Infrastructure

Entrepreneurs contribute significantly to economic growth by innovating and creating jobs. An entrepreneur's personal characteristics can play an important role in this process, but without the availability of essential resources, including appropriate infrastructures, success can be limited. Infrastructure can be defined as both the physical and the social resources necessary to succeed in new ventures. Having access to appropriate infrastructures enhances the likelihood that entrepreneurs will exploit their personal characteristics, their ideas, and their potential. On the other hand, entrepreneurs in transitioning countries often face formal, informal, and environmental barriers that can block access to infrastructure and therefore inhibit their ventures' success.

Well-established infrastructures reduce transaction costs by reducing the effect of distance between regions and integrating markets, thereby reducing unnecessary burdens on entrepreneurs. A well-established ...