This paper investigates the impact of changes in the number of business owners on three measures of economic performance, viz. employment growth, GDP growth and labor productivity growth. Particular attention is devoted to the lag structure. The analysis is performed at the country level for 21 OECD countries. Our results confirm earlier evidence on three stages in the impact of entry on economic performance: an initial direct positive effect, followed by a negative effect due to exiting capacities and finally a stage of positive supply-side effects. The net effect is positive for employment and GDP growth. Changes in the number of business owners have no effect on labor productivity.

Additional Metadata
Keywords business ownership, economic growth, entrepreneurship, lag structure
JEL Entrepreneurship (jel L26), New Firms; Startups (jel M13), Economic Growth and Aggregate Productivity: General (jel O40)
Persistent URL dx.doi.org/10.1007/s11187-006-9007-0, hdl.handle.net/1765/13564
Series ERIM Top-Core Articles
Journal Small Business Economics: an entrepreneurship journal
Citation
Carree, M.A, & Thurik, A.R. (2008). The lag structure of the impact of business ownership on economic performance in OECD countries. Small Business Economics: an entrepreneurship journal, 30(1), 101–110. doi:10.1007/s11187-006-9007-0