The Effect of Business Regulations on Nascent and Young Business Entrepreneurship

By André van Stel, D. Storey, Roy Thurik. 2007

838 citations recorded by the source corpus.

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. [Djankov et al. 2002, ‹The Regulation of Entry’, Quarterly Journal of Economics117(1), 1–37] 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.

Subfields: Business and International Management, Management of Technology and Innovation, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/ee1f42658d133b12dd93dfe177007790c12ff306

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Citations in the corpus

Entrepreneurship in a Regional Context: Historical Roots, Recent Developments and Future Challenges (2014, background): “VAN STEL A. and STOREY D. J. (2004) The link between firm births and job creation: is there a Upas tree effect?, Regional Studies 38, 893–909.”
Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence (2016, background): “…2003), other authors suggest that governance factors perceived by society could encourage or discourage the business dynamics in which entrepreneurship is involved (Djankov et al., 2005, 2006; Johnson et al., 1999; Johnson et al., 2000a; McMillan and Woodruff, 1999, 2002; van Stel et al., 2007).”
Opportunity Versus Necessity Entrepreneurship: Two Components of Business Creation (2018, neutral): “A third limitation is that 8 For examples of studies using the GEM and its definition of opportunity versus necessity entrepreneurship see Wennekers et al. (2005), Bergmann and Sternberg (2007), Ho and Wong (2007), Van Stel et al. (2007), Acs and Amorós (2008), Bjørnskov and Foss (2008), McMullen et”
Entrepreneurial intentions of young women in the Arab world: socio-cultural and educational barriers (2017, background): “At the macro-level many elements have been found to provide a favorable environment for entrepreneurship, such as a liberal market structure and dynamics (Boccardelli and Magnusson, 2006; Van Stel et al., 2007); easy access to financing (Carter et al., 2007; Itani et al., 2011; Kim et al., 2006; Kwo”
Bankruptcy Law and Entrepreneurship (2008, neutral): “…minimum capital requirements—have been shown to be negatively correlated to the incidence of entrepreneurship (Klapper et al., 2006; Klapper et al., 2007; van Stel et al., 2007).7 Yet even with easy access to limited liability, personal bankruptcy law may be expected to make a difference.”
Foreign direct investment, institutional quality, economic freedom and entrepreneurship in emerging markets (2014, neutral): “(2005), Van Stel et al. (2007) and McMullen et al.”