Knight, financial institutions, and entrepreneurship in developing economies

Nabisaalu, Joyce Komakech; Bylund, Per L.

doi:10.1017/s1744137421000308

Cited by 17 publications

(12 citation statements)

References 61 publications

(107 reference statements)

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“…Conversely, L1 instability will hardly allow for productive entrepreneurship to flourish, as a number of anecdotal examples in Africa and South America suggest (e.g. Larroulet and Couyoumdjian, 2009; Nabisaalu; and Bylund, 2021).…”

Section: Discussionmentioning

confidence: 99%

Entrepreneurship and institutional uncertainty

D’Andrea

2022

JEPP

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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.

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Section: Discussionmentioning

confidence: 99%

Entrepreneurship and institutional uncertainty

D’Andrea

2022

JEPP

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“…Moreover, the economic shock of the Covid-19, according to Cassim et al (2020) is larger than any previous ones due to the fact, that in first months of pandemic, national governments announced the intentions to allocate $10 trillion. That is why CEECs' tax system responses due to Covid-19 are crucial for entrepreneurs affected by Covid-19 government restrictions which hamper their business activities, but also for investors which may be attracted by Covid-19 tax policies (Nabisaalu & Bylund, 2021). In Covid-19 pandemic times some entrepreneurs may avoid registration of their business activities due to a high level of taxes or registration fees (Nabisaalu & Bylund, 2021).…”

Section: Literature and Hypotheses Developmentmentioning

confidence: 99%

The Impact of Informal Institutions on the Tax System Policy Responses due to Covid-19: Evidence from CEECs

Godlewska

2023

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Informal institutions matter in the context of the tax systems of Central and Eastern European countries (CEECs), especially during the Covid-19 crisis. The purpose of this paper was to investigate the impact of the informal institutions on the stability of tax system policy responses due to Covid-19. The research is based on informal institutions of CEECs such as different values and norms, customs, or traditions. The research methodology focuses on secondary statistical data from 18,785 surveys from the European Social Survey Round 9 (2018) edition 2.0 and from 211 tax system policy responses due to Covid-19 of the OECD for 11 CEECs. The findings show that informal institutions such as trust in others or trust in legal system have a positive impact on the stability of the tax system of CEECs policy responses due to Covid-19.

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“…(e.g. Nabisaalu and Bylund, 2021). Simply put, entrepreneurship in developing countries tends to suffer from lacking formal institutions (see, e.g.…”

mentioning

confidence: 99%

“…This, in part, explains the lack of economic growth and, therefore, lower levels of prosperity observed in developing countries (e.g. Nabisaalu and Bylund, 2021). Simply put, entrepreneurship in developing countries tends to suffer from lacking formal institutions (see, e.g.…”

mentioning

confidence: 99%