Contribution of banking and stock market development on the prospects of new business
DOI:
https://doi.org/10.23925/2179-3565.2023v14i2p88-105Palabras clave:
Moderator Model, Entrepreneurship Development, Stock Markets, Banking SectorResumen
The relationship between entrepreneurship and financial development is essential for economic growth and stability of a country. The success of entrepreneurship is heavily influenced by the financial sector development as the financial sector provides a platform for companies to raise capital and obtain funding for expansion and progress. Therefore, the main objective of the current study is to explore the effects of financial sector development on the entrepreneurship progress. The data is collected from minimum 53 countries based on available data and analyzed by using Panel Feasible Generalized Least Squares (FGLS) regression method. The results show a positive association between entrepreneurial intentions and entrepreneurship development in the presence of banking sector progress. Whereas, perceived opportunities have negative association with the entrepreneurship development with the growth of banking sector, stock market and financial market. Results also indicate a positive association between opportunity entrepreneurship and entrepreneurship development. These findings have implication for policy makers to promote a well-developed financial sector in order to encourage new business entrants.
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