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Entrepreneurship at Country Level : Economic and Non-Economic Determinants

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  • Sander Wennekers

Abstract

This book investigates the rate of occupational entrepreneurship at country level, either measured by the number of business owners as a percentage of the labor force, or by some metric of the dynamics of entrepreneurship such as 'nascent entrepreneurship' and new business start-ups. Historical case studies set the stage for a multidisciplinary framework for explaining the rate of entrepreneurship. Based upon several strands of literature, this framework is built around an occupational choice model while linking the individual, the firm and the aggregate level. Technological, economic, demographic, cultural and institutional factors act as entrepreneurial framework conditions. In addition, feedback mechanisms are elaborated. Empirical investigations carried out against the background of this framework show that dissatisfaction, uncertainty avoidance and social security entitlements affect the rate of entrepreneurship. In addition, either a negative or a U-shaped influence of the level of economic development is found, while dummy variables for recent decades suggest a positive impact of global trends such as the ICT revolution, deregulation and the onset of a 'network economy'.

Suggested Citation

  • Sander Wennekers, 2006. "Entrepreneurship at Country Level : Economic and Non-Economic Determinants," Scales Research Reports R200602, EIM Business and Policy Research.
  • Handle: RePEc:eim:papers:r200602
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    File URL: http://www.entrepreneurship-sme.eu/pdf-ez/R200602.pdf
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    References listed on IDEAS

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    1. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    2. de Wit, Gerrit, 1993. " Models of Self-Employment in a Competitive Market," Journal of Economic Surveys, Wiley Blackwell, vol. 7(4), pages 367-397, December.
    3. Zoltan Acs & David Storey, 2004. "Introduction: Entrepreneurship and Economic Development," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 871-877.
    4. Yamada, Gustavo, 1996. "Urban Informal Employment and Self-Employment in Developing Countries: Theory and Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 44(2), pages 289-314, January.
    5. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    6. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
    7. Audretsch, David B & Stephan, Paula E, 1996. "Company-Scientist Locational Links: The Case of Biotechnology," American Economic Review, American Economic Association, vol. 86(3), pages 641-652, June.
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    Citations

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    Cited by:

    1. André van Stel & David Storey & Chantal Hartog, 2010. "Institutions and Entrepreneurship: The Role of The Rule of Law," Scales Research Reports H201003, EIM Business and Policy Research.
    2. 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.
    3. Philipp Koellinger, 2008. "Why are some entrepreneurs more innovative than others?," Small Business Economics, Springer, vol. 31(1), pages 21-37, June.
    4. Roy Thurik & Marcus Dejardin, 2012. "Entrepreneurship and Culture," Post-Print halshs-00943684, HAL.
    5. Wennekers, Sander & van Stel, André & Carree, Martin & Thurik, Roy, 2010. "The Relationship between Entrepreneurship and Economic Development: Is It U-Shaped?," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 6(3), pages 167-237, July.
    6. Andreas Freytag & Roy Thurik, 2007. "Entrepreneurship and its determinants in a cross-country setting," Journal of Evolutionary Economics, Springer, vol. 17(2), pages 117-131, April.
    7. Sander Wennekers & Jolanda Hessels & Chantal Hartog, 2009. "Global Entrepreneurship Monitor 2008 The Netherlands," Scales Research Reports A200914, EIM Business and Policy Research.
    8. Rahmije Topxhiu, 2012. "The role of entrepreneurship and enterprises for local economic development," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 5, pages 96-107, February.
    9. Aleksandrova, E. & Verkhovskaya, O., 2015. "Institutional determinants of necessity-driven entrepreneurship," Working Papers 6434, Graduate School of Management, St. Petersburg State University.
    10. 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.
    11. Heike Delfmann, 2012. "Population change and new firm formation in urban and rural regions," ERSA conference papers ersa12p466, European Regional Science Association.
    12. Nijkamp, Peter & van Hemert, Patricia, 2007. "Going for Growth; a Theoretical and Policy Framework," Papers DYNREG14, Economic and Social Research Institute (ESRI).
    13. Jeroen de Jong & Sander Wennekers, 2008. "Intrapreneurship; Conceptualizing entrepreneurial employee behaviour," Scales Research Reports H200802, EIM Business and Policy Research.
    14. repec:spr:eurasi:v:4:y:2014:i:1:p:107-136 is not listed on IDEAS
    15. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404 Edward Elgar Publishing.
    16. Khayyat, Nabaz T. & Lee, Jeong-Dong, 2015. "A measure of technological capabilities for developing countries," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 210-223.
    17. Jaros³aw Korpysa, 2012. "Entrepreneurial attitudes of young rural state farm - research results (Postawy przedsiebiorcze mlodziezy wsi popegeerowskiej - wyniki badan)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 10(36), pages 176-193.
    18. Petrik Runst, 2013. "Post-Socialist Culture and Entrepreneurship," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(3), pages 593-626, July.
    19. Coduras , Alicia & Autio, Erkko, 2013. "Comparing subjective and objective indicators to describe the national entrepreneurial context: the Global Entrepreneurship Monitor and the Global Competitiveness Index contributions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 26, pages 47-74.
    20. Jolanda Hessels, 2008. "International Entrepreneurship: An Introduction, Framework and Research Agenda," Scales Research Reports H200823, EIM Business and Policy Research.
    21. repec:spr:pharme:v:4:y:2014:i:1:p:107-136 is not listed on IDEAS
    22. Philipp Koellinger & Christian Roessler, 2009. "Is More Entrepreneurship better?," Tinbergen Institute Discussion Papers 09-105/3, Tinbergen Institute, revised 03 Dec 2009.

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