Determinant Factors for the Development of Entrepreneurial Activity: A Correlational Study

Entrepreneurship is characterized by the transformation of innovation, knowledge, opportunities and ideas for creating new businesses to make profits and stimulate social and economic changes. According to literature, high levels of regional entrepreneurship are essential to unleash these changes. This research proposes an integrated model of determinant factors that stimulate entrepreneurial activity and economic development. This model consists of institutional, economic and social determinants. Data were collected through 189 questionnaires to nascent entrepreneurs. Significant correlations were found between the determinants model and entrepreneurial activity. The results of this research provide useful tools for designing public policies to stimulate entrepreneurship and economic development. It also provides researchers with a basis for further studies to determine the effectiveness of the integration of elements that encourage entrepreneurial activity.