The Role of Environmental Factors in Entrepreneurship Development in the Public Sector

Document Type : Research Paper

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Abstract

The purpose of this study is to study the role of environmental determinants in entrepreneurship in the public sector. This is an applied and descriptive-correlation study. The statistical population is Tehran Municipality's employees and clients.‌ A sample of 220 municipal employees and a sample of 200 citizens were selected to evaluate the role of environmental factors in entrepreneurship and  municipality’s performance (citizen satisfaction) respectively. Questionnaires were used for data collection and the data was analyzed using regression and structural equation model. The findings showed that environmental determinants have different effects on entrepreneurship. Legal constraints, political interventions, short-term time horizon, power distance, uncertainty avoidance, Fatalism, individualism, were negatively associated with entrepreneurship and entrepreneurship are hampered. Public visibility (media attention), ­competition and technology were positively associated with entrepreneurship and incentives entrepreneurship. Finally, public entrepreneurship has a positive relationship with public sector performance (satisfaction of citizens) and will lead to its improvement.

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