Most nations acclaim their differences in economic development to their wealth in assets and security ownership, for instance, stocks. However, the focus of discussion should be on entrepreneurship. Even though not given much thought, entrepreneurial development could significantly contribute to a nation's economic advancement. Thus, a nation's institutions could spearhead its economic development through their impeccable market responsiveness and entrepreneurial success. However, such an advancement might be affected by several factors such as institutional, cultural, and psychological contexts of an institution. Generally, they have been known to affect entrepreneurs' processes and proclivities. Empirical testing has been performed to develop hypothetical theories about how certain institutional conditions affect the capacity of an individual to make certain independent choices. In addition, a hypothetical idea has been formed on the institutional conditions as being more convenient for group-oriented entrepreneurs. Lastly, it is argued that entrepreneurs' behavior is easily affected by the social environment. Researchers try to prove that entrepreneurial practices have blanket effects on the market structures, nature, and direction of economic activities. Some essential ideas are featured in this chapter include the following ones.
Personal Agency in Entrepreneurship
The hypothesis established is that economic policies constrain economic freedom to allay people's alertness to profit opportunities . There is no widely accepted scope for determining the strength of a person's disposition to be alert. If researchers are to find ways of measuring a person's degree of alertness to entrepreneurial opportunities, much more work is to be done. The inherent nature of entrepreneurial alertness dampens its ability to be empirically studied, and for this reason, the subject can be tested by discussions only. Two tests could be carried out to determine the propensity of entrepreneurs in highly regulated industries and those in less regulated industries. The first test would involve measuring the mean personal scores of both entrepreneurs and finding their important differences. The second criterion entails comparing mean LOC regarding self-efficacy and self-agency for entrepreneurs in the same industry before and after economic deregulation. An ANCOVA test to determine the entrepreneur's personal agency strength would be performed. One problem would arise since it will not be known how long it would take for the deregulatory measure to take effect on entrepreneurs due to the time that elapses as the bills pass through political debates and come into force on the economy.