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The Entrepreneurial Ladder and its Determinants

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Author Info
Peter van der Zwan () (CASBEC, Erasmus School of Economics, Erasmus Universiteit Rotterdam, and EIM, Zoetermeer)
Roy Thurik () (CASBEC, Erasmus School of Economics, Erasmus Universiteit Rotterdam, EIM Zoetermeer, Max Planck Institute of Economics, and Vrije Universiteit Amsterdam)
Isabel Grilo () (DG Enterprise, European Commission, GREMARS, Université de Lille 3, and CORE, Université Cath. de Louvain)

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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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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 06-103/3.

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Date of creation: 22 Nov 2006
Date of revision: 14 Nov 2007
Handle: RePEc:dgr:uvatin:20060103

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Web page: http://www.tinbergen.nl/

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Related research
Keywords: entrepreneurship determinants nascent entrepreneurship ordered multinomial logit Europe

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Find related papers by JEL classification:
H10 - Public Economics - - Structure and Scope of Government - - - General
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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  1. Roy Thurik & Isabel Grilo, 2005. "Determinants of entrepreneurial engagement levels in Europe and the US," Discussion Papers on Entrepreneurship, Growth and Public Policy 2005-25, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
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  2. Isabel Grilo & Roy Thurik, 2005. "Entrepreneurial engagement levels in the European Union," Discussion Papers on Entrepreneurship, Growth and Public Policy 2005-29, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
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  3. Roy Thurik & Isabel Grilo, 2005. "Latent and actual entrepreneurship in Europe and the US: some recent developments," Discussion Papers on Entrepreneurship, Growth and Public Policy 2005-24, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
    Other versions:
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