The Diversity of Entrepreneurial Regimes in Europe

50 Pages Posted: 22 Mar 2016 Last revised: 12 Apr 2019

See all articles by Selin Dilli

Selin Dilli

Utrecht University - School of Economics

Niklas Elert

HFI, Institute of Retail Economics

Date Written: March 21, 2016


Although institutional reforms are necessary to increase rates of entrepreneurship in European countries, we argue that one-size-fits-all reform strategies are unlikely to be successful. Reform strategies must be informed by a better knowledge of the varieties of European capitalism and the institutional complementarities that drive these differences. We investigate these issues by gathering a number of potentially relevant entrepreneurial regime measurements as well as indicators of formal and informal institutions based on data available from the 2000s onward. We employ principal component analysis, factor analysis and cluster analysis to examine how 21 European countries and the United States cluster in the entrepreneurial and institutional dimensions. Our results reveal six country clusters, or entrepreneurial regimes, with a distinct bundle of entrepreneurial characteristics and institutional attributes. The main implication is that different reform strategies are appropriate to promote entrepreneurship and economic growth in European countries in different clusters.

Keywords: Entrepreneurship, Innovation, Institutions, Regulation

JEL Classification: L5, M13, O31, P14

Suggested Citation

Dilli, Selin and Elert, Niklas, The Diversity of Entrepreneurial Regimes in Europe (March 21, 2016). IFN Working Paper No. 1118, Available at SSRN: or

Selin Dilli

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC

Niklas Elert (Contact Author)

HFI, Institute of Retail Economics ( email )


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