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Determinants of Willingness and Opportunity to Start as an Entrepreneur

Mirjam Praag and Hans Van Ophem

Kyklos, 1995, vol. 48, issue 4, 513-40

Abstract: This paper develops an empirical model to separate the unobserved factors of 'opportunity' and 'willingness' in the decision of labor-force participants to become self-employed or not. The estimation results suggest that the majority of young Americans are willing to switch to self-employment but that opportunity is a major constraint, especially through finance. Entrepreneurial ability aspects that can compensate for a lack of capital are scarce. Copyright 1995 by WWZ and Helbing & Lichtenhahn Verlag AG

Date: 1995
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Handle: RePEc:bla:kyklos:v:48:y:1995:i:4:p:513-40