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| Author: | Stel, A. van Storey, D. J. Thurik, A. R. |
| Title: | The effect of business regulations on nascent and young business entrepreneurship |
| Journal: | Small business economics
2007 : FEB/MAR, VOL. 28:2-3, p. 171-186 |
| Index terms: | entrepreneurship regulations small and medium-sized enterprises (SMEs) |
| Language: | eng |
| Abstract: | This paper examines the relationship between regulation and entrepreneurship in 39 countries using a novel two-equation model. The findings show that the minimum capital requirement to start a business and labour market regulations have an effect in lowering the entrepreneurship rate. The administration cost such as time and amount of procedures required were not found to be related to the formation rate of nascent and young businesses. This implicates a need for reconsidering the previously accepted link between the economic performance of a country and the swiftness and ease in starting new businesses. |
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