The Effect of Business Regulations on Nascent and Young Business Entrepreneurship
2006-09-26
Research Paper
| Related Files |
|---|
View PDF Version
(ERS-2006-052-ORG.pdf, 0.3MB) |
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.
- Global Entrepreneurship Monitor
- Nascent Entrepreneurship
- Business Regulations
- World Bank Doing Business
- Young Businesses
- O32 : Management of Technological Innovation and R&D
- G18 : Government Policy and Regulation
- M : Business Administration and Business Economics; Marketing; Accounting
- M13 : New Firms; Startups
- E32 : Business Fluctuations; Cycles
- business
- entrepreneurship
- country
- regulation
- entrepreneur
- policy
- table
- necessity
- variable
- opportunity
- number
- entrepreneurship rates
- effect
- world bank
- business rate
- model
- equation
- level
- business regulations
- business entrepreneurship rate
