impact of the COVID-19 pandemic on entrepreneurial activity in these countries and in Kazakhstan. In the course of the study, various methods of scientific knowledge were used: data collection and processing, economic, comparative and statistical analysis, generalization, synthesis, induction, deduction. We collected and processed fresh quantitative data on the state and dynamics of the development of small and medium-sized enterprises in the United States and China in the period from 2011 to 2021.Small and medium business is an integral and important part of the economic development of all countries of the world, the experience of countries such as the United States and China can be useful and interesting for the Kazakh economy. Entrepreneurship performs a number of important socio-economic functions for the country: providing employment, creating a competitive environment, supporting and introducing innovations, reducing social inequality, attracting natural, human, material and technical resources into the production and commercial process, stimulating economic growth and improving the well-being of people.The authors, based on a study of the experience of entrepreneurial activities of two large leading countries of the world economy, have developed proposals that will contribute to the development of small and medium-sized businesses in the Republic of Kazakhstan.

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The Importance and Role of Entrepreneurship in Economic Growth and Development

International Conference on Eurasian Economies 2014 ◽

10.36880/c05.01041 ◽

2014 ◽

Author(s):

Asım Günal Önce ◽

Mehmet Marangoz ◽

Nedret Erboy

Keyword(s):

Economic Growth ◽

Economic Development ◽

Growth And Development ◽

Well Being ◽

Cultural Development ◽

Entrepreneurial Activity ◽

Production Volume ◽

Economic Growth And Development ◽

Entrepreneurial Spirit ◽

The Impact

Economic growth leads to with increased prosperity with increasing of income levels of people living in a country. Economic development involves social and cultural developments in the economy along with prosperity. Entrepreneurship which is involved in factors of production, labor, capital and technology and brings them together and it takes risks and assess opportunities has an important role in economic growth and development. The basic elements of a country's economic development are individuals who have an entrepreneurial spirit. They are driving force of growth and prosperity. The impact on entrepreneurs' on economic development can be associated with their inventions / scientific research and invention through their innovations, the ability of adaptation innovations, by way of competition raise efficiency, providing employment, making business opportunities and their increasing of production and commercial activities where they are established. In the economies, entrepreneurs increase profits in terms of production volume, stimulating competition and in parallel with leads to the decline prices. In this context, the country's economic growth and development, remaining prosperity affects well-being and quality of life of individuals, their economic prosperity and their social and cultural development. In this study, the role and importance of entrepreneurship in a country's economic growth and development and socio-economic development will be examined in the context of various parameters and in terms of these parameters the relationship between entrepreneurial activity and economic growth will be highlighted.

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ENTREPRENEURSHIP AND ECONOMIC GROWTH NEXUS IN NIGERIA: MODERATING EFFECT OF INSTITUTIONAL QUALITY: ARDL COINTEGRATION APPROACH

EPRA International Journal of Economic and Business Review ◽

10.36713/epra8385 ◽

2021 ◽

pp. 5-19

Author(s):

Yusuf Shamsuddeen Nadabo ◽

Suleiman Maigari Salisu

Keyword(s):

Economic Growth ◽

Positive Impact ◽

Interactive Effect ◽

Institutional Quality ◽

Political Stability ◽

Entrepreneurial Activity ◽

Distributed Lag ◽

Moderator Model ◽

The Impact

This paper explores the relationship between entrepreneurship and economic growth in Nigeria: the moderating role of institutional quality. To accomplish this, the study employs an Autoregressive distributed lag (ARDL) from (2002Q1–2019Q4) and uses a moderator model to examine the impact of entrepreneurship on economic growth via institutional quality. The resilts show that institutional quality in Nigeria has a positive impact on economic growth. The results also indicate that the interactive effect of institutional quality and entrepreneurship has positive effect on economic growth in Nigeria both in the short-run and long-run. The study illustrate that the productive entrepreneurship is a potent vehicle for promoting long term economic growth in Nigeria. In general, unless institutional quality is introduced to improve the influence of entrepreneurship on economic growth, entrepreneurial activity alone may not lead to desired growth. Furthermore, the study presents a perspective of the role of government in establishing an enabling environment that promotes entrepreneurial activity and, as a result, enhances economic growth in Nigeria. Based on this finding, the study recommends for the implimantation of measures and policies aims at encourageing productive entrepreneurial activities that contribute to economic growth. In addition Government and policymakers should improved the quality of institutions such as improving Government Effectiveness, Political Stability and Absence of Violence, Voice and Accountability, Regulatory Quality, Rule of Law and Control of Corruption. KEYWORDS: Economic growth, Entrepreneurship, Moderating, Institutional quality.

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The impact of Job-Growth and Innovative Entrepreneurial Activity on Economic Growth: An International Evidence

10.33107/ubt-ic.2018.318 ◽

2018 ◽

Author(s):

Ermal Lubishtani ◽

Iraj Hashi ◽

Ian Jackson ◽

Besnik Krasniqi

Keyword(s):

Economic Growth ◽

Entrepreneurial Activity ◽

International Evidence ◽

Job Growth ◽

The Impact

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ENTREPRENEURSHIP AND ECONOMIC GROWTH IN WEST BANK, PALESTINE

Journal of Developmental Entrepreneurship ◽

10.1142/s1084946714500034 ◽

2014 ◽

Vol 19 (01) ◽

pp. 1450003 ◽

Cited By ~ 12

Author(s):

ANTON R. SABELLA ◽

WOJDAN A. FARRAJ ◽

MAISA BURBAR ◽

DANA QAIMARY

Keyword(s):

Economic Growth ◽

West Bank ◽

International Aid ◽

Entrepreneurial Activity ◽

The West ◽

Palestinian Territories ◽

Using Data ◽

The Impact ◽

The Relationship ◽

New Jobs

This paper examines the nature of the relationship between entrepreneurship and economic growth in the West Bank of the Palestinian territories that occurred post Oslo Agreement. The paper has two main objectives: first, to examine with empirical evidence the impact of entrepreneurship on economic growth; second, to explore the effect of two control variables on the relationship — checkpoints and international aid — which are unique to this particular study. Using data spanning over a course of sixteen years, various statistical methods were applied to explain the effect of variant levels of entrepreneurial activity on GDP and unemployment. The results show that contrary to a reservoir of research, entrepreneurship appeared to have no significant impact on economic growth. This can be explained by the fact entrepreneurial activity is expected to decrease as a result of growth in the economy as new jobs are created.

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Entrepreneurial Ecosystem, Entrepreneurial Activity and Economic Performance

Business Innovation and Entrepreneurship Journal ◽

10.35899/biej.v1i3.64 ◽

2019 ◽

Vol 1 (3) ◽

pp. 210-220

Author(s):

Kanza Sohail Khanani

Keyword(s):

Economic Growth ◽

Government Policy ◽

National Income ◽

Internal Market ◽

Entrepreneurial Activity ◽

Market Dynamics ◽

Entrepreneurial Ecosystem ◽

Framework Conditions ◽

The Impact ◽

Legal Infrastructure

In this research, we have empirically tested the impact of Entrepreneurial Framework Conditions (EFC) on entrepreneurial activity and ultimately on economic growth of a nation. In our sample all the 54 countries participating in the GEM study in 2017 are taken. 67.8% of the world’s population and 86.0% of the world’s GDP is represented by the economies included in GEM 2017. The entrepreneurial ecosystem is captured through 12 EFCs used in the GEM model that includes: Financial environment, government policy of support and relevance, government policy of taxes and bureaucracy, government programs, entrepreneurial education at school stage and post school stage, R&D transfer, commercial and legal infrastructure, internal market dynamics, access to physical infrastructure, and social and cultural norms. The impact of these EFCs and their significance in creating entrepreneurial activity (TEA) in a nation is analyzed using OLS estimation technique with TEA as dependent variable. Secondly, the impact of entrepreneurial activity (TEA) on economic growth ( ∆GDP) is estimated using OLS regression model with control variables such as global competitiveness index (GCI) and Gross national income per capita, expressed in purchasing power parity (GNIC). The results suggest that entrepreneurship education at post school stage, entry burdens and cultural and social norms are significant framework conditions that support entrepreneurial activity, while R&D transfer, internal market dynamics and commercial and legal infrastructure hinders the process of entrepreneurship. Furthermore, TEA is significantly contributing to the economic growth of factor driven and efficiency driven economies.

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Defence spending and economic growth in the Visegrad countries

Panoeconomicus ◽

10.2298/pan170709029w ◽

2020 ◽

Vol 67 (4) ◽

pp. 539-556

Author(s):

Grzegorz Waszkiewicz

Keyword(s):

Economic Growth ◽

Theoretical Aspect ◽

Short Term ◽

Defence Spending ◽

Defence Sector ◽

The Impact ◽

Empirical Approaches ◽

Visegrád Countries ◽

Do So

This paper aims to consider the impact of military outlays on economic stance in several states in Central Europe. Therefore, we attempted to search the long- and short-range causality between defence spending and economic growth in the Visegrad countries through analysing general values (total spending approach), as well as outlay distribution in the defence sector (spending division approach). To do so, we first presented the theoretical aspect of the problem, as well as the trends in military spending of the considered states since 1993. Second, we reviewed international results of empirical examinations in this area. Then we examined causalities among variables on the grounds of VAR methodology. We did not validate the long-term causality between defence spending and economic growth in the Visegrad countries. Nonetheless, we confirmed several short-term relationships in both empirical approaches.

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