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Our paper examines the potential effect of different types of entrepreneurship (in particular, early-stage entrepreneurship, opportunity-driven entrepreneurship, and necessity-driven entrepreneurship) on economic growth at a national level and aims to identify whether the contribution of entrepreneurship to economic growth differs according to the stage of economic development of a country. Our empirical analysis is based on the panel data, which covers 17 years (2002–2018) and 22 European countries, classified into two groups. The results suggest that all three types of entrepreneurship have a greater impact on economic growth for the entire sample of European countries, and some types of entrepreneurship are more important than others. We find that opportunity-driven entrepreneurship and early-stage entrepreneurship would be key factors in stimulating economic growth across the sample of European countries. Our estimations also show that opportunity-driven entrepreneurship would have a greater impact in transition countries, while necessity-driven entrepreneurship would have a stronger influence in the innovation-driven countries. The results of our research could be of interest to policymakers, as it can help in identifying and implementing the most appropriate measures to eliminate the obstacles in the macroeconomic environment that entrepreneurs face, and measures to support innovative entrepreneurial activities.

The Nexus between Entrepreneurship and Economic Growth: A Comparative Analysis on Groups of Countries