Entrepreneurial engagement levels in the European Union

Isabel Grilo and Roy Thurik

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

Abstract: A multinomial logit model and survey data from the 25 EU member states and the US are used to establish the effect of demographic and other variables on various entrepreneurial engagement levels. These engagement levels range from "never thought about starting a business" to "thinking about it", "taking steps for starting up", "having a young business", "having an older business" and "no longer being an entrepreneur". Data of the 2004 Entrepreneurship Flash Eurobarometer survey containing over 13,500 ob-servations is used. Other than demographic variables such as gender, age, education level and whether par-ents are self-employed, the set of explanatory variables used includes country specific effects, measures of risk tolerance, internal and external locus of control and four perceptions of 'obstacles'. The 'obstacle' vari-ables include the perception by respondents of administrative complexities, of availability of financial sup-port, of accessibility of information for start-up and whether the current economic climate is favorable. Among the four perception variables only administrative complexities displays an unambiguous obstacle profile in that its presence has a significant negative impact on higher entrepreneurial engagement levels. Country effects suggest a clear underperformance of Europe relative to the US in less mature entrepreneu-rial phases.

Keywords: determinants of entrepreneurship; nascent entrepreneurship; multinomial logit; barriers to entry; Europe (search for similar items in EconPapers)
JEL-codes: H10 J23 M13 R12 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2005-10
New Economics Papers: this item is included in nep-dcm, nep-edu, nep-eec, nep-ent and nep-tid
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Citations: View citations in EconPapers (27)

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Working Paper: Entrepreneurial engagement levels in the European Union (2006)
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