Vol. 13 No. 4 (2025)
December 2025

Articles

Exploring the macro conditions for national entrepreneurship: A panel data-based analysis in developing countries

Published 2025-12-28

  • Kieu Trang Tran
    • ,
  • Van Kiem Pham
    • ,
  • Minh Huan Luong
    • ,
  • Thu Trang Pham
    • ,
  • Thanh Tu Phan

Kieu Trang Tran
Thuongmai University

Van Kiem Pham
Thuongmai University

Minh Huan Luong
Vietnam Chamber of Commerce and Industry – VCCI

Thu Trang Pham
Thuongmai University

Thanh Tu Phan
Thuongmai University

Abstract

Objective: The article aims to analyse the impacts of macro factors on national entrepreneurship, providing insights for policymakers to promote entrepreneurial activities in developing countries.

Research Design & Methods: We employed the panel data analysis method and identified the robust fixed-effects model as the most appropriate for our research sample, which we obtained from the open databases of Global Entrepreneurship Monitor (GEM) and the World Bank. Given the unbalanced panel structure, the dataset comprised 37 developing countries, with 173 year-observations over the period 2003 to 2019.

Findings: Our findings indicate that economic growth, consumer price index (CPI), government expenditure on education, and Research and Development (R&D) investment positively impact national entrepreneurship of developing countries, whereas unemployment exhibits a negative impact. However, other macro factors such as Gross Domestic Product (GDP) per capita, Foreign Direct Investment (FDI) inflows, import, export, gross national expenditure, labour force quality and entrepreneurial institutions do not show a significant impact on national entrepreneurship of developing countries.

Implications & Recommendations: Governments of developing countries should prioritise national entrepreneurship by investing in education, R&D, and controlling inflation at an appropriate level. It is also crucial for these countries to enhance economic growth and address unemployment through entrepreneurship programs and labour market reforms.

Contribution & Value Added: This study contributes to the literature by enriching the resource-based view (RBV) and institutional theory on national entrepreneurship and its macro conditions, which governments in developing countries can influence to promote entrepreneurial activities at the macro level. Methodologically, our empirical study strengthens the field by employing panel data analysis on a sample of developing countries. The findings provide policymakers with a clearer perspective for planning strategies and policies to enhance positive factors and mitigate negative ones, fostering an environment conducive to entrepreneurship and sustainable economic development in developing countries.

Keywords

macro conditions, entrepreneurship determinants, national entrepreneurship, aggregate entrepreneurship level, developing country

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Author Biography

Kieu Trang Tran

Associate Professor at the Institute of Business Administration, Thuongmai University (Vietnam). Her research interests focus on entrepreneurship, small and medium-sized enterprises (SMEs), business incubators, and human resource management.

Van Kiem Pham

Lecturer at the Faculty of Economics and International Business, Thuongmai University (Vietnam). His research interests focus on logistics and supply chain management, international commerce and business administration.

Minh Huan Luong

Director at the Enterprise Development Institute, Vietnam Chamber of Commerce and Industry – VCCI (Vietnam). His research interests focus on entrepreneurship, small and medium-sized enterprises (SMEs), management and enterprise development, and economic development.

Thu Trang Pham

Lecturer at the Faculty of Economics and International Business, Thuongmai University (Vietnam). Her research interests focus on logistics and supply chain management, international commerce and business administration.

Thanh Tu Phan

Researcher at the Centre of Science and Technology Research and Development (CSTRAD), Thuongmai University (Vietnam). His research interests focus on economic and management science, specifically on strategic management, foreign direct investment, ownership structure, entrepreneurship and sustainable development. He is also an expert in quantitative methodology by proficiently using STATA and SPSS software, specifically in OLS regression, Probit & Logit, time series, panel data, survival analysis, and SEM (structural equation modelling).

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