Extent of democratization as evidenced through deliberative decision making (where all the actors of state - citizens, government and activists have the Rights, Ability and Opportunity to participate in deliberations about the content of that decision) may be an essential condition to foster entrepreneurship. Democratization does-not necessarily mean democracy as in elected forms of government.
I was intrigued by your question and it is unclear; are you suggesting that democratisation is needed for entrepreneurship? If so, I beg to differ. Please look at China (PRC) – that country has spawned thousands of entrepreneurs, many of them are millionaires… According to the Swiss bank Credit Suisse in 2013, China has 6% of the world’s ultra-rich ( fortunes in excess of $50 million), second only to the USA which has about 50%. Many ”undemocratic” countries seem to have created entrepreneurs and the reasons may be wide and varied.
Perhaps, it might be worth your while to take a new look at the premise of your question.
Thanks for your passionate response Phil. I was suggesting nothing except raising a question. I am happy that you found it worth responding.
Entrepreneurship may not be measured as number of super-rich though wealth could be and ought to be one of the consequences of entrepreneurship.
China may not have deliberative participation of activists in the decision making but the role of government and citizens is not insignificant. China may not be democratic as in terms of conventional perception but there is a lot of deliberative governance in the country led by a lot of western educated political leaders.
One way to look at the data that you share could be that China has possibly 4 times the population as the US but only a tenth of the number of super-rich when compare with the US.
creativity and innovativeness is developed through freedom of thought. with this in to consideration it can be said that entrepreneurship and democratisation are associated with each other .
Mukul I know there is a strong correlation between entrepreneurship and good governance. Good governance been right policies, presence of requisite infrastructure, government stability, security and so on.
See Ofili, O. U. (2014). Challenges Facing Entrepreneurship in Nigeria. International Journal of Business and Management; Vol. 9, No. 12; 2014
So if democratization of a country provides all the qualities stated above then it will indeed positively aid entrepreneurship.
All the best with your research
Check GEDI report Global Entrepreneurship Development Index 2016 where they view some correlations between entrepreneurship and other variables such as economic development, economic freedom and peace.
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