Has the Swedish Business Sector Become More Entrepreneurial than the US Business Sector?
Fredrik Heyman (),
Pehr-Johan Norbäck () and
No 13683, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Recent studies document a 30-year decline in various measures of entrepreneurship in the U.S. Using detailed Swedish employer-employee data over the period 1990 to 2013, we find young firms to be more prominent in the Swedish business sector than in the U.S. business sector. Young Swedish firms, aged five years or less, account for more than half of all firms during this period. We also observe an increase in Swedish entrepreneurial activity for start-ups. However, increasing job destruction rates for young firms has implied a declining employment share for younger firms from the mid-2000s. Moreover, most of the job creation by young firms occurs in the expanding service sector. We discuss different explanations for why Sweden appears not to have the same strong decline in entrepreneurial activity as the U.S. has had during the last two decades. We argue that one important explanation is economic reforms in Sweden in the 1990s that mitigated several hurdles to entrepreneurship.
Keywords: entrepreneurship; industrial structure and structural change; job dynamics; Matched employer-employee data (search for similar items in EconPapers)
JEL-codes: J23 K23 L26 L51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-ent, nep-eur, nep-ind, nep-ino, nep-law, nep-lma, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at email@example.com
Journal Article: Has the Swedish business sector become more entrepreneurial than the US business sector? (2019)
Working Paper: Has the Swedish Business Sector Become More Entrepreneurial than the U.S. Business Sector? (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:13683
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=13683
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().