2020
DOI: 10.1177/0731121420946778
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The Impact of Economic Inequality on Entrepreneurship: Does a Society’s Stage of Development Make a Difference?

Abstract: In recent studies linking inequality to the entrepreneurial process, some scholars claim that inequality creates entrepreneurial incentives, thereby increasing entrepreneurship, while others contend that inequality deters entrepreneurship by restricting market opportunities. Building on Kuznets’s inverted- U hypothesis on the inequality–development relationship, I posit that the nature of the inequality–entrepreneurship relationship is contingent on a society’s development level. Results from mixed-effects log… Show more

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Cited by 8 publications
(4 citation statements)
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“…Unemployment, economic development, and overall fertility rate are accounted for in this analysis due to their theoretical importance for business ownership as a whole (Auguste 2021), and for gender inequality in starting a business and eventually becoming a business owner in particular. The overall unemployment rate in a society is likely to influence the likelihood of entrepreneurial entry for both men and women independently of societal-level gender status beliefs about gender differences in leadership competency and right to employment.…”
Section: Data Measurement and Methodsmentioning
confidence: 99%
“…Unemployment, economic development, and overall fertility rate are accounted for in this analysis due to their theoretical importance for business ownership as a whole (Auguste 2021), and for gender inequality in starting a business and eventually becoming a business owner in particular. The overall unemployment rate in a society is likely to influence the likelihood of entrepreneurial entry for both men and women independently of societal-level gender status beliefs about gender differences in leadership competency and right to employment.…”
Section: Data Measurement and Methodsmentioning
confidence: 99%
“…Analysis of the relationship between inequality and entrepreneurship indicates an interesting result at a different level of development. The inequality may be less harmful to entrepreneurial activities in less developed and developing economies than in advanced economies (Auguste, 2020). Scholars noted some problems in Schumpeter’s theoretical framework during the seventies.…”
Section: Entrepreneurship and Economic Growthmentioning
confidence: 99%
“…Cross-national data on entrepreneurship and inequality show that entrepreneurship rates are significantly higher in less developed countries and emerging economies (where inequality is relatively high) than advanced economies (where inequality is relatively low). It can be partly attributed to the high unemployment rates in those countries that may be an alternative to unemployment (Auguste, 2020). Another dimension of research indicates that entrepreneur policy implemented by respective states has no conclusive effects on identified indicators of local economic and entrepreneurial activity (Figueroa-Armijos & Johnson, 2016).…”
Section: Entrepreneurship and Economic Growthmentioning
confidence: 99%
“…28 It is well established in the literature -e.g Auguste (2021);Lloyd-Ellis & Bernhardt (2000) . that…”
mentioning
confidence: 98%