ECONOMIC FREEDOM: LOOKING FOR ANSWERS IN THE ENTREPRENEURIAL ACTIVITY
ECONOMIC FREEDOM: LOOKING FOR ANSWERS IN THE ENTREPRENEURIAL ACTIVITY

Summary/Abstract: The entrepreneur fires up the market mechanism through his actions or, in other words, is the driving force of the market process. However, in order to carry out the entrepreneurial activity and to enjoy a competitive market, it is clearly necessary to have a stable framework, based on freedom. The question is: how can economic freedom influence the entrepreneurial activity? To answer this question, we seek to identify and demonstrate (once again) the link between economic freedom and entrepreneurship. Economic freedom explains some aspects at the level of governmental influence on the economic activity, taxes on entrepreneurial activity, property rights, openness to international trade, the monetary system, etc. All these dimensions are focused on the way institutions exercise their influence on the rules of the game. A literature review was undertaken, and quantitative analysis techniques were used to achieve the abovementioned objective. Looking back, history proved that human evolution is based on the principles of freedom, regardless of the form it may take. Consistent with most of the studies available in the literature, we can conclude that countries with a high degree of economic freedom champion entrepreneurial activities. Economic freedom provides individuals that have entrepreneurial skills with the opportunity to act for a potential profit. Alternatively, (any kind of) restricted freedom causes changes in the behaviour of individuals and, by extension, in the activities of entrepreneurs.

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