Entrepreneurial environment and varieties of capitalism

Abstract

A countries' variety of capitalism could become vulnerable to change under the existence of an external factor. This thesis seeks answers for "In which varieties of capitalisms does the entrepreneurial environment have a statistically significant impact on the enrolment rates of secondary school vocational education and training (VET)?", and in the varieties of capitalism where we find statistically significant impact, "Which entrepreneurial factors (i.e., prominent principal components (PCs)) structure the entrepreneurial environment the most?" By using the Feasible Generalized Least Square and Principal Component Analysis models, I argue that the entrepreneurial environment shapes the institutional educational VET structure of a country, in other words, varieties of capitalism, by statistically significantly impacting the secondary school VET enrolment rates. I found that the entrepreneurial environment impacts the VET structures of Emerging Market Economies (EMEs ), Advanced EMEs, and European Market Economies. In addition, the most prominent PCs in the Brazilian, Chilean, Chinese, and Hungarian entrepreneurial environments are risk capital, internationalization, and product innovation. Lastly, I finalize this thesis by stating further research suggestions and policy implications.