Moving beyond the negative effect of the regulation of entry: Disentangling causality in new venture creation decisions

Maarten Colson (), Pieter Vandekerkhof (), Wim Marneffe (), Jelle Schepers () and Sebastian Aparicio ()
Additional contact information
Maarten Colson: Hasselt University Agoralaan
Pieter Vandekerkhof: Hasselt University Agoralaan
Wim Marneffe: Hasselt University Agoralaan
Jelle Schepers: Hasselt University Agoralaan
Sebastian Aparicio: Universitat Autònoma de Barcelona

Journal of Regulatory Economics, 2025, vol. 67, issue 1, No 3, 90 pages

Abstract: Abstract How and to what extent can entry regulations today still affect start-up decisions across regions and countries before formal new venture creation? This study draws on an overarching institutional framework and conducts two experiments in which we uniquely subject 634 Belgian, Dutch and German nascent entrepreneurs to multiple real regulatory scenarios for starting a new limited liability company. By disentangling how and to what extent different entry regulations and particular components of the regulation of entry can impact start-up decisions across regions, the experiments provide new very granular insights to move beyond existing knowledge about the negative association between entry regulations and new venture creation. Next to this, interestingly, after several robustness analyses, in both experiments, regional and informal institutional factors do not moderate the negative impact of the regulation of entry. In other words, across regions in this study, nascent entrepreneurs do not react significantly differently to the impact of different regulatory start-up conditions. We discuss how these results contribute to the regulatory institutions and entrepreneurship literature and address policy implications.

Keywords: Entry regulations; New venture creation; Nascent entrepreneurs; Institutional theory; Entrepreneurship experiment (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11149-024-09486-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:regeco:v:67:y:2025:i:1:d:10.1007_s11149-024-09486-1

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11149/PS2

DOI: 10.1007/s11149-024-09486-1

Access Statistics for this article

Journal of Regulatory Economics is currently edited by Menaham Spiegel

More articles in Journal of Regulatory Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().