The Determinants of Entrepreneurship in Turkey

Entrepreneurship is one of the main factors of production and hence, it plays a key role in determining the level of production and employment. Together with the globalization process entrepreneurship has become a fundamental determinant of economic growth and development. Thus, establishing the drivers of entrepreneurship is crucial for determining the necessary policies in order to increase the level of economic growth and development of a country. This paper investigates the determinants of entrepreneurship in Turkey by using individual level data taken from the Global Entrepreneurship Monitor [1]. The Global Entrepreneurship Monitor [2] provides a rich dataset with regard to the entrepreneurial behaviour and attitudes of individuals and how the national context of countries affect entrepreneurship. By considering the current economics literature demographic and economic features of individuals are used as potential determinants of becoming an entrepreneur. Moreover, similar to Arenius and Minniti [3]'s study perceptual variables are taken into account as explanatory variables of entrepreneurship in the empirical analysis. The results of our empirical study put forward the determinants of entrepreneurship in Turkey at the individual level. Hence, we contribute to the existing literature by presenting new evidence with regard to the determinants of entrepreneurship in Turkey. The results of our analysis will be helpful for policy makers in designing new policies in order to increase the number of entrepreneurs in Turkey.