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The Determinants of Latent Entrepreneurship in Japan

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  • Tatsuyoshi Masuda

Abstract

This paper examines regional characteristics affecting the latent entrepreneurship in Japan, focusing on regional macroeconomic indicators, existing density of establishments and human capital, and business start-up assistance programs by local governments. We define two types of people having the latent entrepreneurship as follows (1) persons merely wishing to be a self-employed worker, and (2) persons preparing to be a self-employed worker out of the former definition. Total cash earnings and the unemployment rate, which are the macro economic indicators, had positive effects on latent entrepreneurship in Japan. Judging from the significance of their estimations, the latent entrepreneurship is explained by the “Push hypothesis”. If we examine the problem more closely, it is necessary for us to identify government assistance programs which make the latent entrepreneurs more self-employment. Copyright Springer 2006

Suggested Citation

  • Tatsuyoshi Masuda, 2006. "The Determinants of Latent Entrepreneurship in Japan," Small Business Economics, Springer, vol. 26(3), pages 227-240, April.
    • Handle: RePEc:kap:sbusec:v:26:y:2006:i:3:p:227-240
    DOI: 10.1007/s11187-005-0206-x
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    Keywords

    Business startup assistance; entrepreneurship; gender; Japan; latant entrepreneurship; M13;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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