Journal article
The Impact of Public Policy and Infrastructure on Entrepreneurship: A Panel Data Approach
Entrepreneurship and Small Business Review , Vol.1, pp.1-13
2024
Abstract
Various economic models are considering the importance of entrepreneurship development in terms of both physical and human capital. The development of entrepreneurship varies across countries due to the divergence of entrepreneurial framework conditions (EFCs). EFCs determine how easy (or difficult) it is to start up a venture. The key objective of this paper is to observe the effect of EFCs, specifically public policy and infrastructure, on various entrepreneurship activities in Asia. This paper investigates the impact of EFCs (public policy and infrastructure development) on various entrepreneurial activities, including nascent entrepreneurship, new business ownership rate, total early-stage entrepreneurial activity, and established business ownership rate. Ten Asian countries were selected as a sample from 2014 to 2019. Correlation and regression analyses were employed to explore the extent to which EFCs influence different entrepreneurial activities in GEM-participating Asian countries. The overall findings have revealed that commercial and professional infrastructure promote entrepreneurial activities. Conversely, the decline in physical and services infrastructure is associated with a decrease in total early-stage entrepreneurial activity. Meanwhile, these factors have no significant impact on the remaining entrepreneurial activities. Taxes and bureaucracy exhibit a negatively significant relationship with all entrepreneurial activities. On the other hand, governmental support and policies show a positively significant relationship with the nascent entrepreneurship rate and established business ownership rate, while having an insignificant relationship with the other entrepreneurial activities.
This study contributes to the evolution of various policies for fostering entrepreneurship growth. It recommends that well-established infrastructure and favorable institutions are essential for nurturing entrepreneurship in developing countries in Asia.
Details
- Title
- The Impact of Public Policy and Infrastructure on Entrepreneurship: A Panel Data Approach
- Authors/Creators
- Ummara Fatima (Corresponding Author) - Murdoch University, Murdoch Business SchoolUzma Bashir - Minhaj University LahoreSundas Sohail
- Publication Details
- Entrepreneurship and Small Business Review , Vol.1, pp.1-13
- Publisher
- University of the Punjab's Hailey College of Commerce
- Identifiers
- 991005855887807891
- Copyright
- © Copyright pu.edu.pk.
- Murdoch Affiliation
- Murdoch Business School
- Resource Type
- Journal article
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