How age and environmental factors influence entrepreneurship and growth: a panel-data analysis of an entrepreneurial intention framework

Abstract: The economic literature has established many determinants of entrepreneurship. However, most research lacks the presence of a suitable theoretical framework. This study aims to fill this gap in the literature by utilizing an intention model derived from the psychology research. According to this model, the environment affects entrepreneurship through the mediating factors of perceptions and intentions. Country-level data from the Global Entrepreneurship Monitor are employed to successfully test the model and reveal the moderating role of age. Particularly, youth entrepreneurship is shown superior to general entrepreneurship in terms of growth impact but at the same time intentions are found to more easily translate to entrepreneurial actions among older individuals. Meanwhile, perceived opportunities and capabilities are displayed to be the main predictors of entrepreneurial intentions in developing and developed countries respectively. Lastly, various environmental factors, most important among them the entrepreneurial role models and their media representation, are shown to significantly improve entrepreneurial perceptions.