What are the drivers of business demography and employment in the countries of the European Union?

Rafik Abdesselam, Jean Bonnet and Patricia Renou-Maissant

Applied Economics, 2020, vol. 52, issue 37, 4018-4043

Abstract: The aim of this contribution is to establish a typology of European entrepreneurship countries with respect to variables related to entrepreneurial activity and economic development. Using a combination of multidimensional data analyses allows us to extend the concept of ‘entrepreneurial regimes’ and leads to the distinction of five such entrepreneurial regimes. Moreover, in order to better characterize these classes, a wide set of illustrative variables representative of national economic development, labour market functioning, and formal and informal institutional environments, as well as variables specific to the entrepreneurial population, are considered. Finally, discriminant analyses show that the five explanatory themes considered (Innovation, Employment, Formal Institutions, Entrepreneurship and Governance) differentiate the classes, and significantly explain the diversity of entrepreneurial regimes. These findings have important implications for the implementation of public policy, in order to promote entrepreneurial activity and reduce unemployment.

Date: 2020
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DOI: 10.1080/00036846.2020.1730756

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