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Modelling Entrepreneurship: Unifying the Equilibrium and Entry/Exit Approach

Author

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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.

Suggested Citation

  • Gerrit de Wit & Niels Bosma & Martin Carree, 2003. "Modelling Entrepreneurship: Unifying the Equilibrium and Entry/Exit Approach," Scales Research Reports H200305, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h200305
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    Cited by:

    1. Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth – Past experiences, current knowledge and policy implications," Working Papers 2010:2, Swedish Entrepreneurship Forum.
    2. André van Stel & Andrew Burke, 2008. "The Entrepreneurial Adjustment Process in Disequilibrium," Scales Research Reports H200809, EIM Business and Policy Research.
    3. Thomas Gries & Wim Naudé, 2008. "Entrepreneurship and Regional Economic Growth: Towards A General Theory of Start-Ups," WIDER Working Paper Series RP2008-70, World Institute for Development Economic Research (UNU-WIDER).
    4. Thomas Gries & Wim Naudé, 2009. "When to Start a New Firm?: Modelling the Timing of Novice and Serial Entrepreneurs," WIDER Working Paper Series RP2009-39, World Institute for Development Economic Research (UNU-WIDER).
    5. 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 University Rotterdam.
    6. Wentao Gu & Xuzheng Qian & Junpeng Lu, 2018. "Venture capital and entrepreneurship: a conceptual model and research suggestions," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 35-50, March.
    7. 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.
    8. Jacob Hörisch & Jana Kollat & Steven A. Brieger, 2017. "What influences environmental entrepreneurship? A multilevel analysis of the determinants of entrepreneurs’ environmental orientation," Small Business Economics, Springer, vol. 48(1), pages 47-69, January.
    9. 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.
    10. Wim Naudé, 2008. "Entrepreneurship in Economic Development," WIDER Working Paper Series RP2008-20, World Institute for Development Economic Research (UNU-WIDER).
    11. Jacqueline Chattopadhyay, 2018. "State Health Insurance Regulation and Self-Employment Rates After the Great Recession: The Role of Guaranteed Issue Mandates," Economic Development Quarterly, , vol. 32(1), pages 78-92, February.

    More about this item

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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