Pathways to prosperity: A configurational analysis of national entrepreneurship

Abstract

Entrepreneurial activity is a key driver of economic development, yet its determinants are complex and context-dependent. This study employs an integrated Institutional–PEST framework to examine the drivers of entrepreneurship across 36 countries from 2021 to 2023. Using a mixed-methods approach combining Random Forest regression, fuzzy-set qualitative comparative analysis (fsQCA), and Necessary Condition Analysis (NCA), we identify both individual and configurational determinants. Empirical results show that social and cultural norms are consistent and pivotal enablers of entrepreneurial activity. In contrast, factors like entrepreneurial education, government policy, and economic growth have context-dependent effects. While technological factors contribute positively, they are insufficient without supportive institutional and human capital conditions. The analysis reveals three distinct configurational pathways, demonstrating how different combinations of institutional, social, financial, and technological resources can foster high entrepreneurial performance. These findings offer a nuanced understanding of the causal mechanisms driving entrepreneurship.