Entrepreneurship in a Challenging Business Climate: an Analysis of the Macroeconomic Determinants of New-Business Creation in Congo-Brazzaville
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12
This article analyzes the determining factors in the creation of new enterprises in Congo-Brazzaville in an adverse context characterized by an unfavorable economic environment for business and a high rate of unemployment. By adopting a more global approach using macroeconomic data to grasp the influence of the general economic context on the creation of enterprises, the results of this research indicate that three factors in the macroeconomic environment have a positive influence on the creation of enterprises. These are unemployment, real gross domestic product per capita, and the availability of credit in the economy. Econometric estimates show, however, that unemployment seems to be the most significant macroeconomic variable. These results, taking into account the nature of the enterprises created and the weight of unemployment, show the development of a form of entrepreneurship focused on survival. This suggests a series of policy recommendations concerning the implementation of entrepreneurship support programs.
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