The role of entrepreneurship in different economic phases

Abstract

Various studies have analysed the relationship between entrepreneurship and economic growth, including variables such as innovation, institution, etc. However, these relationships have not been studied in the different phases of economic evolution, that is, the expansionary and the recessionary phases. The aim of this paper is to analyse the relationship among entrepreneurship, institutions, innovations, social climate and economic growth through those phases, in order to discover the different effects on entrepreneurs when they set up a new business or during professional activity. To achieve this objective, a structural equation model (SEM) is proposed, estimated for each of the time periods considered using the partial least squares (PLS) technique for fifteen OECD countries. The three periods are: a) prior to the economic crisis 2004–2006; b) economic crisis 2008–2010; c) post-crisis economic recovery 2014–2016. In addition, comparative analysis of the results obtained by the models will be carried out.