Do institutional dimensions matter at different stages of the entrepreneurial process? A multi-country study

Entrepreneurs should navigate through different stages from the conception of an idea until the business is operational. According to these stages, we expected that the context has a different impact on an individual's decisions. This paper analyses the role of institutional dimensions (regulative, normative, and cultural-cognitive) in the entrepreneurial process (potential, nascent, and new entrepreneurship), using data from the Global Entrepreneurship Monitor and Heritage Foundation, with a sample of 99 countries for the period 2001-2017. Through panel data, the main findings show that (a) regulations regarding new business creation have a stronger influence on new entrepreneurship, (b) social norms have more influence on potential entrepreneurs and individual perceptions regarding their self-capacity and experience to start a new business, and (c) the cultural-cognitive dimension has a stronger influence on nascent entrepreneurship. Policymakers could consider these results to promote and generate target group policies that effectively encourage entrepreneurial activity, which is also distinguished by the level of development among countries.This paper examines how regulations, social norms, and cultural beliefs affect entrepreneurs at three different stages. We analyse how the institutional environment influences people's decisions when it comes to entrepreneurship across countries. By understanding the influence of regulations, social norms, and cultural-cognitive dimensions on the entrepreneurial process, policymakers can design targeted policies to promote entrepreneurship effectively. It is crucial to consider the specific needs and circumstances of different countries, as levels of development can influence entrepreneurial activity. We found that government regulations relating to starting new businesses have a significant impact on more advanced stages of entrepreneurship than potential or nascent entrepreneurship. Social norms play a crucial role in influencing potential entrepreneurs. People's perceptions of their own abilities and experiences in starting a business are strongly influenced by social expectations and norms. The cultural-cognitive dimension, which includes shared beliefs and values, has a greater impact across all stages.