The effect of business regulations on nascent and young business entrepreneurship
van Stel, Andre, Storey, David J. and Thurik, A. Roy. (2007) The effect of business regulations on nascent and young business entrepreneurship. Small Business Economics, Vol.28 (No.2-3). pp. 171-186. ISSN 0921-898XFull text not available from this repository.
Official URL: http://dx.doi.org/10.1007/s11187-006-9014-1
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. [Djankov et al. 2002, 'The Regulation of Entry', Quarterly Journal of Economics 117(1), 1-37] 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.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HF Commerce
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
|Divisions:||Faculty of Social Sciences > Warwick Business School|
|Journal or Publication Title:||Small Business Economics|
|Publisher:||Springer New York LLC|
|Number of Pages:||16|
|Page Range:||pp. 171-186|
|Access rights to Published version:||Restricted or Subscription Access|
Actions (login required)