Arbeitspapier

Linking Business Ownership and Perceived Administrative Complexity: An Empirical Analysis of 18 OECD Countries

Administrative burdens are known to be a major business constraint for incumbent SMEs in modern economies. Far less is known about the influence of these burdens on the startup of new firms. The current paper examines to what extent perceived administrative complexity related to starting a new business influences the number of business owners across 18 OECD countries. We test this relationship combining data on business ownership from EIM's COMPENDIA data base and data on perceived administrative complexity from the Eurobarometer public opinion surveys coordinated by the European Commission. Our regression model enables to explicitly control for the influence of unemployment on the level of business ownership ('refugee effect'). We also control for risk tolerance and access to finance. Our results suggest that perceived administrative complexity has a negative impact on the level of business ownership. However, the effect is not immediate but rather seems to emerge in the long run.

Language
Englisch

Bibliographic citation
Series: Papers on Entrepreneurship, Growth and Public Policy ; No. 3504

Classification
Wirtschaft
New Firms; Startups
Regulation and Industrial Policy: General
Comparative Studies of Countries
Subject
business ownership
administrative burdens
unemployment
Unternehmer
Selbstständige
Eigentümerstruktur
Bürokratie
Folgekosten
Schätzung
OECD-Staaten

Event
Geistige Schöpfung
(who)
van Stel, André J.
Stunnenberg, Viktor
Event
Veröffentlichung
(who)
Max Planck Institute for Research into Economic Systems
(where)
Jena
(when)
2004

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • van Stel, André J.
  • Stunnenberg, Viktor
  • Max Planck Institute for Research into Economic Systems

Time of origin

  • 2004

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