Entropy characteristics and structural model in the process of entrepreneurship

Chen Sheng, Kong Xiao Wei, Yun Li Hong — Mon, 22 Apr 2024 00:00:00 +0000

The current national economy needs to foster a culture of entrepreneurship, encourage entrepreneurial initiatives, and create an entrepreneurial ecosystem. In the field of business studies, many scholars have applied various entropy theories to enrich and advance business knowledge. However, the current literature on entrepreneurship and entropy is sparse and disjointed. The previous research does not offer a coherent framework for integrating these two concepts. This research aims to propose a new concept of entrepreneurial entropy. The study uses the literature review, structural equation modelling, and case analysis to construct a preliminary model of entrepreneurial entropy. The study investigated the entrepreneurial performance of four different teams using entropy analysis. The researchers applied six key indicators of entrepreneurship that were developed by four groups of entrepreneurs. They used the structured equation of entropy to calculate the total entropy value for each group. By comparing the entropy values, they were able to draw quantitative conclusions about the effectiveness of the entrepreneurship process. The study will introduce entropy theory to the domain of entrepreneurship and establish a new direction and area of entrepreneurship research. Overall, the proposed concept of entrepreneurial entropy represents a significant step forward in the quest to enrich and advance our knowledge of business and entrepreneurship.

Determinants of banking crises (Fragility) in the Malawian banking sector

Thomson Kumwenda, Ronald Mangani, Jacob Mazalale, Exley Silumbu — Mon, 22 Apr 2024 00:00:00 +0000

This paper studies the determinants of banking crises or fragility in Malawi. In this study we modelled banking crisis conditions in a developing country banking sector applying a Logistic Regression model using data for Malawi for the period 1980 to 2022. We embedded banking crisis dummy, bank specific and macroeconomic drivers of crisis in the model. Our study finds that under crisis conditions macroeconomic, monetary and fiscal drivers such as the ratio of external debt stock to gross national income ratio, debt service costs to primary export revenue ratio, broad money to GDP ratio, changes in real interest rates, growth in real GDP, total reserves to GDP ratio has a negative and significant impact on banking crisis and fragility in Malawi. These findings are important for policy makers especially in an environment where fiscal dominance is prevalent and drives a significant build up of domestic debt (treasury assets) on the banks’ balance sheets.

Journal of Accounting, Business and Finance Research

Entropy characteristics and structural model in the process of entrepreneurship

Determinants of banking crises (Fragility) in the Malawian banking sector