Institutional Context, Entrepreneurial Activity, and Social Progress

  • David Urbano
  • Sebastian Aparicio
  • David B. Audretsch
Part of the International Studies in Entrepreneurship book series (ISEN, volume 41)


The main purpose of this chapter is to examine how country’s institutional context influences the way in which entrepreneurial activity affects social progress. Following the theoretical approach of institutional economics, we test our hypotheses using pooled data of 62 countries (2012 and 2014) and simultaneous equation model estimation. The findings suggest that business regulations decrease entrepreneurial activity, while established democracies provide as government context conducive to entrepreneurship. In addition, we find that the entrepreneurial activity has a positive impact on the Social Progress Index, which is an alternative measure of economic performance. Policy and theoretical implications are discussed from these findings.


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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • David Urbano
    • 1
  • Sebastian Aparicio
    • 2
  • David B. Audretsch
    • 3
  1. 1.Department of BusinessUniversitat Autònoma de BarcelonaBellaterraSpain
  2. 2.Durham University Business SchoolDurham UniversityDurhamUK
  3. 3.Institute for Development Strategies, School of Public and Environmental AffairsIndiana UniversityBloomingtonUSA

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