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Entrepreneurship at Country Level : Economic and Non-Economic Determinants

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  • Sander Wennekers
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    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'.

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    File URL: http://www.entrepreneurship-sme.eu/pdf-ez/R200602.pdf
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    Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number R200602.

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    Length: 235 pages
    Date of creation: 15 Sep 2006
    Date of revision:
    Handle: RePEc:eim:papers:r200602
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    Web page: http://www.entrepreneurship-sme.eu/Email:


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    1. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
    2. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
    3. 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 630-40, June.
    4. 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 641-52, June.
    5. de Wit, Gerrit, 1993. " Models of Self-Employment in a Competitive Market," Journal of Economic Surveys, Wiley Blackwell, vol. 7(4), pages 367-97, December.
    6. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
    7. 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.
    8. Zoltan Acs & David Storey, 2004. "Introduction: Entrepreneurship and Economic Development," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 871-877.
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    Cited by:

    1. Roy Thurik & Andreas Freytag, 2006. "Entrepreneurship and its determinants in a cross-country setting," Scales Research Reports H200616, EIM Business and Policy Research.
    2. Philipp Koellinger, 2008. "Why are some entrepreneurs more innovative than others?," Small Business Economics, Springer, vol. 31(1), pages 21-37, June.
    3. 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.
    4. Jolanda Hessels, 2008. "International Entrepreneurship: An Introduction, Framework and Research Agenda," Scales Research Reports H200823, EIM Business and Policy Research.
    5. Nijkamp, Peter & van Hemert, Patricia, 2007. "Going for Growth; a Theoretical and Policy Framework," Papers DYNREG14, Economic and Social Research Institute (ESRI).
    6. repec:dgr:uvatin:2007022 is not listed on IDEAS
    7. André van Stel & Roy Thurik & Sander Wennekers & Martin Carree, 2010. "The relationship between entrepreneurship and economic development: is it U-shaped?," Scales Research Reports H200824, EIM Business and Policy Research.
    8. Heike Delfmann, 2012. "Population change and new firm formation in urban and rural regions," ERSA conference papers ersa12p466, European Regional Science Association.
    9. Jeroen de Jong & Sander Wennekers, 2008. "Intrapreneurship; Conceptualizing entrepreneurial employee behaviour," Scales Research Reports H200802, EIM Business and Policy Research.
    10. Sander Wennekers & Jolanda Hessels & Chantal Hartog, 2009. "Global Entrepreneurship Monitor 2008 The Netherlands," Scales Research Reports A200914, EIM Business and Policy Research.
    11. repec:dgr:uvatin:20070022 is not listed on IDEAS
    12. Roy Thurik & Marcus Dejardin, 2012. "Entrepreneurship and Culture," Post-Print halshs-00943684, HAL.
    13. 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, Asociación Española de Ciencia Regional, issue 26, pages 47-74.
    14. Stenholm, Pekka & Acs, Zoltan J. & Wuebker, Robert, 2013. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Journal of Business Venturing, Elsevier, vol. 28(1), pages 176-193.
    15. André Stel & Sander Wennekers & Gerard Scholman, 2014. "Solo self-employed versus employer entrepreneurs: determinants and macro-economic effects in OECD countries," PharmacoEconomics, Springer, vol. 4(1), pages 107-136, June.
    16. repec:dgr:uvatin:2009105 is not listed on IDEAS

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