Entrepreneurship channels and sustainable development: directions for the Asian economy
Abstract
Entrepreneurship has been identified as a catalyst for creating opportunities and enhancing productivity. The Asian economy is one of the fastest growing economies and entrepreneurially inclined continents of the world, owing to the phenomenal strides of China’s economic activities. Despite these, the region is still characterized as developing in terms equality, real income growth and welfare distributions. Thus, one wonders the extent the entrepreneurial strides impact on the continent; and, to what extent are the socio-economic structures of the Asian economy relevant for achieving sustainable entrepreneurship development. Thus, by employing the Generalized Method of Moments (GMM), this study assesses the extent to which the current wave of entrepreneurship outcomes can actualize the Global Development Goals slated for 2030. The findings show that improvement in life expectancy and decrease in inequality influenced entrepreneurial outcomes via the basic requirement channel; while higher education which is an efficiency enhancing channel stimulates income than innovations; thus, indicating the need for continuous investments for nascent training; while investments in research and development is an institutional channel that promotes entrepreneurial outcomes. Thus, if the global goals will be actualized, policy makers should strengthen infrastructures and create enabling environments that will improve entrepreneurial outcomes within Asian economies.
Keyword : entrepreneurship channels, sustainability, efficiency, institutions, generalized moments of method, innovation, economic growth
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Ahlstrom, D. (2010). Innovation and growth: How business contributes to society. Academy of Management Perspectives, 24(3), 10–23. https://doi.org/10.5465/amp.24.3.11
Akinwale, Y. O., Dada, A. D., Oluwadare, A. J., Jesuleye, O. A., & Siyanbola, W. O. (2012). Understanding the nexus of R&D, innovation and economic growth in Nigeria. International Business Research, 5(11), 187. https://doi.org/10.5539/ibr.v5n11p187
Alvarez, S. A., Barney, J. B., & Newman, A. M. B. (2015). The poverty problem and the industrialization solution. Asia Pacific Journal of Management, 32, 23–37. https://doi.org/10.1007/s10490-014-9397-5
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297. https://doi.org/10.2307/2297968
Armstrong, R. (2002). Sustainable community regeneration: Issues and opportunities. A Background discussion paper prepared for the state sustainability strategy.
Audretsch, D. B., Grilo, I., & Thurik, A. R. (2007). Explaining entrepreneurship and the role of policy: A framework. In D. B. Audretsch, I. Grilo, & A. R. Thurik (Eds). The handbook of research on entrepreneurship policy (pp. 1–17). Edward Elgar Publishing. https://doi.org/10.4337/9781847206794.00005
Autio, E., & Fu, K. (2015). Economic and political institutions and entry into formal and informal entrepreneurship. Asia Pacific Journal of Management, 32, 67–94. https://doi.org/10.1007/s10490-014-9381-0
Bandyopadhyay, S., Sandler, T., & Younas, J. (2014). Foreign direct investment, aid, and terrorism. Oxford Economic Papers, 66(1), 25–50. https://doi.org/10.1093/oep/gpt026
Bosma, N., & Kelley, D. (2019). Global entrepreneurship monitor 2018/2019 global report. Global Entrepreneurship Research Association (GERA). https://www.c4e.org.cy/reports/2019/Global_GEM_Report_2018_2019.pdf
Baumol, W. J. (1996). Entrepreneurship: productive, unproductive, and destructive. Journal of Business Venturing, 11(1), 3–22. https://doi.org/10.1016/0883-9026(94)00014-X
Baumol, W. J., Schilling, M. A., & Wolff, E. N. (2009). The superstar inventors and entrepreneurs: How were they educated? Journal of Economics & Management Strategy, 18(3), 711–728. https://doi.org/10.1111/j.1530-9134.2009.00227.x
Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143. https://doi.org/10.1016/S0304-4076(98)00009-8
Blundell, R., & Bond, S. (2000). GMM estimation with persistent panel data: An application to production functions. Econometric Reviews, 19(3), 321–340. https://doi.org/10.1080/07474930008800475
Bruton, G. D., Ahlstrom, D., & Si, S. (2015). Entrepreneurship, poverty, and Asia: Moving beyond subsistence entrepreneurship. Asia Pacific Journal of Management, 32(1), 1–22. https://doi.org/10.1007/s10490-014-9404-x
Constantinescu, A., & Platon, V. (2014). Sustainable development paradigm-synopsis. Annals of Faculty of Economics, 1(1), 116–124.
Daly, H. (1990). Toward some operational principles of sustainable development. Journal of Ecological Economics, 2(1), 1–6. https://doi.org/10.1016/0921-8009(90)90010-R
Dean, T. J., & McMullen, J. S. (2007). Toward a theory of sustainable entrepreneurship: Reducing environmental degradation through entrepreneurial action. Journal of Business Venturing, 22(1), 50–76. https://doi.org/10.1016/j.jbusvent.2005.09.003
Dilli, S., Elert, N., & Herrmann, A. M. (2018). Varieties of entrepreneurship: Exploring the institutional foundations of different entrepreneurship types through “Varieties-of-Capitalism” arguments. Small Business Economics, 51(2), 293–320. https://doi.org/10.1007/s11187-018-0002-z
Efobi, U., Tanankem, B., & Asongu, S. (2018). Female economic participation with information and communication technology advancement: Evidence from Sub-Saharan Africa. South African Journal of Economics, 86(2), 231–246. https://doi.org/10.1111/saje.12194
Emas, R. (2015). The concept of sustainable development: Definition and defining principles. Brief for GSDR, 2015. United Nations.
Epifanova, T., Romanenko, N., Mosienko, T., Skvortsova, T., & Kupchinskiy, A. (2015). Modernization of institutional environment of entrepreneurship in Russia for development of innovation initiative in small business structures. European Research Studies Journal, 18(3), 137–148. https://doi.org/10.35808/ersj/461
Furuoka, F. (2014). Are unemployment rates stationary in Asia-Pacific countries? New findings from Fourier ADF test. Economic Research-Ekonomska istraživanja, 27(1), 34–45. https://doi.org/10.1080/1331677X.2014.947105
Gause, G. F. (2000). Saudi Arabia over a barrel. Foreign Affairs, 79(3), 80–94. https://doi.org/10.2307/20049731
George, G., Rao-Nicholson, R., Corbishley, C., & Bansal, R. (2015). Institutional entrepreneurship, governance, and poverty: Insights from emergency medical response services in India. Asia Pacific Journal of Management, 32, 39–65. https://doi.org/10.1007/s10490-014-9377-9
Hadri, K. (2000). Testing for stationarity in heterogeneous panel data. The Econometrics Journal, 3(2), 148–161. https://doi.org/10.1111/1368-423X.00043
Hyuk, K. H., & Park, W. (2019). Impact of entrepreneurial business start-up motivation, entrepreneurial spirit, and entrepreneurial competence characteristics on start-up companies’ sustainability: Focusing on the mediating effect of the start-up companies’ business performance. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 14(3), 59–71. https://www.koreascience.or.kr/article/JAKO201921956454434.page
IHS Global Inc. (2015). E-views (version 9.0). [Computer software]. IHS Global Inc. 4521 Campus Drive, #336 Irvine, CA 92612.
International Monetary Fund. (2018). International financial statistic (IFS). https://www.imf.org/en/Data
Im, J., & Sun, S. L. (2015). Profits and outreach to the poor: The institutional logics of microfinance institutions. Asia Pacific Journal of Management, 32, 95–117. https://doi.org/10.1007/s10490-014-9398-4
International Country Risk Guide Dataset. (2018). https://dataverse.harvard.edu/dataset.xhtml?persistentId=hdl:1902.1/21446
Jessop, B. (2019). Entrepreneurial city. In A. M. Orum, The Wiley Blackwell Encyclopedia of urban and regional studies (pp. 1–10). Wiley. https://doi.org/10.1002/9781118568446.eurs0090
Kargwell, S. A. (2012). A comparative study on gender and entrepreneurship development: Still a male’s world within UAE cultural context. International Journal of Business and Social Science, 3(6), 44–55. http://www.ijbssnet.com/journals/Vol_3_No_6_Special_Issue_March_2012/7.pdf
Kelley, D., Brush, C. G., Greene, P. G., & Litovsky, Y. (2011). Global entrepreneurship monitor. 2010 report: Women entrepreneurs worldwide. Global Entrepreneurship Research Association (GERA). London. https://www.microbiz.org/wp-content/uploads/2012/02/2010_WomenEntrepreneursWorldwide-GEM_AnnualReport.pdf
Kelley, D., Singer, S., & Herrington, M. (2016). 2015/16 Global Report. Global Entrepreneurship Monitor (GEM). http://www.sela.org/media/3212228/3-gem-2015-2016-global-report.pdf
Kirzner, I. M. (1973). Competition and entrepreneurship. University of Chicago Press. https://press.uchicago.edu/ucp/books/book/chicago/C/bo27304815.html
Klein, B., Lerner, A. V., Murphy, K. M., & Plache, L. L. (2005). Competition in two-sided markets: The antitrust economics of payment card interchange fees. Antitrust LJ, 73, 571.
Klein, P. G., Mahoney, J. T., McGahan, A. M., & Pitelis, C. N. (2010). Toward a theory of public entrepreneurship. European Management Review, 7(1), 1–15.
Kohli, A. (2004). State-directed development: Political power and industrialization in the global periphery. Cambridge University Press. https://doi.org/10.1017/CBO9780511754371
Lee, W. S., & Kim, B. Y. (2019). The effects of career orientations on entrepreneurial satisfaction and business sustainability. Journal of Asian Finance, Economics and Business, 6(4), 235–248. https://doi.org/10.13106/jafeb.2019.vol6.no4.235
Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties. Journal of econometrics, 108(1), 1–24. https://doi.org/10.1016/S0304-4076(01)00098-7
Lucas, D. S., & Fuller, C. S. (2017). Entrepreneurship: Productive, unproductive, and destructive – Relative to what? Journal of Business Venturing Insights, 7, 45–49. https://doi.org/10.1016/j.jbvi.2017.03.001
Maddala, G. S., & Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61(S1), 631–652. https://doi.org/10.1111/1468-0084.0610s1631
Mathew, V. (2010). Women entrepreneurship in Middle East: Understanding barriers and use of ICT for entrepreneurship development. International Entrepreneurship and Management Journal, 6(2), 163–181. https://doi.org/10.1007/s11365-010-0144-1
McCloskey, D. N. (2010). Bourgeois dignity: Why economics can’t explain the modern world. University of Chicago Press. https://doi.org/10.7208/chicago/9780226556666.001.0001
McKinsey & Company. (2019). China and the world: Inside the dynamics of a changing relationship (July 1, 2019 | Report). McKinsey Global Institute. https://www.mckinsey.com/featured-insights/china/china-and-the-world-inside-the-dynamics-of-a-changing-relationship?cid=other-eml-alt-mgi-mck&hlkid=cffedf3bb7f74466ba5fdb115ea8bb26&hctky=10301177&hdpid=f81ac65a-dd0b-4e9b-b2e04b89c591933a
McKinsey and Company. (2019). Why the Future is Asian. https://www.mckinsey.com/featured-insights/asia-pacific/why-the-future-is-asian?cid=other-eml-alt-mip-mck&hlkid=4a4d27abada842d58eb9e46a4c15cd29&hctky=10301177&hdpid=eb90f7fc-46f4-4ea6-ba6f-a3948a403621
Ostrom, E. (1990). Governing the commons: The evolution of institutional forms. Cambridge University Press.
Ostrom, E. (2005). Unlocking public entrepreneurship and public economies. Helsinki: EGD.
Prabhugaonkar, Y. B., Minh, D. X., Thirumaran, K., Sim, K. S., Pruhtpahon, S., & Raghav, M. (2020). Asian entrepreneurship in tourism and hospitality: Financial support, business sustainability. In A. Masouras, G. Maris, & A. Kavoura (Eds.), Entrepreneurial development and innovation in family businesses and SMEs (pp. 1–21). IGI Global. https://doi.org/10.4018/978-1-7998-3648-3.ch001
Proctor, B. D., Semega, J. L., & Kollar, M. A. (2016). Income and poverty in the United States: 2015. Washington, DC: United States Census Bureau.
Rekarti, E., Bahari, Z., Zahari, N. M., Doktoralina, C. M., & Ilias, N. A. (2019). The sustainability of Muslim women entrepreneurs: A case study in Malaysia. International Journal of Financial Research, 10(5), 430–439. https://doi.org/10.5430/ijfr.v10n5p430
Ren, S., & Jackson, S. E. (2020). HRM institutional entrepreneurship for sustainable business organizations. Human Resource Management Review, 30(3), 100691. https://doi.org/10.1016/j.hrmr.2019.100691
Rao, B. C. (2013). How disruptive is frugal? Technology in Society, 35(1), 65–73. https://doi.org/10.1016/j.techsoc.2013.03.003
Rodgers, C. (2010). Sustainable entrepreneurship in SMEs: A case study analysis. Corporate Social Responsibility and Environmental Management, 17(3), 125–132. https://doi.org/10.1002/csr.223
Sengupta, S., & Sahay, A. (2017). Social entrepreneurship research in Asia-Pacific: Perspectives and opportunities. Social Enterprise Journal, 13(1), 17–37. https://doi.org/10.1108/SEJ-11-2016-0050
Si, S., Yu, X., Wu, A., Chen, S., Chen, S., & Su, Y. (2015). Entrepreneurship and poverty reduction: A case study of Yiwu, China. Asia Pacific Journal of Management, 32(1), 119–143. https://doi.org/10.1007/s10490-014-9395-7
Sobel, R. S. (2008). Testing Baumol: Institutional quality and the productivity of entrepreneurship. Journal of Business Venturing, 23(6), 641–655. https://doi.org/10.1016/j.jbusvent.2008.01.004
Solt, F. (2019). The Standardized World Income Inequality Database, Versions 8-9. Harvard Dataverse. https://doi.org/10.7910/DVN/LM4OWF
Spence, M. (2011). The next convergence: The future of economic growth in a multispeed world. Farrar, Straus and Giroux.
Tiwari, R., & Bergmann, S. (2018). What pathways lead to frugal innovation? Some insights on modes & routines of frugal, technical inventions based on an analysis of patent data in German auto components industry (Working Paper No. 105).
World Commission on Environment and Development. (1987). Our common future. Oxford University Press.
Wiseman, T., & Young, A. T. (2013). Economic freedom, entrepreneurship, & income levels: Some US state-level empirics. American Journal of Entrepreneurship, 6(1). https://doi.org/10.2139/ssrn.1817846
Wooldridge, J. M. (2016). Introductory econometrics: A modern approach. Nelson Education.
World Bank. (2018). World Development Indicators (WDI). http://datatopics.worldbank.org/world-development-indicators/