Firm Performance and Regulation Explaining International Differences in Entrepreneurship: The Role of Individual Characteristics and Regulatory Constraints* Author(s):
Silvia Ardagna and Annamaria Lusardi
Harvard University; Dartmouth College, Harvard Business School and NBER, 2008
We use a micro dataset that collects information across individuals, countries, and time to investigate the determinants of entrepreneurial activity in thirty-seven developed and developing nations. We focus both on individual characteristics and on countries’ regulatory differences. We show that individual characteristics, such as gender, age, and status in the workforce are important determinants of entrepreneurship, and we also highlight the relevance of social networks, self-assessed skills, and attitudes toward risk. Moreover, we find that regulation plays a critical role, particularly for those individuals who become entrepreneurs to pursue a business opportunity. The individual characteristics that are impacted most by regulation are those measuring working status, social network, business skills, and attitudes toward risk.
The Central Role of Entrepreneurs in Transition EconomiesAuthor(s):
John McMillan and Christopher Woodruff
Journal of Economic Perspectives, Volume 16, Issue 3, Pages 153–170, 2002
In this paper, we summarize entrepreneurial patterns in the transition economies, particularly Russia, China, Poland and Vietnam. Markets developed spontaneously in every transition country, but they were built at varying speeds. Some governments impeded the entrepreneurs’ self-help by creating conditions that made it hard for informal contracting to work; others created an environment that was conducive to self-help. The spontaneous emergence of markets, furthermore, has its limits. As rms’ activities became more complex, they came to need formal institutions. Some governments fostered entrepreneurship by building marketsupporting infrastructure; others did not (Frye and Shleifer, 1997). We will argue that the success or failure of a transition economy can be traced in large part to the performance of its entrepreneurs
The Effect of Business Regulations on Nascent and Young Business Entrepreneurship*Author(s):
André Stel, David Storey and A. Thurik
Small Business Economics, Springer 28(2):171-186, 2007
We examine the relationship, across 39 countries, between regulation and entrepreneurship using a new two-equation model. We find the minimum capital requirement required to start a business lowers entrepreneurship rates across countries, as do labour market regulations. However the administrative considerations of starting a business – such as the time, the cost, or the number of procedures required – are unrelated to the formation rate of either nascent or young businesses. Given the explicit link made by Djankov et al. (2002) between the speed and ease with which businesses may be established in a country and its economic performance – and the enthusiasm with which this link has been grasped by European Union policy makers – our findings imply this link needs reconsidering.
The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders Author(s):
Journal of Political Economy 106 (4): 667–705, 1998
This paper provides new evidence that state policies play a role in the location of industry. The paper classifies a state as pro-business if it has a right to work law and anti-business if it does not. The paper finds that, on average, there is a large, abrupt increase in manufacturing activity when one crosses a state border from an anti-business state into a pro-business state.
The Impact of Business Environment Reforms on New Firm RegistrationAuthor(s):
Leora Klapper and Inessa LoveJournal:
World Bank Policy Research Working Paper 5493Abstract:
This paper uses panel data on the number of new firm registrations in 92 countries to study how the ease of registering a business and the magnitude of registration reforms affect new firm registrations. We find that the costs, days and procedures required for starting a business are important predictors of new firm registration. These results can be helpful to motivate policymakers to make larger, broader reforms.
The Impact of the Financial Crisis on New Firm RegistrationAuthor(s):
Leora Klapper and Inessa LoveJournal:
Economic Letters [lead article]Abstract:
Panel data for 93 countries shows that most countries experienced a sharp drop in new firm registration during the financial crisis. The decline was more pronounced in countries with higher levels of financial development that were more affected by the crisis.