Year: 2009
Type: report
Abstract: We use two micro data sets that collect harmonized data across countries to investigate the effects of regulation on new businesses.We are able to distinguish between two types of entrepreneurs: those who start a business to pursue a business opportunity and those who start a business because they could not find better work.Irrespective of the measure of regulation we use, we always find a detrimental effect of regulation on entrepreneurship.While women are overall less likely to start new businesses, in more regulated countries women are pulled into entrepreneurship not to pursue a business opportunity but because they could not find better work.Moreover, regulation dampens the effects of self-assessed business skills and social networks.In more regulated economies, those with better business skills and those who know other entrepreneurs are less likely to become entrepreneurs to pursue a business opportunity.Tighter regulation also exacerbates fear of failure, further discouraging business start-up.All our estimates point to a negative effect of regulation.
DOI: 10.3386/w14747
Authors: Silvia Ardagna, Annamaria Lusardi
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1575494666