Impact of high‐growth start‐ups on entrepreneurial environment based on the level of national economic development

Abstract

In this paper, we examine the relationship between the conditions of the entrepreneurial environment and high‐potential entrepreneurship according to the stage of economic development of the country. A structural equation model was designed based on data from the Global Entrepreneurship Monitor project, which contains information about 62 countries. Our results suggest that economic development and high‐potential entrepreneurship have a greater impact on the entrepreneurial ecosystem than entrepreneurial activity in general—with special effects on government programs, R&D transfer, and access to the domestic market. Notably, the level of influence of sustainable economic development and high‐potential entrepreneurship depends on the level of economic development of the country.

Business Environment and Entrepreneurial Motivations of Urban Students

“…Second, the perceptions of socio-economic conditions played a key role in college students' entrepreneurial motivations. This aligned with the views of scholars such as Liñán and Santos (2007), Gathungu andBaariu (2018), andMartínez-Fierro et al (2020), all of whom posited that entrepreneurial motivation is affected by socio-economic conditions to various extents and that favorable socio-economic conditions promote the formation of entrepreneurial motivation. The results of this study also confirmed that the development of entrepreneurial motivations among college students is affected by multifaceted factors such as the growth rate of the regional economy, entrepreneurial role models, the number of successful local entrepreneurs, and the cultural atmosphere.…”

“…Preferential measures for entrepreneurs offered by government departments in taxation, facilitation of approval processes, and optimization of entrepreneurial institutions Gnyawali and Fogged, 1994;Garcia-Cabrera et al, 2018;Nam and Hwansoo, 2019 Socio-economic conditions Level of development of the local economy, industrial structure, and urban construction; infrastructure such as transport, water supply, and electricity supply; and regional entrepreneurial culture Davidsson and Honig, 2003;Liñán and Santos, 2007;Gathungu and Baariu, 2018;Martínez-Fierro et al, 2020 Education and training Innovation and entrepreneurship education, related activities, and capacity-building training attended by entrepreneurs during their studies Turker and Selcuk, 2009;Sirbu et al, 2015;Bazan et al, 2020 Financial support Financial support obtained by entrepreneurs in sources of financing, interest-free loans, and start-up funds Kristiansen and Indarti, 2004;Welter, 2011;Yao et al, 2016 Non-financial support Assistance received by entrepreneurs in expert guidance, development opportunities, information, and resources Djankov et al, 2006;Schwartz, 2009;Gathungu and Baariu, 2018 attitudes and behaviors. Based on the above viewpoints, we hypothesized the following.…”

“…Obschonka et al (2012) argued that social culture serves as a key determinant of college students' entrepreneurial motivations and that successful role models stimulate their entrepreneurial beliefs. Martínez-Fierro et al (2020) found that economic development has a substantial impact on entrepreneurial motivation. Therefore, with regard to socio-economic conditions and entrepreneurial motivation, we hypothesized the following.…”

Importance of start-up law for our legal systems

“…Studies have been published that show a clear relationship between start-up activity and national economic development and competitiveness. 68 There is evidence that the relationship between entrepreneurship and economic development largely depends on the national economic environment, which is shaped by economic, institutional and socio-cultural factors, 69 combined with regulatory and tax frameworks. Start-ups with their innovative and entrepreneurial activity represent the key element for economic growth in developed countries 70 and developing countries.…”

The Bright Side of Social Media: Social Media Platforms Adoption and Start-Up Sustainability

“…As a result, start-ups get created worldwide in the millions, because they are considered the source of rapid product development. Start-ups have significant contributions to job creation and growth at national, international, and industrial levels (Chodokufa, 2009 ; Andzelic et al, 2011 ); thus, they have significantly contributed to economic development (Martínez-Fierro et al, 2020 ). Start-ups have led to numerous innovative breakthroughs resulting in entirely new businesses (Hathaway, 2016 ).…”