Economic Factors Influencing Entrepreneurial Activities: Literature Review

In the existing literature on entrepreneurship, there are various approaches to determining the factors affecting entrepreneurial activity, which can be explained in various disciplines of science. As an interdisciplinary study, entrepreneurship consists of aspects of economic, historical, psychological, political, social and cultural studies. All of these studies focus on entrepreneurship from different points of views. Since entrepreneurship is recognized as an appropriate tool for stimulating economic growth, increasing innovation and productivity and reduction of poverty, identification of determinants of entrepreneurial activity allows appropriate policies to increase productivity and economic growth in a single economy. Due to the wide range of factors which affecting entrepreneurial activities among countries, several studies have examined various factors affecting it. Therefore, the main purpose of this study is to investigate the economic factors affecting entrepreneurial activities at the macro level, which, given the literature available in this field, has a greater impact than other factors. The present study was conducted using descriptive analysis, literature reviews and collecting library resources such as books and theoretical and applied entrepreneurship papers. Finally, the collected resources were classified into two categories of supply and demand factors. The factors on the supply side include economic development, technological development, globalization, direct foreign investment and financial development, and demand factors include education, population growth, population density, income level, income gap, access to finance, Tax, labor market flexibility rules, political structure, immigration, unemployment rate, institutional characteristics and macroeconomic environment.