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The effect of business regulations on nascent and young business entrepreneurship
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van Stel, Andre, Storey, D. 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. doi:10.1007/s11187-006-9014-1 ISSN 0921-898X.
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Official URL: http://dx.doi.org/10.1007/s11187-006-9014-1
Abstract
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 |
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| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||
| Journal or Publication Title: | Small Business Economics | ||||
| Publisher: | Springer New York LLC | ||||
| ISSN: | 0921-898X | ||||
| Official Date: | March 2007 | ||||
| Dates: |
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| Volume: | Vol.28 | ||||
| Number: | No.2-3 | ||||
| Number of Pages: | 16 | ||||
| Page Range: | pp. 171-186 | ||||
| DOI: | 10.1007/s11187-006-9014-1 | ||||
| Status: | Peer Reviewed | ||||
| Publication Status: | Published | ||||
| Access rights to Published version: | Restricted or Subscription Access |
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