Template-Type: ReDIF-Paper 1.0
Author-Name: van Stel, A.J.
Author-Name-Last: van Stel
Author-Name-First: André
Author-Person: pva170
Author-Name: Storey, D.
Author-Name-Last: Storey
Author-Name-First: David
Author-Name: Thurik, A.R.
Author-Name-Last: Thurik
Author-Name-First: Roy
Author-Person: pth26
Title: The Effect of Business Regulations on Nascent and Young Business Entrepreneurship
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. (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.
Creation-Date: 2006-09-26
File-URL: https://repub.eur.nl/pub/7996/ERS-2006-052-ORG.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2006-052-ORG
Classification-JEL: E32, G18, M, M13, O32
Keywords: Business Regulations, Global Entrepreneurship Monitor, Nascent Entrepreneurship, World Bank Doing Business, Young Businesses
Handle: RePEc:ems:eureri:7996