Determinants of Entrepreneurial Engagement Levels in Europe and the Us

Posted: 15 Nov 2008

See all articles by Isabel Grilo

Isabel Grilo

Catholic University of Louvain

Roy Thurik

Montpellier Business School; Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC); Erasmus Research Institute of Management (ERIM); EIM Netherlands - Business and Policy Research; Tinbergen Institute

Date Written: December 2008

Abstract

In this article, the process of the entrepreneurial decision is decomposed in seven engagement levels ranging from “never thought about starting a business” to “gave up,” “thinking about it,” “taking steps for starting up,” “having a young business,” “having an older business,” and “no longer being an entrepreneur.” By using a multinomial logit model, we allow the effect of covariates to differ across the various entrepreneurial engagement levels. Data from two Entrepreneurship Flash Eurobarometer surveys (2002 and 2003) containing over 20,000 observations of the 15 old EU Member States, Norway, Iceland, Liechtenstein, and the United States are used. Other than demographic variables, the set of explanatory variables used includes the perception by respondents of administrative complexities, of availability of financial support, and of risk tolerance, the respondents’ preference for self-employment and country-specific effects. Among our results, we find that the perception of lack of financial support has no discriminative effect across the various levels of entrepreneurial engagement while perception of administrative complexities plays a negative role only for high levels of engagement.

Suggested Citation

Grilo, Isabel and Thurik, Roy, Determinants of Entrepreneurial Engagement Levels in Europe and the Us (December 2008). Industrial and Corporate Change, Vol. 17, Issue 6, pp. 1113-1145, 2008. Available at SSRN: https://ssrn.com/abstract=1301366 or http://dx.doi.org/dtn044

Isabel Grilo (Contact Author)

Catholic University of Louvain ( email )

Place Montesquieu, 3
B-1348 Louvain-la-Neuve, 1348
Belgium
010 47 43 60 (Phone)

Roy Thurik

Montpellier Business School

France

Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC) ( email )

3000 DR Rotterdam
Netherlands
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+31 10 408 9146 (Fax)

HOME PAGE: http://www.thurik.com

Erasmus Research Institute of Management (ERIM) ( email )

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Netherlands

EIM Netherlands - Business and Policy Research

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2701 AA Zoetermeer
Netherlands
+31 79 341 3634 (Phone)
+31 79 331 3742 (Fax)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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