Entrepreneurship in the EU: to wish and not to be

Isabel Grilo and Jesus Maria Irigoyen

Papers on Entrepreneurship, Growth and Public Policy from Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group

Abstract: It is now widely acknowledged that the entrepreneurial capacity in an economy is a key determinant of economic growth and productivity improvements. This paper uses survey data from the 15 EU Member States and the US to establish the effect of demographic and other variables on latent and actual entrepreneurship. Latent entrepreneurship is measured by the probability of a declared preference for self-employment over employment. Other than demographic variables such as gender, age and education level, the set of explanatory variables used includes country specific effects, the perception by respondents of administrative complexities and of availability of financial support and a rough measure of risk tolerance. The most striking result is the lack of explanatory power of the perception of lack of available financial support in the latent entrepreneurship equation.

Keywords: Entrepreneurship; self-employment; administrative complexities; access to finance; risk attitudes; probit regression (search for similar items in EconPapers)
JEL-codes: J23 M13 R12 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2005-08
New Economics Papers: this item is included in nep-eec, nep-ent and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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