Entrepreneurship in national economies: The study of factors that influence the level of entrepreneurial activity

Abstract

The goal of the research is to explore the factors that influence the level of entrepreneurial activity. The theoretical part encompasses the study of main approaches to entrepreneurial activity measurement, factors determining performance of entrepreneurial sector and measures for the level of entrepreneurial activity in a national economy. The empirical part of the research is based on a sample of 50 countries. It includes two stages: (1) Measurement of entrepreneurial activity by means of data envelopment analysis (DEA). (2) Exploration of the relationship between the “efficiency” scores, reflecting the level of entrepreneurial activity and factors that drive performance of the entrepreneurial sector. The level of entrepreneurial activity is considered through the prism of entrepreneurial sector size and is estimated as “efficiency scores” obtained from DEA models. It was empirically demonstrated that the institutional environment and perceptions of entrepreneurship positively affect the level of entrepreneurial activity.