nep-ent New Economics Papers
on Entrepreneurship
Issue of 2008‒03‒08
seven papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Climbing the Entrepreneurial Ladder: The Role of Gender By Grilo, I.; Thurik, A.R.; Verheul, I.; Zwan, P. van der
  2. Explaining Preferences and Actual Involvement in Self-Employment: New Insights into the Role of Gender By Verheul, I.; Thurik, A.R.; Grilo, I.
  3. Regional Opportunities and Policy Initiatives for New Venture Creation By Verheul, I.; Carree, M.A.; Santarelli, E.
  4. License to sell : the effect of business registration reform on entrepreneurial activity in Mexico By Bruhn, Miriam
  5. Long-term growth determinants of young businesses in Germany : effects of regional concentration and specialisation By Otto, Anne; Fornahl, Dirk
  6. On the Persistence of Job Creation in Old and New Firms By René Böheim; Alfred Stiglbauer; Rudolf Winter-Ebmer
  7. Collective Reputation, Entry and Minimum Quality Standard By Raphaël Soubeyran; Elodie Rouvière

  1. By: Grilo, I.; Thurik, A.R.; Verheul, I.; Zwan, P. van der (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: We investigate whether women and men differ with respect to the steps they take in the entrepreneurial process, distinguishing between five successive steps described by the following positions: (1) “never thought about itâ€; (2) “thinking about starting up a businessâ€; (3) “taking steps to start a businessâ€; (4) “running a business for less than three yearsâ€; (5) “running a business for more than three yearsâ€. This paper provides insights into the manner in which women and men climb the entrepreneurial ladder and the factors that influence their position on the ladder. We use data from the 2006 “Flash Eurobarometer survey on Entrepreneurship†consisting of more than 10,000 observations for 25 member states of the European Union, Norway, Iceland and the United States. Findings suggest that for men it is easier to climb the ladder and that this may be attributed partly to their higher tolerance of risk.
    Keywords: entrepreneurship;determinants;gender;nascent entrepreneurship;ordered multinomial logit
    Date: 2008–01–07
  2. By: Verheul, I.; Thurik, A.R.; Grilo, I. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: This paper investigates why self-employment rates of women are consistently lower than those of men. It has three focal points: it discriminates between the preference for self-employment and actual involvement in self-employment for women and men. It uses a huge data set from about 8,000 individuals across 26 countries while probit equations are estimated explaining (the preference for) self-employment. And a systematic distinction is made between different ways in which gender can influence the preference for and actual involvement in self-employment, including moderation, mediation and direct effects. Using the Theory of Planned Behaviour we investigate effects of risk attitude, social norms, locus of control, perceptions of the entrepreneurial environment as well as that of an individual’s age and educational attainment. Findings show that the lower preference of women to become self-employed largely explains their relatively low involvement in self-employment and that – other things equal – women and men who express a preference for it, have equal chances of becoming self-employed.
    Keywords: determinants of entrepreneurship;gender;latent & nascent entrepreneurship
    Date: 2008–01–28
  3. By: Verheul, I.; Carree, M.A.; Santarelli, E. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: This paper investigates the determinants of new venture creation across industries and locations for 103 Italian provinces between 1997 and 2003. We allow for differences in regional opportunities across industries and investigate the impact of a range of factors on entrepreneurship in different industries: manufacturing, retailing and wholesaling, hotels and restaurants. Our results show that wage costs deter entry in manufacturing and that regions with industrial districts are characterized by higher start-up rates. Firm entry in commercial sectors appears higher in large cities and areas with strong economic progress. For hotels and restaurants we find that tourism positively influences new firm formation. In terms of policy we do not find a significant effect of recently introduced regional laws promoting new firm formation.
    Keywords: venture creation;policy initiatives;Italian provinces
    Date: 2007–12–17
  4. By: Bruhn, Miriam
    Abstract: This paper studies the effect of business registration regulation on economic activity using micro-level data. The identification strategy exploits the fact that a recent business registration reform in Mexico wa s introduced in different municipalities at different points in time. Using panel data from the Mexican employment survey, I find that the reform increased the number of registered businesses by 5 percent in eligible industries. This increase was due to former wage earners opening businesses. Former unregistered business owners were not more likely to register their business after the reform. Moreover, employment in eligible industries went up by 2.8 percent, and people who were previously unemployed or out of the labor force were more likely to work as wage earners after the reform. Finally, the results imply that the competition from new entrants lowered prices by 0.6 percent and decreased the income of incumbent businesses by 3.2 percent.
    Keywords: E-Business,,Labor Policies,Competitiveness and Competition Policy,Business Environment
    Date: 2008–02–01
  5. By: Otto, Anne (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Fornahl, Dirk
    Abstract: "This paper explores how different levels of regional concentration and specialisation affect the long-term growth of young firms. The sample consists of knowledge-intensive and non-knowledge-intensive western German manufacturing firms which were set-up in 1992 and managed to survive 11 years. The paper examines the joint effect of regional, industrial and firm-specific determinants. The analysis of the concentration and specialisation factors takes into account the industrial and technological dimensions and the regional level of human capital. With regard to the concentration measures being located in an industrial or technological agglomeration slightly reduces the growth rates of start-ups. The same negative, but stronger, effect can be observed for competition measures. Furthermore, our results suggest that startups exhibit higher growth rates the higher specialised the region is in which they are located." (author's abstract, IAB-Doku) ((en))
    JEL: R11 L25 R12 O30
    Date: 2008–03–05
  6. By: René Böheim (Department of Economics, Johannes Kepler University Linz, Austria); Alfred Stiglbauer (Oesterreichische Nationalbank (National Bank of Austria)); Rudolf Winter-Ebmer (Department of Economics, Johannes Kepler University Linz, Austria)
    Abstract: We suggest a new method to analyze the success of firm creation by looking at the persistence of new jobs created in old and in new firms. Compared to survival rates of new versus old firms, this measure has the advantage that the sustainability of job creation in different circumstances is investigated. We analyze 21 years of job creation in Austria and find that new jobs last significantly longer in new than in old firms. Moreover, the survival of new jobs depends upon the state of the business cycle at the time of job creation, on the number of jobs created, and, for existing firms, on firm age.
    Keywords: job creation, new firms, reallocation, persistence
    JEL: J23 J63 E24 E32
    Date: 2008–03
  7. By: Raphaël Soubeyran (INRA-MOISA); Elodie Rouvière (INRA-MOISA)
    Abstract: This article deals with the issue of entry into an industry where firms share a collective reputation. First, we show that free entry is not socially optimal; there is a need for regulation through the imposition of a minimum quality standard. Second, we argue that a minimum quality standard can induce firms to enter the market. Contrary to conventional wisdom, a minimum quality standard should not always be considered as a barrier to entry.
    Keywords: Collective Reputation, Entry, Minimum Quality Standard
    JEL: L11 H41 I18 Q18
    Date: 2008–01

This nep-ent issue is ©2008 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.