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Business Exits entail greater future levels of entrepreneurship? An empirical analysis at country level

  • Albiol, Judit
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    Using Global Entrepreneurship Monitor data for 41 countries this study investigates the impact of business exit on entrepreneurial activity at the country level. The paper distinguishes between two types of entrepreneurial activity according with the motive to start a new business: entrepreneurs driven by opportunity and necessity motives. The findings indicate that exits have a positive impact on future levels of entrepreneurial activity in a country. For each exit in a given year, a larger proportion of entrepreneurial activity the following year. Moreover, this e ffect turns out to be higher for opportunity entrepreneurs. The findings indicate that both types of entrepreneurial activity rates are influenced by the same factors and in the same direction. However, for some factors we find a di fferential impact on the entrepreneurship. The results show some important implications given that business exit may be overcome when there is a necessity motivation. This has important implications for both researchers and policy makers. JEL codes: L26. Keywords: Entrepreneurship, business exit, social values

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    File URL: http://hdl.handle.net/2072/211754
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    Paper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/211754.

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    Date of creation: 2012
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    Handle: RePEc:urv:wpaper:2072/211754
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    8. Roy Thurik & Ingrid Verheul & Jolanda Hessels & Peter van der Zwan, 2010. "Factors Influencing the Entrepreneurial Engagement of Opportunity and Necessity Entrepreneurs," Scales Research Reports H201011, EIM Business and Policy Research.
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