This paper studies the effects of state fragility and economic development on necessity and opportunity-based individual entrepreneurial efforts. We contribute to the literature on the contextual determinants of entrepreneurship by examining multilevel data on 956,925 individuals from 51 countries for the period of 2005–2013. We show that state fragility has a positive effect on necessity-based entrepreneurial efforts while hindering opportunity-based efforts. Our findings illustrate that the level of economic development moderates the relationship between state fragility and necessity-driven entrepreneurial efforts reducing the likelihood of the latter. We discuss the implications for theory and for proentrepreneurship policy.

institutional theory, government policy/regulation, necessity based entrepreneurship
doi.org/10.1177/1042258717736857
Entrepreneurship, Theory and Practice , Entrepreneurship and COVID-19: Insights from Research Published in Entrepreneurship Theory and Practice
Listed on Journal FT Rank. Annual impact factor of 10.750
Incae Business School

Ciravegna, L, Amorós, J., Mandakovic, V., & Stenholm, P. (2017). Necessity or Opportunity? The Effects of State Fragility and Economic Development on Entrepreneurial Efforts. In Entrepreneurship and COVID-19: Insights from Research Published in Entrepreneurship Theory and Practice. "Impact Factor of 10.750". Entrepreneurship and COVID-19: Insights from Research Published in Entrepreneurship Theory and Practice, 43(4), 725–750. doi:10.1177/1042258717736857