| Title | The effect of business regulations on nascent to young business entrepreneurship |
|---|---|
| Published in | Small Business Economics: an entrepreneurship journal, Vol. 28, No. 2-3, p.171-186. ISSN 0921-898x. |
| Author | Stel, van A.J. (André); Storey, D. (David); Thurik, A.R. (Roy) |
| Date | 2007-03-01 |
| Language | English |
| Type | article |
| 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. |
| Publication | http://hdl.handle.net/1765/15791 |
| Persistent Identifier | urn:NBN:nl:ui:15-1765/15791 |
| Metadata | XML |
| Repository | Erasmus University Rotterdam |
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