Entrepreneurial Project Financing: Challengers and Opportunities for Economic Growth

This study, employing the descriptive-analytical approach and the case study method, aimed to examine the impact of entrepreneurial project financing on economic growth in a sample of OECD countries from 2007 to 2022, considering the challenges entrepreneurs face in obtaining the necessary financial resources. The explanatory variable, entrepreneurial project financing, was represented by three key indicators: the outstanding business loans index, the government loan guarantees index, and the venture capital index, while economic growth, as the dependent variable, was measured using the absolute GDP index. By utilizing panel data analysis and EViews 13, the study found a positive relationship between entrepreneurial project financing indicators and real GDP in the examined countries during the period (2007–2022). Specifically, every additional one million USD obtained by entrepreneurs through outstanding business loans, government loan guarantees, and venture capital investments led to an increase in real GDP by 0.096443, 0.019214, and 0.035446 million USD, respectively. This positive effect highlights the efficiency of financial and banking institutions in facilitating access to funding, supporting capital accumulation, and fostering innovation. The availability of financial resources has enabled entrepreneurs to introduce new products and services, stimulating aggregate demand and contributing to sustained economic growth. The study underscores the crucial role of entrepreneurial financing in driving economic development and suggests that enhancing entrepreneurs' financial accessibility can further strengthen their economic performance. Therefore, policymakers should focus on improving financial infrastructure and expanding funding opportunities to maximize the economic benefits of entrepreneurial activities.