IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2021v4p12-21.html
   My bibliography  Save this article

The 2008-2009 Global Crisis And Entrepreneurial Activity

Author

Listed:
  • HALIL D. KAYA

    (NORTHEASTERN STATE UNIVERSITY)

Abstract

This paper examines how entrepreneurial activity and the factors associated with entrepreneurial activity have changed after the 2008-2009 Global Financial Crisis. For entrepreneurial activity, we look at new business density and new business registrations. For factors associated with entrepreneurial activity, we look at cost of business start-up procedures, cost to import and export, required number of tax payments, total tax rate, required number of procedures for start-ups, required time for different procedures, credit coverage, and legal rights. Our results show that most categories (i.e. taxes, number of procedures required, time required, credit coverage, and legal rights) improved over our sample period. This shows that countries were showing efforts to make improvements in these areas. The results for costs are mixed. The cost of business start-up procedures improved (i.e. declined), but both the cost to export and cost to import deteriorated (i.e. increased) over the sample period. The increases in cost to export and cost to import might have been due to governments’ actions to protect their own producers. We conclude that while most of the measures had improved during this period, these improvements do not seem to translate into an improvement in the number of new businesses. The results are mixed at best. New business density slightly declined, while new business registrations increased. Overall, our findings indicate that when facing a global economic/financial crisis, government action is essential in preventing the collapse of the small business sector. The timely changes in laws and regulations help protect the entrepreneurial environment.

Suggested Citation

  • Halil D. Kaya, 2021. "The 2008-2009 Global Crisis And Entrepreneurial Activity," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 12-21, August.
    • Handle: RePEc:cbu:jrnlec:y:2021:v:4:p:12-21
    as

    Download full text from publisher

    File URL: https://www.utgjiu.ro/revista/ec/pdf/2021-04/02_Halil1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marco Cagetti & Mariacristina De Nardi, 2006. "Entrepreneurship, Frictions, and Wealth," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 835-870, October.
    2. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
    3. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
    4. Scott Shane, 2011. "The Great Recession’s effect on entrepreneurship," Economic Commentary, Federal Reserve Bank of Cleveland, issue Mar.
    5. Emilio Congregado & Antonio Golpe & Simon Parker, 2012. "The dynamics of entrepreneurship: hysteresis, business cycles and government policy," Empirical Economics, Springer, vol. 43(3), pages 1239-1261, December.
    6. Carol Moore & Richard Mueller, 2002. "The transition from paid to self-employment in Canada: the importance of push factors," Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 791-801.
    7. Roy Thurik, 2014. "Entrepreneurship and the business cycle," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-90, October.
    8. GiSeung Kim & Joonmo Cho, 2009. "Entry dynamics of self-employment in South Korea," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(3), pages 303-323, May.
    9. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521728355, March.
    10. Yu, Li & Orazem, Peter F. & Jolly, Robert W., 2014. "Entrepreneurship over the business cycle," Economics Letters, Elsevier, vol. 122(2), pages 105-110.
    11. Robert W. Fairlie, 2013. "Entrepreneurship, Economic Conditions, and the Great Recession," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(2), pages 207-231, June.
    12. Constant, Amelie F. & Zimmermann, Klaus F., 2004. "Self-Employment Dynamics Across the Business Cycle: Migrants Versus Natives," IZA Discussion Papers 1386, Institute of Labor Economics (IZA).
    13. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521899604, March.
    14. Rampini, Adriano A., 2004. "Entrepreneurial activity, risk, and the business cycle," Journal of Monetary Economics, Elsevier, vol. 51(3), pages 555-573, April.
    15. Zimmermann, Klaus F. & Constant, Amelie, 2004. "Self-Employment Dynamics Across the Business Cycle: Migrants vs Natives," CEPR Discussion Papers 4754, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ivan Arnautovic & Veljko Samardzic & Goran Vitomir & Tatjana Davidov & Sanda Nastic & Slobodan Popovic, 2021. "Monitoring Of Monetary-Credit Policy As Part Of The Decision-Making Of The Top Management Of The Companies Established By Local Self-Government Units On The Example Of The Republic Of Serbia," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 22-28, August.
    2. Yu, Li & Orazem, Peter F. & Jolly, Robert W., 2014. "Entrepreneurship over the business cycle," Economics Letters, Elsevier, vol. 122(2), pages 105-110.
    3. Fritsch, Michael & Kritikos, Alexander S. & Pijnenburg, Katharina, 2013. "Business Cycles, Unemployment and Entrepreneurial Entry: Evidence from Germany," IZA Discussion Papers 7852, Institute of Labor Economics (IZA).
    4. Román, Concepción & Congregado, Emilio & Millán, José María, 2013. "Start-up incentives: Entrepreneurship policy or active labour market programme?," Journal of Business Venturing, Elsevier, vol. 28(1), pages 151-175.
    5. Millán, José María & Congregado, Emilio & Román, Concepción, 2014. "Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 83-106.
    6. Roy Thurik, 2014. "Entrepreneurship and the business cycle," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-90, October.
    7. Klapper, Leora & Love, Inessa & Randall, Douglas, 2014. "New firm registration and the business cycle," Policy Research Working Paper Series 6775, The World Bank.
    8. Ross Levine & Yona Rubinstein, 2018. "Selection into Entrepreneurship and Self-Employment," NBER Working Papers 25350, National Bureau of Economic Research, Inc.
    9. Lechman, Ewa & Dominiak, Piotr, 2016. "Entrepreneurship vulnerability to business cycle. A new methodology for identification pro-cyclical and counter-cyclical patterns of entrepreneurial activity," MPRA Paper 68793, University Library of Munich, Germany.
    10. Chizheng Miao, 2020. "Immigrant self‐employment and local unemployment in Sweden," Manchester School, University of Manchester, vol. 88(3), pages 464-488, June.
    11. KAYA Halil Dincer, 2019. "The Impact Of The 2008-2009 Global Crisis On Entrepreneurial Aspirations And Attitudes," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 14(1), pages 111-126, April.
    12. Sotirakopoulos, Panagiotis & Mount, Matthew P. & Guven, Cahit & Ulker, Aydogan & Graham, Carol, 2023. "A tale of two life stages: The imprinting effect of macroeconomic contractions on later life entrepreneurship," Journal of Business Venturing, Elsevier, vol. 38(4).
    13. Paul A. Coomes & Jose Fernandez & Stephan F. Gohmann, 2013. "The Rate of Proprietorship Among Metropolitan Areas: The Impact of the Local Economic Environment and Capital Resources," Entrepreneurship Theory and Practice, , vol. 37(4), pages 745-770, July.
    14. Helena Svaleryd, 2015. "Self-employment and the local business cycle," Small Business Economics, Springer, vol. 44(1), pages 55-70, January.
    15. Robert W. Fairlie & Frank M. Fossen, 2018. "Opportunity versus Necessity Entrepreneurship: Two Components of Business Creation," SOEPpapers on Multidisciplinary Panel Data Research 959, DIW Berlin, The German Socio-Economic Panel (SOEP).
    16. Bartz, Wiebke & Winkler, Adalbert, 2016. "Flexible or fragile? The growth performance of small and young businesses during the global financial crisis — Evidence from Germany," Journal of Business Venturing, Elsevier, vol. 31(2), pages 196-215.
    17. Amelie F. Constant & Klaus F. Zimmermann, 2014. "Self-employment against employment or unemployment: Markov transitions across the business cycle," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 51-87, June.
    18. repec:ces:ifodic:v:14:y:2016:i:3:p:19255696 is not listed on IDEAS
    19. Hundt Christian & Sternberg Rolf, 2014. "How Did the Economic Crisis Influence New Firm Creation?: A Multilevel Approach Based Upon Data from German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(6), pages 722-756, December.
    20. Vera Rocha & Anabela Carneiro & Celeste Varum, 2015. "Entry and exit dynamics of nascent business owners," Small Business Economics, Springer, vol. 45(1), pages 63-84, June.
    21. Michael Fritsch & Alexander S. Kritikos, 2016. "Entrepreneurship and the Business Cycle," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(3), pages 24-28, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2021:v:4:p:12-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.