Environmental conditions and entrepreneurial activity: a regional comparison in Spain

Claudia Álvarez · David Urbano · Alicia Coduras · José Ruíz‐Navarro

148 citations0/0 files storedJournal of Small Business and Enterprise Development

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Entrepreneurship Studies and Influences Firm Innovation and Growth Migration, Ethnicity, and Economy

Abstract

Purpose The main objective of this paper is to analyse the influence of environmental factors on entrepreneurship at the Spanish regional level, using institutional economics as the theoretical framework for the research. Additionally, this work aims to emphasize how environmental conditions have different effects according to the gender of entrepreneurs. Design/methodology/approach Regional panel data (19 Spanish regions and the 2006‐2009 period) from the Global Entrepreneurship Monitor (GEM), specifically from the Spanish National Expert Survey (NES) for environmental conditions and the GEM Adult Population Survey (APS) for entrepreneurial activity were analysed within a fixed effects model with panel corrected standard errors. Findings The main findings of the study indicate that both informal (cultural and social norms, perception of opportunities to start‐up and entrepreneur social image) and formal factors (intellectual property rights) influence entrepreneurship, but the informal are more determinant than the formal. Concerning the gender issues, informal and formal institutions are also determinant, but female entrepreneurship is significantly associated with the women's support to start‐up, whereas primary and higher education are associated only with male entrepreneurial activity. Research limitations/implications The results of the research should be interpreted carefully, because the availability of data constrained the analysis to a time period that is not reflective of the economic cycle; on the contrary, the data correspond to a period of recession, and thus the results cannot be generalized. Also, the study could extend the analysed period and compare the obtained results with international data, considering the global number of participant countries in the GEM Project. Originality/value The study provides a methodology to analyse the environmental factors for new firm creation at a regional level, combining GEM data and institutional economics.

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References

1990Institutions, Institutional Change and Economic Performance 1991Institutions, Institutional Change and Economic Performance 1961The achieving society.1991Institutions, Institutional Change and Economic Performance.2003The role of social and human capital among nascent entrepreneurs 2000The Regulation of Entry 1989An Estimated Model of Entrepreneurial Choice under Liquidity Constraints 2005Understanding the process of economic change

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