Question

Explain the institution-based views in light of their effect on entrepreneurial success.

Answer 1

Entrepreneur success depends on formal and Informal institutions. First and foremost is formal institutions. Formal institutions refers to the government and government created institutions, rules and norms. Thus, if these norms and rules are favorable, these off course, would lead to rise in instances of entrepreneurial successes. In most of democratic countries, government institutions tend to support entrepreneurial activities and support them financially and technically.

Furthermore, informal institutions also influences the entrepreneurial successes. Society values and norms come under the informal institution. If these values and norms promote freedom and flexibility, these would cause rise in entrepreneurial activities.