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Entrepreneurial engagement levels in the European Union

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  • Isabel Grilo
  • Roy Thurik

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Abstract

A multinomial logit model and survey data from the 25 EU member states and the US are used to establish the effect of demographic and other variables on various entrepreneurial engagement levels. These engagement levels range from "never thought about starting a business" to "thinking about it", "taking steps for starting up", "having a young business", "having an older business" and "no longer being an entrepreneur". Data of the 2004 Entrepreneurship Flash Eurobarometer survey containing over 13,500 ob-servations is used. Other than demographic variables such as gender, age, education level and whether par-ents are self-employed, the set of explanatory variables used includes country specific effects, measures of risk tolerance, internal and external locus of control and four perceptions of 'obstacles'. The 'obstacle' vari-ables include the perception by respondents of administrative complexities, of availability of financial sup-port, of accessibility of information for start-up and whether the current economic climate is favorable. Among the four perception variables only administrative complexities displays an unambiguous obstacle profile in that its presence has a significant negative impact on higher entrepreneurial engagement levels. Country effects suggest a clear underperformance of Europe relative to the US in less mature entrepreneu-rial phases.

Suggested Citation

  • Isabel Grilo & Roy Thurik, 2005. "Entrepreneurial engagement levels in the European Union," Papers on Entrepreneurship, Growth and Public Policy 2005-29, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  • Handle: RePEc:esi:egpdis:2005-29
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    References listed on IDEAS

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    Cited by:

    1. Bögenhold, Dieter & Fachinger, Uwe, 2009. "Entrepreneurship, Innovation and Spatial Disparities: Divisions and Changes of Self-employment and Firms," MPRA Paper 19245, University Library of Munich, Germany.
    2. Thurik, A. Roy & Carree, Martin A. & van Stel, André & Audretsch, David B., 2008. "Does self-employment reduce unemployment?," Journal of Business Venturing, Elsevier, vol. 23(6), pages 673-686, November.
    3. 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.
    4. Ingrid Verheul & André Van Stel & Roy Thurik, 2006. "Explaining female and male entrepreneurship at the country level," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 18(2), pages 151-183, March.
    5. Lorraine Uhlaner & Roy Thurik, 2007. "Postmaterialism influencing total entrepreneurial activity across nations," Journal of Evolutionary Economics, Springer, vol. 17(2), pages 161-185, April.
    6. Verheul, Ingrid & Thurik, Roy & Grilo, Isabel & van der Zwan, Peter, 2012. "Explaining preferences and actual involvement in self-employment: Gender and the entrepreneurial personality," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 325-341.
    7. Thompson Piers & Jones-Evans Dylan & Kwong Caleb, 2012. "Entrepreneurship in Deprived Urban Communities: The Case of Wales," Entrepreneurship Research Journal, De Gruyter, vol. 2(1), pages 1-33, January.
    8. Andre van Stel & David Storey & Roy Thurik, 2006. "The effect of business regulations on nascent and actual entrepreneurship," Papers on Entrepreneurship, Growth and Public Policy 2006-04, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    9. Bögenhold, Dieter & Fachinger, Uwe, 2010. "How Diverse is Entrepreneurship? Observations on the social heterogeneity of self-employment in Germany," MPRA Paper 23271, University Library of Munich, Germany.
    10. José Ernesto Amorós & Pekka Stenholm, 2013. "The Influence of the Quality of Government Institutions on Entrepreneurial Motivation: Exploring the Variance across Countries," Working Papers 1401, Departament Empresa, Universitat Autònoma de Barcelona, revised Dec 2013.
    11. Amoros, Jose Ernesto, 2009. "Entrepreneurship and Quality of Institutions," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).
    12. Arndt Werner & Johanna Gast & Sascha Kraus, 2014. "The effect of working time preferences and fair wage perceptions on entrepreneurial intentions among employees," Small Business Economics, Springer, vol. 43(1), pages 137-160, June.
    13. D.B. Audretsch & M.A. Carree & A.R. Thurik, 2001. "Does Entrepreneurship reduce Unemployment?," Tinbergen Institute Discussion Papers 01-074/3, Tinbergen Institute, revised 24 Oct 2008.
    14. Charalampos Botsaris & Vasiliki Vamvaka, 2016. "Attitude Toward Entrepreneurship: Structure, Prediction from Behavioral Beliefs, and Relation to Entrepreneurial Intention," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(2), pages 433-460, June.

    More about this item

    Keywords

    determinants of entrepreneurship; nascent entrepreneurship; multinomial logit; barriers to entry; Europe;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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