From nascent to actual entrepreneurship: the effect of entry barriers

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From nascent to actual entrepreneurship: the effect of entry barriers

Author Info

Andre van Stel
David Storey
Roy Thurik ()
Sander Wennekers

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Abstract

This exploratory study focuses on the conversion from nascent to actual entrepreneurship and the role of entry barriers in this process. Using data for a sample of countries partici-pating in the Global Entrepreneurship Monitor between 2002 and 2004, we estimate a two-equation model explaining the nascent entrepreneurship rate and the young business entre-preneurship rate, while taking into account the interrelationship between the two variables (i.e. the conversion). Furthermore various determinants of entrepreneurship reflecting the demand and supply side of entrepreneurship as well as government intervention are incor-porated in the model. We find evidence for a strong conversion effect from nascent to ac-tual entrepreneurship. We also find positive effects on entrepreneurial activity rates of la-bour flexibility and tertiary enrollment and a negative effect of social security expenditure. Concerning the effect of entry regulations we find mixed results. Using one set of entry regulation measures we find no effects whereas using data from a second source we find a weak negative effect of more burdensome entry regulations on the rate of entrepreneurship.

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Publisher Info
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 2005-35.

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Length: 26 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:esi:egpdis:2005-35

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Paper
- André van Stel & Roy Thurik & Sander Wennekers & David Storey, 2006. "From nascent to actual entrepreneurship: the effect of entry barriers," Scales Research Reports N200508, EIM Business and Policy Research. [Downloadable!]

Find related papers by JEL classification:
H10 - Public Economics - - Structure and Scope of Government - - - General
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-12-14 (All new papers)
NEP-BEC-2005-12-14 (Business Economics)
NEP-COM-2005-12-14 (Industrial Competition)
NEP-ENT-2005-12-14 (Entrepreneurship)
NEP-INO-2005-12-14 (Innovation)
NEP-TID-2005-12-14 (Technology & Industrial Dynamics)

References listed on IDEAS
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.:

Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, vol. 45(4-6), pages 680-691, May. [Downloadable!] (restricted)
Marco Gelderen & Roy Thurik & Niels Bosma, 2005. "Success and Risk Factors in the Pre-Startup Phase," Small Business Economics, Springer, vol. 24(4), pages 365-380, 05. [Downloadable!] (restricted)
Other versions:
- Marco van Gelderen & Niels Bosma & Roy Thurik, 2003. "Success and risk factors in the pre-startup phase," Scales Research Reports N200314, EIM Business and Policy Research. [Downloadable!]
- Marco Gelderen & Roy Thurik & Niels Bosma, 2006. "Success and Risk Factors in the Pre-Startup Phase," Small Business Economics, Springer, vol. 26(4), pages 319-335, 05. [Downloadable!] (restricted)
Ingrid Verheul & Sander Wennekers & David Audretsch & Roy Thurik, 2001. "An Eclectic Theory of Entrepreneurship: Policies, Institutions and Culture," Tinbergen Institute Discussion Papers 01-030/3, Tinbergen Institute. [Downloadable!]
Other versions:
- Roy Thurik & Sander Wennekers & Ingrid Verheul & David Audretsch, 2001. "An eclectic theory of entrepreneurship: policies, institutions and culture," Scales Research Reports H200012, EIM Business and Policy Research. [Downloadable!]
Simeon Djankov & Rafael La Porta & Florencio Lopez-De-Silanes & Andrei Shleifer, 2002. "The Regulation Of Entry," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 1-37, February. [Downloadable!] (restricted)
Other versions:
- Simeon Djankov & Rafael La Porta & Florencio LopezdeSilanes & Andrei Shleifer, 2000. "The Regulation of Entry," NBER Working Papers 7892, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andre Shleifer, 2000. "The Regulation of Entry," Harvard Institute of Economic Research Working Papers 1904, Harvard - Institute of Economic Research. [Downloadable!]
- Djankov, Simeon & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2001. "The Regulation of Entry," Working Paper Series rwp01-015, Harvard University, John F. Kennedy School of Government. [Downloadable!]
- Djankov, Simeon & La Porta, Rafael & Shleifer, Andrei & Lopez de Silanes, Florencio, 2001. "The regulation of entry," Policy Research Working Paper Series 2661, The World Bank. [Downloadable!]
- Djankov, Simeon & La Porta, Rafael & López-de-Silanes, Florencio & Shleifer, Andrei, 2001. "The Regulation of Entry," CEPR Discussion Papers 2953, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Sander Wennekers & André van Wennekers & Roy Thurik & Paul Reynolds, 2005. "Nascent Entrepreneurship and the Level of Economic Development," Small Business Economics, Springer, vol. 24(3), pages 293-309, 04. [Downloadable!] (restricted)
Other versions:
- Sander Wennekers & André van Stel & Roy Thurik & Paul Reynolds, 2005. "Nascent entrepreneurship and the level of economic development," Papers on Entrepreneurship, Growth and Public Policy 2005-14, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
- Sander Wennekers & André Stel & Roy Thurik & Paul Reynolds, 2008. "Nascent entrepreneurship and the level of economic development," Small Business Economics, Springer, vol. 30(3), pages 325-325, March. [Downloadable!] (restricted)

Full references

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.)

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. [Downloadable!] (restricted)
Isabel Grilo & Jesus Maria Irigoyen, 2005. "Entrepreneurship in the EU: to wish and not to be," Papers on Entrepreneurship, Growth and Public Policy 2005-01, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
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. [Downloadable!]
Other versions:
- 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. [Downloadable!]

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