Entrepreneurial entry: which institutions matter?

Arbeitspapier

In this paper we explore the relationship between the individual decision to become an entrepreneur and the institutional context. We pinpoint the critical roles of property rights and the size of the state sector for entrepreneurial activity and test the relationships empirically by combining country-level institutional indicators for 44 countries with working age population survey data taken from the Global Enterprise Monitor. A methodological contribution is the use of factor analysis to reduce the statistical problems with the array of highly collinear institutional indicators. We find that the key institutional features that enhance entrepreneurial activity are indeed the rule of law and limits to the state sector. However, these results are sensitive to the level of development.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4123

Classification and Topics

• Classification: Wirtschaft ; Entrepreneurship ; Capitalist Systems: Property Rights ; Comparative Analysis of Economic Systems ; Socialist Systems and Transitional Economies: Legal Institutions; Illegal Behavior
• Subject: Entrepreneurship ; property rights ; access to finance ; Unternehmer ; Unternehmensgründung ; Institutionelle Infrastruktur ; Eigentumsrecht ; Staatsquote ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Aidis, Ruta ; Estrin, Saul ; Mickiewicz, Tomasz
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/35677
• URN: urn:nbn:de:101:1-20090513209
• Last update: 10.03.2025, 11:42 AM CET