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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, Universit� de Lille 3, and CORE, Universit� Cath. de Louvain)

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. This discussion paper has resulted in a publication in 'Applied Economics' : vol. 42, iss. 17, pp. 2183-91.

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Bibliographic 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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Keywords: entrepreneurship; determinants; nascent entrepreneurship; ordered multinomial logit; Europe;

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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. Kim, Ji-Hyun, 2003. "Assessing practical significance of the proportional odds assumption," Statistics & Probability Letters, Elsevier, vol. 65(3), pages 233-239, November.
  3. Parker,Simon C., 2004. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521828130.
  4. Roy Thurik & Isabel Grilo, 2006. "Entrepreneurial engagement levels in the European Union," Scales Research Reports N200515, EIM Business and Policy Research.
  5. 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.
  6. Davidsson, Per, 2006. "Nascent Entrepreneurship: Empirical Studies and Developments," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 2(1), pages 1-76, June.
  7. Isabel Grilo & Jesus-Maria Irigoyen, 2006. "Entrepreneurship in the EU: To Wish and not to be," Small Business Economics, Springer, vol. 26(4), pages 305-318, 05.
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