The effects of entrepreneurial ecosystems and macroeconomic indicators on high job creation expectations and the business services sector

Abstract

PurposeThis study aims to examine the influence of the entrepreneurial ecosystem (entrepreneurial behavior and attitudes - entrepreneurial framework conditions) and macroeconomic indicators, specifically foreign direct investment and gross domestic product, on high job creation expectations and the business services sector.Design/methodology/approachData from 10 European Union countries between 2004 and 2021 were analyzed longitudinally with panel data analysis. Research data were obtained from Global Entrepreneurship Monitor and the World Bank.FindingsThe findings reveal that entrepreneurial intentions, government support and foreign direct investment have a positive influence on high job creation expectations. In contrast, fear of failure, taxes and bureaucracy have negative effects. In the business services sector, perceived opportunities and government support foster entrepreneurship, whereas entrepreneurial intentions, taxes and bureaucracy hinder it. Additionally, foreign direct investment has a positive impact on high job creation expectations and the business services sector. In contrast, gross domestic product has a positive effect on high job creation expectations and a negative impact on the business service sector.Originality/valueThis study integrates socio-cognitive theory and institutional theory to examine the effects of individual-level cognitive factors and macro-level regulative institutions on individuals' high job creation expectations and the business service sector. It also deepens theoretical explanations on the multi-level nature of the entrepreneurial ecosystem by emphasizing the structural effects of macroeconomic indicators such as foreign direct investment and gross domestic product on high job creation expectations and the business service sector.