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Economic and socio-cultural drivers of necessity and opportunity entrepreneurship depending on the business cycle phase

    Isabel Martínez-Rodriguez   Affiliation
    ; Fernando E. Callejas-Albiñana   Affiliation
    ; Ana Isabel Callejas-Albiñana   Affiliation

Abstract

This paper offers an in-depth examination of the behavior of necessity- and opportunitydriven entrepreneurship. First, it considers their relevance to total entrepreneurial activity. It then seeks to determine which socio-cultural and economic factors affect the two types of entrepreneurship, as well as their relative importance for a sample of 32 previously selected countries during a period of expansion (2001–2008) and of crisis and recovery (2009–2016). The analyzed factors include monetary and fiscal policy instruments (economic factors) and representative variables of governance and human capital (socio-cultural ones). The findings show that both necessity- and opportunity-driven entrepreneurship largely explain the behavior of total entrepreneurial activity. They moreover show that the explanatory factors of both kinds of entrepreneurship differ depending on the business cycle phase considered. These findings will be key to proposing efficient economic policy measures to promote entrepreneurial activity and, thus, economic growth in different economies around the world.

Keyword : entrepreneurship, opportunity, necessity, socio-cultural factors, economic factors, economic growth, business cycle, GEM

How to Cite
Martínez-Rodriguez, I., Callejas-Albiñana, F. E., & Callejas-Albiñana, A. I. (2020). Economic and socio-cultural drivers of necessity and opportunity entrepreneurship depending on the business cycle phase. Journal of Business Economics and Management, 21(2), 373-394. https://doi.org/10.3846/jbem.2020.11848
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Feb 27, 2020
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This work is licensed under a Creative Commons Attribution 4.0 International License.

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