Institutional Determinants and Entrepreneurial Action

The paper examines the effect of specific institutional factors on entrepreneurial activity. In the course of the examination, we encounter various viewpoints regarding entrepreneurship and different needs of national politics. The research objective is to determine whether institutional factors influence early-stage entrepreneurial activity. There is a broad array of opinions on appropriate set of factors that influence the entrepreneurship processes, on ways of their influence and on differentiating between the developed and less developed countries. Therefore, we examined the defined research hypothesis in the light of 24 countries (Argentina, Belgium, Brazil, Chile, Columbia, Croatia, Denmark, Finland, France, Greece, Hungary, Island, Italy, Japan, Latvia, Netherlands, Norway, Peru, Russia, Slovenia, Spain, United Kingdom, Uruguay and USA), in the period between the years 2006 and 2010 (24 countries * 5 years = 120 observations). The data was obtained from Global Entrepreneurship Monitor (GEM) database and complemented with data from other international sources such as Heritage Foundation, among others. With econometrics business methods, we determined that greater economic freedom in the institutional context of a country affects the extension of productive entrepreneurship, while the individual's