Entrepreneurship and institutional uncertainty

Abstract

PurposeThe study aims to demonstrate how different arrangements and characteristics of institutions can generate or mitigate uncertainty thereby facilitating or hampering the possibilities of entrepreneurial action.Design/methodology/approachThis is a conceptual paper that advances the theoretical understanding of the relationship between entrepreneurial uncertainty and the different institutional levels, their characteristics and their interplay.FindingsEntrepreneurial uncertainty also comes from the institutional environment and this has direct impact on the propensity to take action. The characteristics of the different institutional levels, in specific, their quality, stability, alignment and the burden imposed by L2 impact in the emergence of entrepreneurial uncertainty.Research limitations/implicationsThis is a conceptual paper that makes a number of theoretical suggestions which need to be further analyzed by empirical work.Practical implicationsThe findings suggest that different institutional levels need to be dealt with differently by research studies and institutional agents, including policy makers. Among others, the findings also suggest that stability is key to entrepreneurship and that the benefits of high quality regulation can be undermined by its excessive burden, reducing entrepreneurial action and harming development.Social implicationsInstitutional actors should provide stability and allow for the improvement of the environment overall. Specifically, policy makers should aim at good quality regulation that is valid across the board, that provides stability and gives room for improvement of the institutions. Policy makers should refrain from trying to foster specific industries; they should instead provide a leveled playing field without trying to direct the entrepreneurial efforts towards an industry or geographic region and without being overly demeaning.Originality/valueThis research breaks new ground. It unites ideas from entrepreneurship and institutions suggesting a novel, much more nuanced approach to their interplay. The results can be used by scholars in the fields of entrepreneurship, institutions and economic development. They also have the potential to help to educate policy makers in their quest to improve the context for entrepreneurs.

Institutional support and self-efficacy as catalysts for new venture performance: a study of iGen entrepreneurs

“…The institution's ability to meet various needs is a foundation for iGen entrepreneurs who need more business assistance and guidance in developed and developing countries (D'Andrea, 2022; Mello et al. , 2022).…”

“…Introducing national-level policies will help change the business environment (Bozhikin et al. , 2019; D'Andrea, 2022; Saberi and Hamdan, 2019).…”

“…Entrepreneurship development and support in Malaysia include infrastructure and facilities support, tax and regulation and provision of business premises. Appropriate infrastructure must be developed to create an enabling environment and support entrepreneurs' growth (Beebeejaun, 2022; D'Andrea, 2022).…”

“…After the post-pandemic, many governments across countries have focused on developing a comprehensive and adaptive entrepreneurial ecosystem to produce highly competent and potential entrepreneurs (Ratten, 2021). Introducing national-level policies will help change the business environment (Bozhikin et al, 2019;D'Andrea, 2022;Saberi and Hamdan, 2019).…”

“…Mimetic pressure is a business imitating another successful business (Zaman et al, 2021). The institution's ability to meet various needs is a foundation for iGen entrepreneurs who need more business assistance and guidance in developed and developing countries (D'Andrea, 2022;Mello et al, 2022). Thus, institutions need to see what factors or programs iGen entrepreneurs need.…”