Economic impact of entrepreneurship effect on growth and European Union countries panel data on analysis

The concept of entrepreneurship andentrepreneurship has gained significant importance in economics following the industrial revolution, particularly in business, which has gradually evolvedinto an independent science. Following Schumpeter'sresearch, scholarly literature has extensively examinedentrepreneurship in many fields, especially during thetwentieth century. In this context, it is imperative tocontemplate diverse viewpoints on the notion of entrepreneurship. Although the entrepreneur might be assessed as a production element, it is generallyrecognized as a crucial component of the market economy mechanism. The significance of discussions on entrepreneurship lies in its ability to provide theestablishment of new enterprises, generate fresh jobprospects, and consequently impact the income level of both society and the state. Furthermore, entrepreneurshiphas a crucial role in promoting societal well-being andwelfare. From a psychological, sociological, andeconomic perspective, the success of an entrepreneurialendeavor is crucial. The present work employed thepanel time series approach to investigate the correlationbetween economic growth and entrepreneurship across a sample of 20 nations with comprehensive datasets fromthe European Union spanning the years 2001 to 2023. The study included cointegration and causality testing. The results indicate a durable and statistically significantpositive correlation between the two variables, andsupport a unidirectional causality from entrepreneurshipto economic growth. Naturally, while it does not exert a singular impact on the rise in the income level of nations, it demonstrates that the policies promoting andfacilitating entrepreneurship to be adopted within theEuropean Union, indeed contribute to the augmentationof the income level of the union. Within the frameworkof policy recommendations aimed at boostingentrepreneurial activities, it is advisable to give priorityto underprivileged areas or communities, establisheducation and incentive programs for women and youth, facilitate credit opportunities, and enforce legal regulations for starting a business.