Natural resource rents and opportunity and necessity entrepreneurship

Natural resource rents theoretically can stimulate entrepreneurship as a production inputs. In other hands, natural resource rents can change intensives of potential entrepreneur, reduce opportunity driven entrepreneurship and increase necessity driven entrepreneurship. However, necessity driven entrepreneurship is not is not an unproductive activity, but its impact on economic growth and development is very different from entrepreneurial activities that are based on innovative ideas and technologies which determine the productive capabilities of an economy. This paper has examined the effect of natural resource rents on opportunity driven entrepreneurship and necessity driven entrepreneurship in 45 selected countries during 2008-2017 using GMM. The results show that natural resource rents have significant negative impact on opportunity entrepreneurship while it has significant positive impact on necessity entrepreneurship. based on the results, oil rents managements along with control of corruption and improve institutional framework are necessary to increase opportunity entrepreneurship in oil rich countries.