Macroeconomic Stability and Funding Access Drive Sustainable Entrepreneurship
Category: Sustainability · Effect: Strong effect · Year: 2023
Sustainable entrepreneurship is significantly influenced by macroeconomic stability, access to finance, knowledge creation, entrepreneurial capabilities, regulatory frameworks, and environmental performance.
Design Takeaway
Integrate an understanding of the economic, financial, and regulatory environment into the design process for sustainable solutions.
Why It Matters
Understanding these determinants is crucial for designers and engineers developing sustainable products and services. It highlights the need to consider the broader economic and regulatory landscape in which these innovations will be launched and sustained.
Key Finding
The study found that economic conditions, financial availability, knowledge, skills, laws, and environmental factors all play a role in how sustainable businesses emerge and grow, with varying degrees of impact.
Key Findings
- External factors significantly influence sustainable entrepreneurship.
- The strength and direction of relationships between variables vary.
Research Evidence
Aim: To assess the impact of selected determinants on sustainable entrepreneurship in five Central Eastern European countries from 2008 to 2021.
Method: Econometric analysis (correlation coefficients, least squares method, vector autoregression model)
Procedure: An original sustainable entrepreneurship index was created and used to evaluate the influence of external factors like macroeconomic stability, funding access, knowledge creation, entrepreneurial capabilities, legal regulations, and an environmental index on sustainable entrepreneurship in Bulgaria, Croatia, Poland, Romania, and Hungary.
Context: Central Eastern European countries (2008-2021)
Design Principle
Sustainable innovation thrives within a supportive ecosystem of economic stability, accessible funding, and enabling regulations.
How to Apply
When designing a new sustainable product or service, research the current and projected economic stability, funding opportunities, and regulatory landscape in your target market.
Limitations
The study focuses on specific Central Eastern European countries and may not be generalizable to all regions.
Student Guide (IB Design Technology)
Simple Explanation: For sustainable businesses to succeed, they need a stable economy, easy access to money, good knowledge, skilled people, helpful laws, and a focus on the environment.
Why This Matters: This research shows that even the best sustainable design ideas can struggle if the economic and regulatory conditions aren't right, so understanding these factors is key to successful design projects.
Critical Thinking: How might a designer proactively address or mitigate the risks posed by macroeconomic instability or restrictive regulations when developing a sustainable product?
IA-Ready Paragraph: This research highlights that the success of sustainable entrepreneurship is significantly influenced by external factors such as macroeconomic stability, access to finance, and regulatory frameworks. Therefore, any design project aiming for sustainability must consider these broader contextual elements to ensure viability and impact.
Project Tips
- When proposing a sustainable design project, consider how external economic and policy factors might affect its success.
- Research the funding landscape for sustainable innovations in your chosen market.
How to Use in IA
- Reference this study when discussing the external factors that influence the viability and adoption of your sustainable design solution.
Examiner Tips
- Demonstrate an awareness of the broader socio-economic context when evaluating the feasibility of a sustainable design project.
Independent Variable: ["Macroeconomic stability","Access to finance","Knowledge creation","Entrepreneurial capabilities","Legal regulations","Environmental index"]
Dependent Variable: Sustainable entrepreneurship
Controlled Variables: ["Country (Bulgaria, Croatia, Poland, Romania, Hungary)","Time period (2008-2021)"]
Strengths
- Utilizes an original index for sustainable entrepreneurship.
- Employs robust econometric models for analysis.
Critical Questions
- To what extent can policy interventions effectively address the identified determinants of sustainable entrepreneurship?
- How do these determinants interact with each other to influence sustainable entrepreneurial outcomes?
Extended Essay Application
- An Extended Essay could investigate the specific impact of EU environmental regulations on sustainable business formation in a particular member state, drawing on the methodologies and findings of this paper.
Source
Sustainable entrepreneurship and its determinants.The case of selected Central Eastern EuropeanCountries: From the global financial crisis to theCOVID-19 pandemic · Ekonomista · 2023 · 10.52335/ekon/174760