Entrepreneurship is still a social term that scholars have difficulty defining, and a lack of consistency in theory in turn leaves researchers without an accurate way to measure entrepreneurial activity. A working definition and theory of the entrepreneur is provided as a way to synthesize the various multi-disciplinary approaches taken towards entrepreneurship in past literature, with emphasis on welfare and judgmental decision-making under uncertainty. Past studies find significant relationships between economic growth and the level of entrepreneurial activity in a country. Little is known, however, on which elements of a society contribute to entrepreneurship and which do not. This study examines the effects that social capital, culture, and institution measures have on the level of self-employment in a country, with specific focus on developing countries. Results of this cross-country regression analysis form a model of entrepreneurship with significant explanatory power from property rights, productivity, and trust.

Included in

Economics Commons