Southern University College of Business E-Journal


Background and Objective: Research addresses shortcomings in studies between a mature and developing economy within stages of development. Prior research has largely been homogenous with emphasis on overall development by country. This research isolates selected countries and stage – intentions, early stage, and established – of development. The main objective is to measure access to capital and developmental support in each stage of entrepreneurial development. Methods: The model considers four independent variables that measure financing, infrastructure, openness of the economy, and governmental support. A change variable isolates effects before and after the 2008 Financial Crisis. Secondary data were obtained from Global Enterprise Monitor (GEM) and analyzed by regression analysis for years 2001-2020. Results: Access to capital was a positive variable in the model, with the largest coefficient observed in early stage entrepreneurship for each level of economic development. Governmental support was inversely correlated. Conclusions: Findings indicate that financial access is crucial in early stages of development, while governmental support appears to have unintended consequences of stalling entrepreneurial development. Contribution / Value: The value of the research extends prior studies in isolating the significance of the model in predicting each stage of entrepreneurship, but also in differentiating mature economy from developing economy.