We investigate which countries have the highest potential to achieve entrepreneurial progress. This progress is defined using an entrepreneurial ladder with five successive steps: “never thought about starting a business”, “thinking about starting a business”, “taking steps to start a business”, “running a business for less than three years”, and “running a business for more than three years”. We assess the influence of individual-level and country-level variables on progression through these stages. Data are used from the 2007 “Flash Eurobarometer Survey on Entrepreneurship”, covering 27 European countries and the United States. We find that countries display large variation in the ease with which businesses come into existence and survive. In the US many people think about setting up a business whereas Europeans are better at achieving higher levels of engagement. Particularly in Austria, France and Lithuania there appear to be low probabilities to advance in the process. Our analysis suggests that country differences can be explained by the level of economic development and risk tolerance while the administrative and financial climate play a role for some steps. The paper also provides results on the influence of individual-level demographic and obstacle perception variables.

competitiveness, continuation ratio logit, determinants, entrepreneurship, nascent entrepreneurship
Structure and Scope of Government: General (jel H10), Employment Determination; Job Creation; Demand for Labor; Self-Employment (jel J23), Entrepreneurship (jel L26), New Firms; Startups (jel M13), Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (jel R12)
Tinbergen Institute
hdl.handle.net/1765/16518
Tinbergen Institute Discussion Paper Series
Discussion paper / Tinbergen Institute
Tinbergen Institute

van der Zwan, P.W, Verheul, I, Thurik, A.R, & Grilo, I. (2009). Entrepreneurial Progress: Climbing The Entrepreneurial Ladder in Europe and The US (No. TI 2009-070/3). Discussion paper / Tinbergen Institute. Tinbergen Institute. Retrieved from http://hdl.handle.net/1765/16518