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Entrepreneurial activity is a key driver of economic development, yet its determinants are complex and context-dependent. This study employs an integrated Institutional–PEST framework to examine the drivers of entrepreneurship across 36 countries from 2021 to 2023. Using a mixed-methods approach combining Random Forest regression, fuzzy-set qualitative comparative analysis (fsQCA), and Necessary Condition Analysis (NCA), we identify both individual and configurational determinants. Empirical results show that social and cultural norms are consistent and pivotal enablers of entrepreneurial activity. In contrast, factors like entrepreneurial education, government policy, and economic growth have context-dependent effects. While technological factors contribute positively, they are insufficient without supportive institutional and human capital conditions. The analysis reveals three distinct configurational pathways, demonstrating how different combinations of institutional, social, financial, and technological resources can foster high entrepreneurial performance. These findings offer a nuanced understanding of the causal mechanisms driving entrepreneurship. Supportive cultural attitudes matter more for entrepreneurship than previously thought. Our study of 36 countries from 2021 to 2023 reveals that while factors like government policy and economic growth are important, a society’s underlying social and cultural norms consistently play the most crucial role in encouraging people to start new businesses. We identified three primary pathways to success, showing there is no single recipe for a thriving entrepreneurial ecosystem. Thus, the principal implication of this study is for policy: governments should design context-sensitive strategies that align with and nurture their nation’s unique social fabric, rather than adopting one-size-fits-all solutions.
Huang et al. (Sat,) studied this question.