Влияние институциональной среды на предпринимательские устремления к росту: выводы из данных GEM

Exploring the relationship between country characteristics and different aspects of entre- preneurship is one of the relevant topics of contemporary scientific research. A significant part of this research considers the relationship between the number of people involved in the entrepre- neurial process, the qualitative characteristics of entrepreneurship and economic growth. Eco- nomic growth of a country (in terms of GDP, number of jobs, and, hence, productivity) largely depends on entrepreneurship, and the success of entrepreneurship depends on two factors: the availability of people who are ready to start their career as an entrepreneur and external factors that influence this decision and determine the probability of success of entrepreneurs. These ex- ternal economic factors can be described as factors of production, but it is not enough to improve just these factors. A good quality of infrastructure is also needed to support economic growth and entrepreneurship.
Nevertheless, not all SMEs make significant impact on national economy. While some start-ups have high level of labor productivity and create rising number of jobs, majority of SMEs are not innovative, do not create a lot of jobs, and, subsequently, do not generate significant amount of value added for economy. That is why policymakers’ focus should be on these high growth start-ups, not on the mass stimulation of small entrepreneurship.
In the contemporary entrepreneurial studies, it is common to separate different entrepre- neurial aspirations. According to GEM methodology, there are four possible aspirations: growth (in terms of the number of employees), innovation (in terms of developing new products, that are not present on the market at the moment, competitive landscape, use of new technologies, and activities in the high tech industries), market expansion (increasing market share and targeted mar- kets) and international activity (in terms of share of revenue coming from abroad). High growth entrepreneurs are characterized by the significant importance for the economy, because they drive economic growth much faster than average entrepreneurs. At the same time, aspiration towards innovation, market expansion, and internationalization all lead to company’s growth, which is represented by growth in number of employees. Because of this, understanding the factors that determine the structure of aspirations leads to understanding the factors that affect the complexity and the level of growth that is generated by entrepreneurial activity.
The purpose of the paper is to analyze institutional factors that influence the share of high growth entrepreneurs. Many works study the influence of institutional factors on entrepreneurial activity and on various aspects of the aspirations of entrepreneurs. At the same time, insufficient attention to individual regions and the difference in institutional factors among regions allow us
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The impact of the institutional environment on entrepreneurial aspirations for growth
to find a gap in research and expand our understanding of these processes. In addition, the limited sample does not allow authors to compare effects among different countries, which additionally opens up opportunities for research.
Additional focus of this study: compare factors that shape entrepreneurial aspirations among regions. Namely, peculiarities of Eastern Europe will be examined and compared to that of Western Europe and world as a whole. Eastern Europe is the region of focus because it has deferred growth potential which is due to the fact that the region entered the free-market economic system later than the rest of Europe. In addition, Eastern Europe exemplifies the region where conditions for a free-market economy are lacking. This paper also contributes to the research of entrepreneur- ship in the regions where institutional incentives and institutional factors are underdeveloped, which leads to the weak institutional environment.
What is more, in Eastern Europe entrepreneurship for a long time was perceived criminal- istic activity, while making profit was considered ideologically wrong. Because of this, high level of bureaucracy, weakness of formal institution enforcement, high importance of informal norms, and low level of property rights created the environment that is drastically differ from that of Western Europe. This environment combined with hidden economic potential creates promising basis for the study.
Object of the study is the motivation of entrepreneurs with growth aspirations.
The objectives of the study are:
Comparing the levels of entrepreneurial activity between the countries;
Analysis of the literature related to entrepreneurs with growth aspirations;
Analysis of the literature related to the impact of entrepreneurship on the economy and
institutional factors influencing this impact;
Identification of institutional factors that affect the number of entrepreneurs with growth
aspirations;
Constructing the regression models;
Consideration of the influence of factors and analysis of the obtained results;
Determining the differences in the factors that influence high growth entrepreneurs in dif-
ferent economies;
The secondary data will be collected for the analysis and regression models will be build. Quantitative method will be used because this is the only method that is appropriate for the study’s objectives mentioned above. Data sources: GEM consortium, World Bank, Transparency Interna- tional, and Heritage Index of Economic Freedom.
Research questions are the following:
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The impact of the institutional environment on entrepreneurial aspirations for growth
What institutional factors influence the share of entrepreneurs with growth aspirations?
Is there a difference in the influence of institutional factors in different economies (world,
Europe, Eastern Europe)?
The paper consists of three main parts. The first chapter presents theoretical framework and describes the influence of entrepreneurship on the economy and the influence of institutional factors on the entrepreneurs. The second chapter presents the research methodology. Hypotheses are stated in the second chapter as well. The third chapter shows empirical part, namely regression models used and final results: rejected and approved hypotheses. This chapter discusses the results of the analysis and practical contributions for officials and policymakers.
The work contributes to the understanding of the factors that could increase efficiency of economic growth: by focusing on the factors that have the greatest impact on the share of entre- preneurs with growth aspirations policymakers could stimulate GDP growth. The study of factors of influence will be conducted using regression analysis and results from three economies will be presented: world, Europe, and Eastern Europe for the last 10 years. The comparison of different economies will provide relevant information about the factors that influence growth aspirations and, hence, how to focus these factors.