The Role of Entrepreneurship in National Income Formation (In Developed Countries and Less Developed Countries) Shahraki Abdollaha, Kohansal Mohammad Rezab, Shamsuzaman Mohammadc aPh.D Student, Agricultural Economics, Ferdowsi University of Mashhad (International Branch), Mashhad, Iran bProfessor, Department of Agricultural Economics, Ferdowsi University of Mashhad, Mashhad, Iran cAssistant Professor, Department of Agricultural Economics and Business Management, Aligarh Muslim University, Aligarh, India Online published on 6 August, 2015. Abstract The aim of this study is to investigate the difference in National Income variances between developed and less developed countries (DC&LDC) according to the level of Total Entrepreneurship Activities (TEA). In addition, it was aimed to explain the relationship between TEA, National Saving (NNS), Taxes Rate and National Income (GNI) among the under study countries. Identifying the most important effective factor on National Income among Entrepreneurship, National Saving and Taxes, beside these aims, total results have been compared quantitatively which are parts of the aim of the present research. The method in this research is co relational quantitative methods, and data has been collected from 21 countries and in two groups of DC& LDC, that are member of Global Entrepreneurship Monitoring (GEM) at time periods from 2001 up to 2009. In order to test the theoretical model of the study and hypothesis, bi variants correlation analysis, Pearson Product-Moment Correlation Coefficient and multiple linear regressions (stepwise method) and the two-way between groups analysis of variance (Two-Way ANOVA) with help of SPSS (11.5) were used in this research. Results of the study showed that 33 percent of the variance in GNI is explained by factors which are included in the empirical model as predictor of the GNI, also results showed that there was no significant difference in GNI between DC and LDC according to the level of TEA. In other words, there is a similar impact of TEA on GNI between both groups of DC and LDC and there is no any difference in their variances, but higher the GNI, higher TEA in DC whereas, higher the GNI, lower the TEA in LDC. The empirical model in this study showed that 16 percent of total variance in GNI is uniquely explained by Tax whereas 13 percent of total variance in GNI is uniquely explained by TEA. This study found that in both DC and LDC, NNS had lower exposure rather than Tax rate and TEA Top Keywords Total Entrepreneurship Activities, National Income, National Saving, Tax Rate, GEM. Top |