Role of government initiatives in shaping entrepreneurial intentions: A canonical correlation analysis

Authors

Ansar Waseem, University of Management & Technology, LahoreFollow
Yasir Rashid, University of Management & Technology, LahoreFollow
Ahmad Ahsan Akbar, University of South Asia, LahoreFollow

Abstract

Although, governments employ different policies to boost entrepreneurial activities in a country, these initiatives would remain futile if they fail to inculcate entrepreneurial intentions among citizens. This study aims to find out how government initiatives shape the perception of its citizens about entrepreneurship. The main idea of this paper is to identify a correlation between government initiatives and entrepreneurial perception using Global Entrepreneurship Monitor data. This research uses the parameters of perceived opportunity, perceived capability, and entrepreneurial intention to correlate them with different government initiatives such as supportive and relevant policies, taxes related policies, government entrepreneurship programs, commercial and legal infrastructure, physical infrastructure, and entrepreneurial education at the post-school stage. This multi-level framework is tested using canonical correlation analysis. Results validate our proposed conceptual framework by highlighting that government initiatives are significantly related to perception about opportunities, capabilities, and intention about entrepreneurship. The perception of capabilities and self-efficacy were the most important factors in gauging citizen’s perception about entrepreneurship. Similarly, government policies regarding taxes and bureaucracy, entrepreneurial education at the post-school stage, and physical infrastructure were the most important government interventions in shaping entrepreneurial perceptions among its citizens.

Keywords

Entrepreneurial perception, Government initiatives, Formal and informal institutions, Canonical correlation analysis

DOI

https://doi.org/10.54784/1990-6587.1325

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Recommended Citation

Waseem, A., Rashid, Y., & Akbar, A. A. (2021). Role of government initiatives in shaping entrepreneurial intentions: A canonical correlation analysis. Business Review, 16(1), 13-29. Retrieved from https://doi.org/10.54784/1990-6587.1325