Building an International Entrepreneurship Index using the PSR framework

This paper builds an International Index for Entrepreneurship (IIE) for the year 2018, by using a conceptual framework named PSR (Pressures-State-Response) to encapsulate the contextual aspect of entrepreneurship globally. In the past, the indices have used a methodological framework of composite indices. This paper uses the PSR framework to show how these indicators fall into the categories of pressure, state, and response, and concentrates on how these subsystems are interrelated. The study considers 41 countries for the construction of the index. We also check the correlation between the IIE and other growth indicators such as the corruption perception index, the economic freedom summary index, GDP per capita, and trade openness using suitable statistical tools.The correlation analysis demonstrates that the IIE and the Economic Freedom Summary Index have a positive association.