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The entrepreneurial ladder and its determinants

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Author Info

  • Peter van der Zwan
  • Roy Thurik
  • Isabel Grilo

Abstract

We test a new model where the entrepreneurial decision is described as a process of successive engagement levels, i.e. as an entrepreneurial ladder. Five levels are distinguished using nearly 12 000 observations from the 2004 'Flash Eurobarometer survey on Entrepreneurship' covering the 25 European Union member states and the United States. The most surprising of the many results is that perception of lack of financial support is no obstacle for moving to a higher entrepreneurial engagement level whereas perceived administrative complexity is a significant obstacle. We also show that the effect of age on the probability of moving forward in the entrepreneurial process becomes negative after a certain age implying that if entrepreneurial engagements are not taken early enough in life they may well never be taken.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 42 (2010)
Issue (Month): 17 ()
Pages: 2183-2191

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Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2183-2191

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  1. Roy Thurik & Isabel Grilo, 2006. "Entrepreneurial engagement levels in the European Union," Scales Research Reports N200515, EIM Business and Policy Research.
  2. Parker,Simon C., 2004. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521828130, October.
  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.
  4. 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.
  5. Davidsson, Per, 2006. "Nascent Entrepreneurship: Empirical Studies and Developments," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 2(1), pages 1-76, June.
  6. Kim, Ji-Hyun, 2003. "Assessing practical significance of the proportional odds assumption," Statistics & Probability Letters, Elsevier, vol. 65(3), pages 233-239, November.
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