Performance of Entrepreneurship and its Effects on Economic Development: The Case of Romania and Poland

Abstract

The entrepreneurship is significant for stimulating the economic development of countries. The
policy makers from countries around the world joined forces, in recent years, to find the appropriate measures
that can stimulate and support entrepreneurship. Moreover, given that the economic turmoil caused in recent
years by various crises (financial, now health) have significantly affected the business environment and the
economies of all countries, the attention of decision makers but also of researchers for identifying measures to
help entrepreneurship has increased. In this context, our paper analysis the effects the relation between
entrepreneurial performance and economic development for two countries: Romania and Poland, focusing on
a comparative assessment. We try to identify if increased entrepreneurial performance could improve the
economies of the two countries considered. For the empirical analysis we use two dependent variables as proxy
for the level of economic development, and a set of eight indicators that measure the entrepreneurial
performance. The analysis comprises in graphical, comparative and also panel-data estimation techniques and
targets the period between 2008 and 2016. Our results show that entrepreneurial performance can sustain and
stimulate competitiveness of the two considered countries but also their economic growth. Our results could
be of interest to decision makers from Romania and Poland that intend to increase economic development
through the entrepreneurial sector.