The effect of business regulations on nascent and young business entrepreneurship

André van Stel, Roy Thurik and David Storey

No H200609, Scales Research Reports from EIM Business and Policy Research

Abstract: In this paper we examine the relationship, across 39 countries, between regulation and entrepreneurship using a new two-equation model. We find the minimum capital requirement required to start a business lowers entrepreneurship rates across countries, as do labour market regulations. However the administrative considerations of starting a business - such as the time, the cost, or the number of procedures required - are unrelated to the formation rate of either nascent or young businesses. Given the explicit link made by Djankov et al. (2002) between the speed and ease with which businesses may be established in a country and its economic performance - and the enthusiasm with which this link has been grasped by European Union policy makers - our findings imply this link needs reconsidering.

Pages: 25 pages
Date: 2006-09-18
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Citations: View citations in EconPapers (26)

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http://www.entrepreneurship-sme.eu/pdf-ez/H200609.pdf (application/pdf)

Related works:
Journal Article: The Effect of Business Regulations on Nascent and Young Business Entrepreneurship (2007)
Working Paper: The Effect of Business Regulations on Nascent and Young Business Entrepreneurship (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eim:papers:h200609

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