Does democracy foster entrepreneurship?

Abstract Entrepreneurship has been connected to several socio-economic issues. However, despite the growing conjectures, links with democracy have yet be substantiated. By using a country-level panel dataset over 1972–2010 period, we find evidence that is conducive entrepreneurship. We shed light on intensity and multidimensionality of by showing promotion free social interchange direct involvement civil society in political processes are two dimensions driving such effect. additionally observe entrepreneurship sensitive both contemporaneous historical values democracy. providing first systematic empirical directly connected, this study suggests consider their ongoing concomitant retreats as related phenomena.