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The purpose of this paper is to define the way of influence of national culture on the performance of entrepreneurship. As a possible channel of this influence, the perceptions of public policy by entrepreneurs have been analysed.

The data were collected from a survey conducted in 2014-2015, which consist of 207 surveyed entrepreneurs from Slovakia and 197 from Ukraine. The author analyses the perception of government policy in the field of entrepreneurship, institutional and personal trust and personal characteristics of respondents.

The main finding is that the coherence of formal and informal institutions in the representations of entrepreneurs affects the performance of their business. Perceptions of government actions seems to be endogenous to unobservable national culture. Entrepreneurs’ trust was found to be important in countries with different institutional environment.

Based on these findings, it would be possible to improve the stimulation of government policies for business by taking into account the most important types of policies for business performance in the definite institutional environment.

This is the first study in examining the exact mechanisms of the national culture’s influence on business development through entrepreneurs’ perceptions.

The purpose of this paper is to empirically define the ways in which informal institutions influence entrepreneurial intentions. It tests the statement that informal institutions can have an impact on people’s decisions, directly and indirectly, by affecting their perceptions of the external world.

The paper develops a theoretical model of the probability of starting a business by a potential entrepreneur. The model takes into account a comparison of current wages and future profits. The empirical analysis is based on European social survey data at the individual level. Three-stage least squares regression helps to overcome the endogeneity problem since perceptions of government actions are individual specific.

Informal institutions can affect expectations about future activities in a person’s lifetime utility maximisation problem. The paper empirically concludes that these institutions are connected with a person’s satisfaction with government and can indirectly affect the probability to be self-employed.

Research limitations are related to employing proxies for informal institutions, using only the “satisfaction with government” as a perceptions indicator, and cross-sectional data while defining the causal effect.

Policymakers should consider that institutional settings affect people in a different manner when developing their policies.

The paper makes a novel contribution by analysing the effect of informal institutions on the probability to start a business by using both theoretical arguments and empirical tests. Building upon insights from a broader informal institutions’ effect on entrepreneurial intentions, this paper is the first to study a linkage between informal institutions and their indirect effect on people’s profit expectations.

The purpose of this paper is to examine the potential pathway of influence of formal and informal institutions and economic development on the business productive behaviour at the national level.

In the paper SEM models and regression analysis are used to define the causal relationships. Using data from cultural dimensions of Hofstede, Inglehart and Tabellini, proxies for formal institutions and economic development this research empirically examines the way of influence of these factors on entrepreneurship performance in the national economy.

This paper demonstrates that, stimulating by the economic growth, formal and informal institutions could affect business productive behaviour at the macro level in both direct and indirect ways through each other. Formal and informal institutions were found to act as substitutes. The author argues that the decision to act productively is not just a result of the formal institutional framework – “bad” outcomes of business development may also be a consequence of the activity of certain informal institutions as well as caused by poor levels of national economic development.

Based on the findings of this research it is possible to improve the methods of formation of stimulation policy for driving business behaviour in a productive way by taking into account existing formal and informal institutions and the level of development of the national economy.

This paper by using SEM techniques examines the causal relationships between the quality of formal and informal institutions and productivity of entrepreneurs at the national level.