Growth-oriented entrepreneurs create significant potential for economic wealth. This type of high impact entrepreneurial behavior is partly affected by national institutional arrangements. Factors like government regulations and public policies influence the extent to which individuals perceive entrepreneurial and growth opportunities, and which kind of strategic decisions they are eager to make (Baumol, 1990; Parker and Robson, 2004; Verheul et al., 2002). In this paper we study the association between country-level determinants’ and growth-oriented entrepreneurial behavior.

Scott’s (1995) framework offers a good theoretical grounding for the study of entrepreneurs’ growth aspirations. He categorized the institutional arrangements into three pillars: regulative, cognitive, and normative. The regulatory dimension of country’s institutional arrangements which comprise regulations, policies, rules, and laws affect the availability of resources and perception of growth opportunities necessary in pursuing growth. Similarly, the cognitive dimension, which incorporates the nature of reality and schemata according to which individuals interpret surrounding information, modifies the perception of necessary abilities required in pursuing intended outcomes. In addition, values and norms included in the normative dimension define the desired goals or standards, and thus, they influence entrepreneurial behavior and its appreciation in society. In this paper we hypothesize that each institutional dimension influences the entrepreneurs’ growth orientation.