Is growth in entrepreneurial activity truly beneficial for a prosperous and equitable economy?

Abstract

This study attempts to refine and extend the understanding of how entrepreneurial activity in combination with various institutional and economic factors may increase or decrease the levels of economic inequality of a country. We use fuzzy-set qualitative comparative analysis (fsQCA) methodology to obtain various configurations that arise when dimensions based on the national business systems framework are combined with entrepreneurial activity measures. We analysed configurations for two years, 2010 and 2018. Our findings suggest that there are several configurations of different types of entrepreneurial activities and institutional factors that lead to income inequality. However, there are also several configurations that promote income equality.