The Relationship between Entrepreneurship, Business Environment and Economic Development in GEM Countries

Economic development is a favorable aim for all nations and meeting this aim requires a good understanding of variables taking part in this process. The role of entrepreneurship in economic development has been mentioned by many authors as an important one. Although creating jobs is a function of entrepreneurial process, but it is not the only one. Entrepreneurship includes searching for opportunities, taking risks, persisting for realization of ideas and turning them to goods, services and other useful solutions.To examine the effect of entrepreneurship on economic development, the research must explain the role of variables which indicate entrepreneurship activities, in economic development indexes like income per-capita, employment, knowledge creation and equality in income distribution. To do this, we plotted our research’s conceptual model as shown in methodology section.Based on the literature reviewed in this article, we constructed our conceptual model which shows the hypothesized relations between variables. This model is shown as below