Governance and entrepreneurship: a cross-national study of business start-up intentions

The research explores how governance quality affects business start-up intentions across 43 countries.Drawing on institutional theory, it examines how governance dimensions, compared to national income and geographic region, influence entrepreneurial intentions.A hierarchical regression analysis was conducted on a sample of 43 countries using secondary data from the Global Entrepreneurship Monitor (GEM) and the World Bank's Worldwide Governance Indicators (WGI).The regression analysis revealed that national income and regions significantly influence start-ups (R²=0.697),and governance dimensions contribute significantly to explaining start-ups (ΔR²=0.151).Among six governance dimensions (regulatory quality, government effectiveness, political stability, control of corruption, rule of law, and voice and accountability) tested, government effectiveness and regulatory quality were the most potent predictors of startups.These results raise questions about traditional assumptions about income-driven entrepreneurship and highlight specific institutional mechanisms that policymakers may leverage to encourage entrepreneurship.The results contribute to a more nuanced understanding of governance and entrepreneurial dynamics in a variety of economic contexts.