Determinants of entrepreneurship in Europe

Isabel Grilo and Roy Thurik

Papers on Entrepreneurship, Growth and Public Policy from Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group

Abstract: This paper presents an Eclectic Framework explaining (developments in and determinants of) entrepreneurship incorporating different streams of literature and spanning different disciplines. The Eclectic Framework integrates factors shaping the demand for entrepreneurship on the one hand, with those influencing the supply of entrepreneurs on the other hand. It also creates insight into the role of public policy identifying the channels through which the demand or the supply of entrepreneurship can be shifted. In its empirical part the present paper estimates a multinomial logit using survey data from the 15 EU member states, Norway, Iceland, Liechtenstein and the US to establish the effect of demographic and other variables on various entrepreneurial engagement levels. Other than demographic variables, the set of explanatory variables used includes the perception by respondents of administrative complexities, of availability of financial support, a rough measure of risk tolerance, the respondents' preference for self -employment and country specific effects. The most striking result is that the perception of lack of financial support has no discriminative effect across the various levels of entrepreneurial engagement.

Keywords: entrepreneurship; determinants; nascent entrepreneurship; multinomial logit; barriers to entry (search for similar items in EconPapers)
JEL-codes: H10 J23 M13 R12 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2004-07
New Economics Papers: this item is included in nep-dcm, nep-eec, nep-ent, nep-geo and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Working Paper: Determinants Of Entrepreneurship In Europe (2004)
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