How do environmental factors shape entrepreneurial intention? A review and future research

Abstract

Entrepreneurial intention plays a critical role in the economic growth and development of countries. As a result, an increasing number of studies have examined different antecedents of entrepreneurial intention to understand how to foster entrepreneurial intention in a country. This research focuses on macro-environmental-related factors and endeavors to provide a more comprehensive understanding of the critical factors in these areas that can impact entrepreneurial intention. A total of 40 studies from high-ranked journals were systematically identified and analyzed in the field of entrepreneurship and management. This review sheds light on details of the key cultural, regional, and economic factors as well as governmental and political factors and highlights how they impact entrepreneurial intention. It also provides some suggestions for future research directions. While some systematic literature review papers have been conducted on entrepreneurial intention and its antecedents, environmental factors have only been identified broadly as key antecedents. This research systematically reviews the existing papers and unravels different aspects of these factors and explains how they impact entrepreneurial intention. In addition, it sheds light on related future research directions.