Explaining International Differences in Entrepreneurship: The Role of Individual Characteristics and Regulatory Constraints
We use a micro dataset that collects information across individuals, countries, and time to investigate the determinants of entrepreneurial activity in thirty-seven developed and developing nations. We focus both on individual characteristics and on countries' regulatory differences. We show that individual characteristics, such as gender, age, and status in the workforce are important determinants of entrepreneurship, and we also highlight the relevance of social networks, self-assessed skills, and attitudes toward risk. Moreover, we find that regulation plays a critical role, particularly for those individuals who become entrepreneurs to pursue a business opportunity. The individual characteristics that are impacted most by regulation are those measuring working status, social network, business skills, and attitudes toward risk
We would like to thank David Blanchflower, Boyan Jovanovic, Leora Klapper, Josh Lerner, Norman Loyaza, Maria Luengo-Prado, Ramana Nanda, Ana Maria Oviedo, Paul Reynolds, Antoinette Schoar, and Luis Serven for their comments and help with the data, and seminar participants at the NBER's International Differences in Entrepreneurship Conference, the European University Institute, the European Bank for Reconstruction and Development, and Northeastern University for their many suggestions. We also thank David Raines for his excellent research assistance; any errors are our responsibility. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
Explaining International Differences in Entrepreneurship: The Role of Individual Characteristics and Regulatory Constraints, Silvia Ardagna, Annamaria Lusardi. in International Differences in Entrepreneurship, Lerner and Schoar. 2010