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Entrepreneurship in the EU: To Wish and not to be

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  • Isabel Grilo

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  • Jesus-Maria Irigoyen
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    Abstract

    The entrepreneurial capacity in an economy is a key determinant of economic growth and productivity improvements. This paper uses survey data from the 15 EU Member States and the US to investigate two aspects of entrepreneurial capacity: latent and actual entrepreneurship. Latent entrepreneurship is measured by the probability of a declared preference for self-employment over employment. Other than demographic variables such as gender, age and education level, the set of explanatory variables used includes country specific effects, the perception by respondents of administrative complexities and of availability of financial support and a rough measure of risk tolerance. The most striking result is the lack of explanatory power of the perception of lack of available financial support in the latent entrepreneurship equation. Copyright Springer 2006

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    File URL: http://hdl.handle.net/10.1007/s11187-005-1561-3
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    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 26 (2006)
    Issue (Month): 4 (05)
    Pages: 305-318

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    Handle: RePEc:kap:sbusec:v:26:y:2006:i:4:p:305-318

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    Web page: http://www.springerlink.com/link.asp?id=100338

    Related research

    Keywords: access to finance; administrative complexities; entrepreneurship; probit regression; risk attitudes; self-employment; J23; M13; R12;

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    References

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    1. Roy Thurik & Isabel Grilo, 2005. "Determinants of entrepreneurial engagement levels in Europe and the US," Papers on Entrepreneurship, Growth and Public Policy 2005-25, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    2. Andre van Stel & David Storey & Roy Thurik & Sander Wennekers, 2005. "From nascent to actual entrepreneurship: the effect of entry barriers," Papers on Entrepreneurship, Growth and Public Policy 2005-35, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    3. Roy Thurik & Isabel Grilo, 2006. "Latent and actual entrepreneurship in Europe and the US: some recent developments," Scales Research Reports N200514, EIM Business and Policy Research.
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