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Evolution of Entrepreneurship in Japan: Analysis of its Changing Sub-system

In: The Entrepreneur in Rule-Based Economics

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  • Georg D. Blind

    (University of Zurich)

Abstract

We document results of hypothesis testing for the determinants of entrepreneurial attitudes, as well as for latent and actual entrepreneurship in Japan from 1992 to 2012. For entrepreneurial attitudes we find both, the rule of Business Sentiment in the self-employed subgroup and the rule Fear of Unemployment in the dependently employed subgroup since 1998, with significant negative influence. We further identify a significant impact of smaller families via the 2nd order social rule of Filial Piety as well as a negative influence of Perceived Cost of Capital (nominal interest rates). For latent entrepreneurship we evidence a push hypothesis for two subgroups: dependently employed (via business sentiment) and economically inactive (via the job-to-applicant ratio). The same finding also holds for actual entrepreneurship in the dependently employed subgroup. Filial Piety again has a negative impact on latent and actual entrepreneurship in both subgroups as evidenced from a significant negative impact of cohabitation ratios. These results are robust even after controlling for urban–rural differences and labour market structure.

Suggested Citation

  • Georg D. Blind, 2017. "Evolution of Entrepreneurship in Japan: Analysis of its Changing Sub-system," Economic Complexity and Evolution, in: The Entrepreneur in Rule-Based Economics, chapter 0, pages 131-145, Springer.
    • Handle: RePEc:spr:eccchp:978-3-319-62779-3_12
    DOI: 10.1007/978-3-319-62779-3_12
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