How has formal institutions influenced opportunity and necessity entrepreneurship? The case of brics economies

Using a panel data of BRICS economies, this study looks at how formal institutions have influenced various types of entrepreneurship. The study concentrated mainly on the following formal institutional factors: fiscal freedom, business freedom, property rights, financial freedom, labour freedom, and investment freedom. For the opportunity entrepreneurship, the result is not statistically significant. With the exception of business freedom, the remaining institutional factors have negative relationship with opportunity entrepreneurship. Fiscal freedom and business freedom show negative significant relationship with necessity entrepreneurship. The result also shows that business freedom has a negative significant effect on female opportunity entrepreneurship. The study further reveals that fiscal freedom, business freedom and financial freedom have a negative significant effect on men necessity entrepreneurship. Population growth has a positive effect on all categories of entrepreneurship whiles unemployment contributes negatively to all categories of entrepreneurship.