The impact of Business Environment on Entrepreneurship development and Economic Growth in Developing Countries

The purpose of this study is to investigate and analysis the impact of the business environment on the Development of Entrepreneurship and Economic Growth. Using equations system (2 sls) and Panel data method during the 2010-2015 for 20 developing countries by higher than average income, has been carried out. In this study of the two regression equation has been used in the equation for the economic growth of entrepreneurial indicator variables , foreign direct investment , labour and fix capital and in the equation for the entrepreneurship indicator from variables of business regulations index and the government expenditure on education and the economic growth rate is used. Research findings illustrate that business regulations index indirectly and entrepreneurial index, foreign direct investment, labour and fix capital directly have significant and positive impact on the economic growth. Where as business regulations indicator and the government expenditure on education show significant and positive impact on entrepreneurship in research sample.