The Impact of Educational Levels on Formal and Informal Entrepreneurship

By Alfredo Jiménez, C. Palmero-Cámara, María Josefa González-Santos, J. González-Bernal, Juan Alfredo Jiménez-Eguizábal. 2015

217 citations recorded by the source corpus.

This paper studies the impact of formal education on entrepreneurship rates. We propose that different levels of education not only vary between each other in terms of their impact, but also according to whether we analysis either formal or informal entrepreneurship. Our results show that tertiary education increases formal entrepreneurship as a consequence of the higher self-confidence, lower perceived risk and enhanced human capital. At the same time, tertiary education also has a negative effect on informal entrepreneurship as it increases awareness of and sensitivity to the possible negative repercussions of this kind of activities. In addition, we show that the impact of secondary education on formal entrepreneurship is positive as well, although in this case the effect on informal entrepreneurship is not significant. Even though secondary education also increases awareness of the potential negative repercussions of informal entrepreneurship, this effect is counteracted by a lack of management skills.

Subfields: Business and International Management, Information Systems, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/74d3589db461eb7ea92fcfc87f2b7f2e4031ed62

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Business and International Management

In Information Systems

In Management of Technology and Innovation

Citations in the corpus

The impact of higher education on entrepreneurial intention and human capital (2018, background): “The impact of each educational level on entrepreneurial choice tends to vary, not only because the determinants of every educational level often differ but also because each one has its own peculiarities, methods, objectives and resources (Politis, 2005; Jiménez et al., 2015).”
Formal Institutions and Opportunity Entrepreneurship. The Contingent Role of Informal Institutions (2019, background): “For example, an excess of entry regulation increases the profits necessary to compensate for the opportunity costs of other investment alternatives, discouraging opportunity entrepreneurship (Ho and Wong, 2007) and reorienting marginal businesses to the shadow -- unproductive, in the Baumolian termi”
The coronavirus (COVID-19) pandemic: challenges among Iranian startups (2020, background): “Also, it urged them to use their management capabilities (Ruiz-Jim enez and del Mar FuentesFuentes 2016; Leonelli, Masciarelli, and Fontana 2019) in designing more creative marketing campaigns, finding new marketing mediums and distribution channels.”