The controversial link between entrepreneurial activity and inequality

This study illustrates how entrepreneurship may contribute to enhancing economic growth and prosperity by reducing inequality and exclusion. Assessing relationships between new ventures and reduction of inequalities enables us to disentangle the mechanisms through which entrepreneurial processes may contribute to societal transformations. The proposed theoretical model is estimated by using fsQCA. The findings suggest that one crucial root of sustainable development through entrepreneurial attitude is strongly linked to the existence of inclusive institutions, and avoidance of extractive ones. The findings contribute to showing the importance of institutions to favour prosperity through entrepreneurship. This research can provide crucial implications and applications for both academics and practitioners such as policymakers. In sum, this paper provides a framework for understanding the connection between entrepreneurship and societal development.

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