 Do government and legal barriers impede entrepreneurship in the U.S.? An exploratory study of perceived vs. actual barriersAgnieszka Kwapisz Journal of Business Venturing Insights, 2019, vol. 11, issue C, - Abstract: In this exploratory study, we investigate how the actual and the perceived level of government bureaucracy correlates with nascent ventures' outcomes, a largely understudied topic in entrepreneurship literature. We use data merged (N = 922) from the U.S. Panel Study of Entrepreneurial Dynamics II (PSED II)—which tracked nascent startups over a six-year period—and the Economic Freedom of North America Index from the Fraser Institute. We find no relationship between state-level economic freedom and startups' outcomes and no relationship between the actual and the perceived government bureaucracy. Additionally, government is perceived as a major barrier by only 6% of entrepreneurs (of whom only 54% actually check government regulations), and 1% of entrepreneurs list regulations as the main reason for quitting the startup process. Overall, our results suggest that government and legal barriers are not significantly related to nascent startups’ outcomes and are not major barriers for entrepreneurs. Keywords: Barriers to entrepreneurship; Perceived barriers; Institutions; Nascent entrepreneurship; New venture creation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jobuve:v:11:y:2019:i:c:20 DOI: 10.1016/j.jbvi.2019.e00114 Access Statistics for this article Journal of Business Venturing Insights is currently edited by Dimo Dimov More articles in Journal of Business Venturing Insights from Elsevier |
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