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Modelling Entrepreneurship: Unifying the Equilibrium and Entry/Exit Approach

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  • Gerrit de Wit
  • Niels Bosma
  • Martin Carree

Abstract

This research report provides a framework for modelling rates of entrepreneurship. The proposed framework may be helpful in separating the effects of a range of different variables, all possibly affecting the rate to which people choose to become or remain self-employed. We unify two approaches with respect to the modelling of the rates of entrepreneurship. The first approach is the 'equilibrium approach', seeking to estimate the long and short-run developments of the number of self-employed. The second approach is the entry/exit approach, seeking to determine the determinants of gross entry and exit rates and their interdependencies. The empirical application to Dutch data indicates how the method works and what sorts of results may be expected.

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File URL: http://www.entrepreneurship-sme.eu/pdf-ez/H200305.pdf
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Bibliographic Info

Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200305.

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Length: 20 pages
Date of creation: 11 Sep 2003
Date of revision:
Handle: RePEc:eim:papers:h200305

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Cited by:
  1. André van Stel & Roy Thurik & Andrew Burke, 2008. "Investigating Blue Ocean v. Competitive Strategy: A Statistical Analysis of the Retail Industry," Scales Research Reports H200801, EIM Business and Policy Research.
  2. Andrew Burke & Andr� van Stel, 2009. "The Entrepreneurial Adjustment Process in Disequilibrium," Tinbergen Institute Discussion Papers 09-005/3, Tinbergen Institute.
  3. Burke, A.E. & van Stel, A.J. & Thurik, A.R., 2009. "Blue Ocean versus Competitive Strategy: Theory and Evidence," ERIM Report Series Research in Management ERS-2009-030-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
  4. Katharina Pijnenburg, 2013. "Self-Employment and Economic Performance: A Geographically Weighted Regression Approach for European Regions," Discussion Papers of DIW Berlin 1272, DIW Berlin, German Institute for Economic Research.
  5. Gries, Thomas & Naude, Wim, 2009. "When to Start a New Firm?: Modelling the Timing of Novice and Serial Entrepreneurs," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. Gries, Thomas & Naude, Wim, 2008. "Entrepreneurship and Regional Economic Growth: Towards A General Theory of Start-Ups," Working Paper Series RP2008/70, World Institute for Development Economic Research (UNU-WIDER).
  7. Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth – Past experiences, current knowledge and policy implications," Working Papers 2010:2, Swedish Entrepreneurship Forum.
  8. André van Stel & Andrew Burke, 2008. "The Entrepreneurial Adjustment Process in Disequilibrium," Scales Research Reports H200809, EIM Business and Policy Research.
  9. Naude, Wim, 2008. "Entrepreneurship in Economic Development," Working Paper Series RP2008/20, World Institute for Development Economic Research (UNU-WIDER).

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