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Habitual Entrepreneurs in the Making: How Labour Market Rigidity and Employment Affects Entrepreneurial Re-entry

Author

Listed:
  • Wennberg, Karl

    (Linköping University)

  • Larsson, Anne-Sophie

    (The Ratio Institute)

  • Fu, Kun

    (Loughborough University London)

Abstract

We investigate the impact of country-level labour market regulations on the reentry decision of experienced entrepreneurs, whereby they become habitual entrepreneurs. Multilevel logit models on entry decisions among 15,709 individuals in 29 European countries show that labour market regulations have a positive influence on the decision to reenter into entrepreneurship. This positive impact is stronger among individuals holding wage jobs at the time of re-entry compared to those that do not. Our results indicate that novice and habitual entrepreneurs may respond very differently to labour market rigidity. We discuss and provide tentative explanations for these differences, and outline potential policy implications.

Suggested Citation

  • Wennberg, Karl & Larsson, Anne-Sophie & Fu, Kun, 2018. "Habitual Entrepreneurs in the Making: How Labour Market Rigidity and Employment Affects Entrepreneurial Re-entry," Ratio Working Papers 315, The Ratio Institute.
    • Handle: RePEc:hhs:ratioi:0315
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    Citations

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    Cited by:

    1. Min Zhao & Weijian Guo, 2022. "Does Land Certification Stimulate Farmers’ Entrepreneurial Enthusiasm? Evidence from Rural China," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    2. Sebastián Uriarte & Jorge Espinoza-Benavides & Domingo Ribeiro-Soriano, 2023. "Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 941-973, June.
    3. Linda Elizabeth Ruiz & José Ernesto Amorós & Maribel Guerrero, 2023. "Does gender matter for corporate entrepreneurship? A cross-countries study," Small Business Economics, Springer, vol. 60(3), pages 929-946, March.
    4. Nils Karlson & Christian Sandström & Karl Wennberg, 2021. "Bureaucrats or Markets in Innovation Policy? – a critique of the entrepreneurial state," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 34(1), pages 81-95, March.
    5. Karl Wennberg, 2020. "Towards an innovative entrepreneurship policy," Journal of Evolutionary Economics, Springer, vol. 30(2), pages 587-590, April.
    6. Kumju Hwang & Jinsook Choi, 2021. "How Do Failed Entrepreneurs Cope with Their Prior Failure When They Seek Subsequent Re-Entry into Serial Entrepreneurship? Failed Entrepreneurs’ Optimism and Defensive Pessimism and Coping Humor as a ," IJERPH, MDPI, vol. 18(13), pages 1-24, June.
    7. Rodgers, Waymond & Degbey, William Y. & Söderbom, Arne & Leijon, Svante, 2022. "Leveraging international R&D teams of portfolio entrepreneurs and management controllers to innovate: Implications of algorithmic decision-making," Journal of Business Research, Elsevier, vol. 140(C), pages 232-244.
    8. Ioscha Cordier & Marco Bade, 2023. "The relationship between business regulation and nascent and young business entrepreneurship revisited," Small Business Economics, Springer, vol. 61(2), pages 587-616, August.
    9. Jaroslaw Ropega, 2020. "Novice and habitual entrepreneurs and external business support exploitation," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 18(2B), pages 271-285.
    10. Chen Zhou & Huatao Peng & Bingbing Li, 2022. "How Risk Prevention Mechanisms Regulate Serial Entrepreneurs to Achieve Sustainable Entrepreneurship—A Policy Text Analysis," Sustainability, MDPI, vol. 14(21), pages 1-23, October.
    11. Maribel Guerrero & Jorge Espinoza-Benavides, 2021. "Do emerging ecosystems and individual capitals matter in entrepreneurial re-entry’ quality and speed?," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1131-1158, September.
    12. Adriana Grenčíková & Marcel Kordoš & Jozef Bartek & Vladislav Berkovič, 2021. "The Impact of the Industry 4.0 Concept on Slovak Business Sustainability within the Issue of the Pandemic Outbreak," Sustainability, MDPI, vol. 13(9), pages 1-14, April.

    More about this item

    Keywords

    Habitual entrepreneurship; employment; labour market rigidity; institutional context; multilevel modelling;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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