How do some “barriers” and “burdens” affect opportunity and necessity driven entrepreneurial activity
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Abstract
Entrepreneurship has been regarded as an important input for the economic growth. It does not only fetch employment, which entails development, but also fosters innovation and productivity. Nevertheless, Entrepreneurs face many social, economic and political barriers and burdens. The aim of this paper is to find if there is a significant effect of these barriers and burdens on opportunity and necessity driven entrepreneurial activity in Latin American and the Caribbean countries. A sample of the available data for 12 countries was selected from the Global Entrepreneurship Monitor (GEM) database and Doing Business annual report. To evaluate the hypotheses, a panel data econometric model was used. As a result, there is a stronger negative impact on opportunity-driven than on necessity-driven entrepreneurship. The paper ends with some advice on policy decisions that could foster entrepreneurial activity in the region.
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