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Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy

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  • Millán, José María
  • Congregado, Emilio
  • Román, Concepción

Abstract

By considering entrepreneurs who hire employees – employers – and entrepreneurs without personnel – own-account workers – as related but distinct groups within entrepreneurship, this work analyzes the roles of different factors in entrepreneurship survival in Europe from a new perspective: contrasting the determinants of own-account workers’ survival with those affecting employers’ survival in the EU-15. Our results confirm the presence of persistence in entrepreneurship. However, we also obtain a strong negative effect on survival of entering entrepreneurship from unemployment. Hence, policymakers should balance these mixed results to evaluate the medium- and long-term suitability of the existing entrepreneurial promotion policy across European regions.

Suggested Citation

  • Millán, José María & Congregado, Emilio & Román, Concepción, 2014. "Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 83-106.
    • Handle: RePEc:eee:jpolmo:v:36:y:2014:i:1:p:83-106
    DOI: 10.1016/j.jpolmod.2013.10.001
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    Cited by:

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    2. Porras, María Sylvina & Martín-Román, Ángel L., 2017. "Self-employment and Okun’s Law relationship: the Spanish case," GLO Discussion Paper Series 157, Global Labor Organization (GLO).
    3. Porras-Arena, M. Sylvina & Martín-Román, Ángel L., 2019. "Self-employment and the Okun's law," Economic Modelling, Elsevier, vol. 77(C), pages 253-265.
    4. Lechmann, Daniel S. J. & Wunder, Christoph, 2016. "The dynamics of solo self-employment: Persistence and transition to employership," Discussion Papers 98, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    5. Millán, Ana & Millán, José María & Román, Concepción & van Stel, André, 2013. "How does employment protection legislation influence hiring and firing decisions by the smallest firms?," Economics Letters, Elsevier, vol. 121(3), pages 444-448.
    6. Burke, Andrew & Millán, José María & Román, Concepción & van Stel, André, 2018. "Exploring the impact of different types of prior entrepreneurial experience on employer firm performance," Journal of Business Research, Elsevier, vol. 90(C), pages 107-122.
    7. repec:cii:cepiei:2014-q2-138-2 is not listed on IDEAS
    8. Ignacio Moral-Arce & Javier Martín-Román & Ángel L. Martín-Román, 2019. "Cessation of Activity Benefit for Spanish Self-employed Workers: A Heterogeneous Impact Evaluation," Hacienda Pública Española / Review of Public Economics, IEF, vol. 231(4), pages 41-79, December.
    9. André Stel & José Millán & Concepción Román, 2014. "Investigating the impact of the technological environment on survival chances of employer entrepreneurs," Small Business Economics, Springer, vol. 43(4), pages 839-855, December.
    10. Andrew Burke & Serhiy Lyalkov & Ana Millán & José María Millán & André Stel, 2021. "How do country R&D change the allocation of self-employment across different types?," Small Business Economics, Springer, vol. 56(2), pages 695-721, February.
    11. Pompei, Fabrizio & Selezneva, Ekaterina, 2021. "Unemployment and education mismatch in the EU before and after the financial crisis," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 448-473.
    12. Cowling, Michael Leith & Wooden, Mark, 2021. "Does solo self-employment serve as a ‘stepping stone’ to employership?," Labour Economics, Elsevier, vol. 68(C).
    13. Caliendo, Marco & Künn, Steffen & Weissenberger, Martin, 2020. "Catching up or lagging behind? The long-term business and innovation potential of subsidized start-ups out of unemployment," Research Policy, Elsevier, vol. 49(10).
    14. Daniel S. J. Lechmann & Christoph Wunder, 2017. "The Dynamics of Solo Self-Employment: Persistence and Transition to Employership," SOEPpapers on Multidisciplinary Panel Data Research 932, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Bennett, Sara E., 2020. "The dynamics among entrepreneurship, innovation, and economic growth in the Eurozone countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 1106-1122.
    16. Daniela Ionita & Ionel Dumitru & Mihaela Constantinescu & Stefan Caescu, 2015. "Entrereneurial Clusters in European Union. A Macroeconomic Comparative Analysis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 1-93, February.
    17. Lasierra, Jose Manuel, 2018. "Self-Employment and the Economic Cycle in Spain," MPRA Paper 89593, University Library of Munich, Germany.
    18. Zemtsov, S. & Tsareva, Y., 2018. "Entrepreneurial Activity in the Russian Regions: How Spatial and Temporal Effects Determine the Development of Small Business," Journal of the New Economic Association, New Economic Association, vol. 37(1), pages 145-165.

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    More about this item

    Keywords

    Entrepreneurship; Own-account workers; Employers; Business cycle; Persistence;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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