Do entrepreneurial resources drive startup activation? Mediating effect of entrepreneurial orientation

Abstract

In order to create an entrepreneurial ecosystem at the national level, this study aims to examine the mediating role of entrepreneurial orientation between entrepreneurial resources and startup activities. Our empirical results based on samples from the Adult Population Survey (APS) and Global Entrepreneurship Monitor (GEM) data revealed that entrepreneurial resources have a positive impact on startup activation and entrepreneurial orientation plays a significant role as a mediator in the entrepreneurial resource-startup activation relationship. Our results suggest that in a business ecosystem where entrepreneurial resources persistently exist, individuals are more likely to participate in startup activation, and entrepreneurial orientation can promote startup activity not only in countries rich in entrepreneurial resources but also in emerging countries where they are scarce. Therefore, this study emphasizes the need for efforts to increase entrepreneurial orientation as well as entrepreneurial resources to create an entrepreneurial ecosystem where startups actively appear.