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Determinants of entrepreneurship in Europe

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Author Info
Isabel Grilo
Roy Thurik ()

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Abstract

This paper presents an Eclectic Framework explaining (developments in and determinants of) entrepreneurship incorporating different streams of literature and spanning different disciplines. The Eclectic Framework integrates factors shaping the demand for entrepreneurship on the one hand, with those influencing the supply of entrepreneurs on the other hand. It also creates insight into the role of public policy identifying the channels through which the demand or the supply of entrepreneurship can be shifted. In its empirical part the present paper estimates a multinomial logit using survey data from the 15 EU member states, Norway, Iceland, Liechtenstein and the US to establish the effect of demographic and other variables on various entrepreneurial engagement levels. Other than demographic variables, the set of explanatory variables used includes the perception by respondents of administrative complexities, of availability of financial support, a rough measure of risk tolerance, the respondents' preference for self -employment and country specific effects. The most striking result is that the perception of lack of financial support has no discriminative effect across the various levels of entrepreneurial engagement.

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Paper provided by Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy in its series Discussion Papers on Entrepreneurship, Growth and Public Policy with number 2004-30.

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Length: 24 pages
Date of creation: Jul 2004
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Handle: RePEc:esi:egpdis:2004-30

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Related research
Keywords: entrepreneurship determinants nascent entrepreneurship multinomial logit barriers to entry

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Find related papers by JEL classification:
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
H10 - Public Economics - - Structure and Scope of Government - - - General
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Leitão, João & Ferreira, João, 2007. "Liberalization of European Telecommunications and Entrepreneurship: Why German and Portuguese Experiences are so Equal and so Different?," MPRA Paper 5728, University Library of Munich, Germany. [Downloadable!]
  2. Joost van Acht & Joop Stam & Roy Thurik & Ingrid Verheul, 2004. "Business Ownership and Unemployment in Japan," Discussion Papers on Entrepreneurship, Growth and Public Policy 2004-09, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
    Other versions:
  3. Martin Carree & André van Stel & Roy Thurik & Sander Wennekers, 2007. "The Relation between Economic Development and Business Ownership revisited," Tinbergen Institute Discussion Papers 07-022/3, Tinbergen Institute. [Downloadable!]
  4. Bowen, Harry P. & De Clercq, D., 2005. "National institutions and the allocation of entrepreneurial effort," Vlerick Leuven Gent Management School Working Paper Series 2005-15, Vlerick Leuven Gent Management School. [Downloadable!]
  5. Niels Noorderhaven & André van Stel & Roy Thurik & Sander Wennekers, 2005. "Uncertainty Avoidance and the Rate of Business Ownership across 22 OECD Countries, 1976-2000," Discussion Papers on Entrepreneurship, Growth and Public Policy 2005-15, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
    Other versions:
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