Do institutional dimensions matter at different stages of the entrepreneurial process? A multi-country study

Entrepreneurs should navigate through different stages from the conception of an idea until the business is operational. According to these stages, we expected that the context has a different impact on an individual’s decisions. This paper analyses the role of institutional dimensions (regulative, normative, and cultural-cognitive) in the entrepreneurial process (potential, nascent, and new entrepreneurship), using data from the Global Entrepreneurship Monitor and Heritage Foundation, with a sample of 99 countries for the period 2001–2017. Through panel data, the main findings show that (a) regulations regarding new business creation have a stronger influence on new entrepreneurship, (b) social norms have more influence on potential entrepreneurs and individual perceptions regarding their self-capacity and experience to start a new business, and (c) the cultural-cognitive dimension has a stronger influence on nascent entrepreneurship. Policymakers could consider these results to promote and generate target group policies that effectively encourage entrepreneurial activity, which is also distinguished by the level of development among countries.