Linking Business Ownership and Perceived Administrative Complexity: An Empirical Analysis of 18 OECD Countries
Abstract
Administrative burdens are known to be a major business constraint for incumbent SMEs in modern economies. Far less is known about the influence of these burdens on the startup of new firms. The current paper examines to what extent perceived administrative complexity related to starting a new business influences the number of business owners across 18 OECD countries. We test this relationship combining data on business ownership from EIM's COMPENDIA data base and data on perceived administrative complexity from the Eurobarometer public opinion surveys coordinated by the European Commission. Our regression model enables to explicitly control for the influence of unemployment on the level of business ownership ('refugee effect'). We also control for risk tolerance and access to finance. Our results suggest that perceived administrative complexity has a negative impact on the level of business ownership. However, the effect is not immediate but rather seems to emerge in the long run.Download Info
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Paper provided by Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group in its series Papers on Entrepreneurship, Growth and Public Policy with number 2004-35.Length: 17 pages
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:esi:egpdis:2004-35
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Related research
Keywords: business ownership; administrative burdens; unemployment;Other versions of this item:
- André van Stel & Viktor Stunnenberg, 2004. "Linking Business Ownership and Perceived Administrative Complexity: An Empirical Analysis of 18 OECD Countries," Scales Research Reports N200409, EIM Business and Policy Research.
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-07-18 (All new papers)
- NEP-EEC-2004-07-18 (European Economics)
- NEP-ENT-2004-07-18 (Entrepreneurship)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Michael Fritsch & Pamela Mueller, 2005.
"The Persistence of Regional New Business Formation-Activity over Time – Assessing the Potential of Policy Promotion Programs,"
ERSA conference papers
ersa05p706, European Regional Science Association.
- Michael Fritsch & Pamela Mueller, 2007. "The persistence of regional new business formation-activity over time – assessing the potential of policy promotion programs," Journal of Evolutionary Economics, Springer, vol. 17(3), pages 299-315, June.
- Michael Fritsch & Pamela Mueller, 2005. "The Persistence of Regional New Business Formation-Activity over Time - Assessing the Potential of Policy Promotion Programs," Papers on Entrepreneurship, Growth and Public Policy 2005-02, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Fritsch, Michael & Mueller, Pamela, 2005. "The persistence of regional new business formation-activity over time: assessing the potential of policy promotion programs," Freiberg Working Papers 2005,01, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- 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.
- Roy Thurik & Isabel Grilo, 2005. "Latent and actual entrepreneurship in Europe and the US: some recent developments," Papers on Entrepreneurship, Growth and Public Policy 2005-24, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Roy Thurik & Isabel Grilo, 2006.
"Entrepreneurial engagement levels in the European Union,"
Scales Research Reports
N200515, EIM Business and Policy Research.
- Isabel Grilo & Roy Thurik, 2005. "Entrepreneurial engagement levels in the European Union," Papers on Entrepreneurship, Growth and Public Policy 2005-29, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Bremmers, Harry J. & Poppe, Krijn J. & Wijnands, Jo H.M. & van der Meulen, Bernd M.J., 2008. "Administrative Burdens in the Dairy Industry – A Proposal for Empirical Research," 110th Seminar, February 18-22, 2008, Innsbruck-Igls, Austria 49886, European Association of Agricultural Economists.
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