A Comparative Analysis on the Relationship Between Institutional Environment and Entrepreneurship in Emerging Economies

Abstract

Institutional environment plays an important role in the quality and nature of entrepreneurial activities and the development of entrepreneurship ecosystem. The aim of this research is to evaluate institutional factors of selected emerging markets with Global Entrepreneurship and Development Index data. Findings of the study indicate that Turkey has one of the lowest scores among other emerging markets for the institutional variable of staff training and also has comparably low scores in venture capital, business strategy, and technology transfer. Results of the study show that except South Korea, all the selected economies have scored low on the institutional variable of gross domestic expenditure on research and development as a percentage of the gross domestic product. The study is expected to make valuable contributions to the literature with its novel approach of using comparative Global Entrepreneurship and Development Index scores for analyzing the institutional environment and entrepreneurship relationship in emerging economies.