Shahin Behdarvand; Ali Nassiri Aghdam; Mohammad Ghasemi Sheshdeh
Abstract
This paper aims to empirically assess Schumpeter's view that access to credit is vital for entrepreneurial activities. Credit allocation refers to the allocation of bank credits by the monetary authorities to non-financial economic activities. To measure the scope and penetration of entrepreneurship, ...
Read More
This paper aims to empirically assess Schumpeter's view that access to credit is vital for entrepreneurial activities. Credit allocation refers to the allocation of bank credits by the monetary authorities to non-financial economic activities. To measure the scope and penetration of entrepreneurship, two common indicators are used: The New Business Entry Density (ED) of the World Bank (WB) and Total Early-stage Entrepreneurial Activity (TEA) of the Global Entrepreneurship Monitor (GEM). Our sample for the first case includes 66 countries over the period 2006 to 2016, and for the second case, 54 countries during the period 2001 to 2016. The results rejects the hypothesis of the impacts of credit allocation on entrepreneurship in the case of former indicators, but do not reject it in the case of the latter indicators. Furthermore, the sensitivity of the results to the choice of entrepreneurship measure indicates that further inquiries as well as alternative indicators are required to address the Schumpeterian hypothesis.
Zeynab Aeeni; Mahmoud Motevaseli; Kamal Sakhdari; Ali Mobini Dehkordi
Abstract
Explaining change has always been one of the greatest challenges in social sciences. With a particular focus on economic change, Schumpeter introduced novelty as the key to fundamental changes and subsequent economic development. Recognizing the corresponding epistemological foundations of a novel phenomenon ...
Read More
Explaining change has always been one of the greatest challenges in social sciences. With a particular focus on economic change, Schumpeter introduced novelty as the key to fundamental changes and subsequent economic development. Recognizing the corresponding epistemological foundations of a novel phenomenon is the starting point for understanding itself, its process, conditions, and prerequisites. Hence, in this paper, first we discuss the assumptions governing novelty and novel phenomena. Then, we compare the three major approaches used to explain entrepreneurial phenomena in the literature, namely neoclassic, neo-Austrian, and radical subjectivism, and we explain the appropriate novelty-based epistemological foundation of entrepreneurship. To better understand radical subjectivism, we discuss its five fundamental assumptions, namely “imaginative choice,” “plans based on past experiences and future expectations”, “heterogeneity and in equilibrium”, “the metaphor of the world as a kaleidoscope” and “the creation of order”. finally, the implications of these assumptions are set forth for future research on economics and entrepreneurship.
Saeid Eisa Zade; Jahan Bakhsh Mehranfar; Mahdi Ferdosi
Volume 12, Issue 47 , January 2013, , Pages 153-174
Abstract
In this paper, we try to explain cross-country differences in the level of entrepreneurship using self-employment and innovation as proxy variables. For this purpose, we use a comparative approach to explore empirically the ways in which institutions have influenced self-employment and innovation. In ...
Read More
In this paper, we try to explain cross-country differences in the level of entrepreneurship using self-employment and innovation as proxy variables. For this purpose, we use a comparative approach to explore empirically the ways in which institutions have influenced self-employment and innovation. In this paper, we make the assumption that national patent grants represent innovation and that national self-employment rates represent job replacement. Then, we investigate the relationship between the institutional setting, in terms of economic freedom measures, and entrepreneurship which is measured by proxy variables of self-employment and innovation in a panel data setting covering selected countries for the time-period of 1990-2009. The empirical findings show that indices of corruption perception, business freedom and trade freedom are negatively correlated with self-employment rate. On the other hand, investment freedom and freedom from government intervention have positive effect on self-employment. Interestingly, we found that institutional factors that determine self-employment and innovation may act in opposite directions: what encourages self-employment might discourage innovation and vice-versa.
Saeid Eisa Zade; Jahan Bakhsh Mehranfar
Volume 12, Issue 44 , April 2012, , Pages 199-212
Abstract
This paper investigates the relationship between the institutional setting, in terms of economic freedom, and entrepreneurship, as measured by self-employment in a panel data setting covering selected countries and the time-period 1990-2009. The measure of economic freedom includes five indices; size ...
Read More
This paper investigates the relationship between the institutional setting, in terms of economic freedom, and entrepreneurship, as measured by self-employment in a panel data setting covering selected countries and the time-period 1990-2009. The measure of economic freedom includes five indices; size of government, the legal structure and security of property rights, access to sound money, the freedom of trade internationally, and the regulation of credit, labor and business. The empirical findings show that a small public sector, better legal structure and security of property rights tend to increase in entrepreneurship. Also, we find that the freedom of trade internationally and less regulation of credit, labor and business is negatively correlated to self-employment rate.
