The Effect of Uncertainty on Entrepreneurial Activity
Hidenori Takahashi and
Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)
Although uncertainty is an important concept in entrepreneurship research, its impact on entrepreneurial activity has not been explored. We examine whether, and under what conditions, uncertainty affects entrepreneurial activity. Using data from 52 countries over 16 years, we find no evidence that uncertainty affects entrepreneurial activity. However, we find evidence that potential entrepreneurs start their businesses in uncertain circumstances if institutions are in place that reduce the cost of starting a business. These results suggest that it may not be external factors such as uncertainty that influence potential entrepreneursâ€™ decisions, but internal factors.
Pages: 29 pages
New Economics Papers: this item is included in nep-ent and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
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:eti:dpaper:22064
Access Statistics for this paper
More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().