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Roy Thurik - One of the best experts on this subject based on the ideXlab platform.
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The Effect of Entrepreneurial Activity on National
2020Co-Authors: André Van Stel, Martin Carree, Roy ThurikAbstract:Entrepreneurial Activity is generally assumed to be an important aspect of the organization of industries most conducive to innovative Activity and unre- strained competition. This paper investigates whether total Entrepreneurial Activity (TEA) influences GDP growth for a sample of 36 countries. We test whether this influence depends on the level of economic development measured as GDP per capita. Adjustment is made for a range of alternative explanations for achieving economic growth by incorporating the Growth Competitiveness Index (GCI). We find that Entrepreneurial Activity by nascent entrepre- neurs and owner/managers of young businesses affects economic growth, but that this effect depends upon the level of per capita income. This suggests that entrepre- neurship plays a different role in countries in different stages of economic development.
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Post-Materialism Influencing Total Entrepreneurial Activity Across Nations
2020Co-Authors: L.m. Uhlaner, Roy ThurikAbstract:The study of predictors of Entrepreneurial Activity at the country level has been dominated by economic influences. However, the relative stability of differences in Entrepreneurial Activity across countries suggests that other forces such as institutional and/or cultural factors are at play. The objective of this paper is to explore more specifically how post-materialism may help to explain differences in Entrepreneurial Activity across countries. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total Entrepreneurial Activity, as defined within the Global Entrepreneurship Monitor. The model is also tested for the rate of established businesses, as distinct from nascent and young firms. The measure for post-materialism is based upon Inglehart's four-item post-materialism index. Because of the known interactions between economic, cultural, and social factors found in previous research, a set of economic, demographic and social factors is included to investigate the independent role post-materialism plays in prediction of Entrepreneurial Activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries, world-wide, are used to test the hypotheses, based on intersecting data available from the Global Entrepreneurship Monitor, World Values Survey and other published sources. Findings confirm the significance of post-materialism in predicting total Entrepreneurial Activity and more particularly, new business formation rates, even when controlling for these other factors.
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The relationship among Entrepreneurial Activity, business cycles and economic openness
International Entrepreneurship and Management Journal, 2015Co-Authors: Gerard Scholman, André Van Stel, Roy ThurikAbstract:We investigate the interplay among Entrepreneurial Activity, business cycles and unemployment in relation to economic openness. Additionally, we explore to what extent the observation frequency (quarterly versus annual data) influences the estimation results. Following the empirical literature, we estimate a pooled vector autoregression (VAR) model with fixed effects for the three macroeconomic variables. Using both quarterly and annual data for 19 OECD countries for the period 1998-2007, we observe that over the short term (after one quarter), a country's Entrepreneurial Activity is stimulated when its business cycle lags behind the world business cycle, whereas over the medium term (after 1 to 2 years), Entrepreneurial Activity is stimulated when its business cycle leads the world business cycle. This pattern suggests that a country's business cycle position relative to the world cycle creates different types of Entrepreneurial opportunities depending on the time horizon considered. These results apply only to economies that are relatively open, which suggests that economic openness plays a role in generating Entrepreneurial opportunities related to a country's cyclical performance.
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Entrepreneurial Activity, Self-Perception and Gender
SSRN Working Paper Series, 2009Co-Authors: Ingrid Verheul, Lorraine M Uhlaner, Roy ThurikAbstract:Drawing on Bem's psychological theory of self-perception, this paper presents and tests a model that examines the impact of gender and Entrepreneurial Activity on Entrepreneurial self-perception. Based on a sample of alumni of a large Midwestern U.S. university, regression techniques are used to identify those activities associated with self-perceptions of entrepreneurship, as well as direct and indirect effects of gender. Results support the model of both direct and indirect effects of gender. The paper provides insights into gender issues in entrepreneurship as well as the definition of entrepreneurship in general.
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Postmaterialism influencing total Entrepreneurial Activity across nations
Journal of Evolutionary Economics, 2007Co-Authors: L.m. Uhlaner, Roy ThurikAbstract:The relative stability of differences in Entrepreneurial Activity across countries suggests that other than economic factors are at play. The objective of this paper is to explore how postmaterialism may explain these differences. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total Entrepreneurial Activity, as defined within the Global Entrepreneurship Monitor (GEM) . The model is also tested for the rate of established businesses. The measure for postmaterialism is based upon Inglehart’s four-item postmaterialism index. A set of economic, demographic and social factors is included to investigate the independent role postmaterialism plays in predicting Entrepreneurial Activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries ( GEM , World Values Survey and other sources) are used to test the hypotheses. Findings confirm the significance of postmaterialism in predicting total Entrepreneurial Activity and more particularly, new business formation rates.
Robert W. Fairlie - One of the best experts on this subject based on the ideXlab platform.
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the kauffman index of Entrepreneurial Activity 1996 2013
Kauffman Foundation, 2013Co-Authors: Robert W. FairlieAbstract:The Kauffman Index of Entrepreneurial Activity is a leading indicator of new business creation in the United States. Capturing new business owners in their first month of significant business Activity, this measure provides the earliest documentation of new business development across the country. The percentage of the adult, non-business owner population that starts a business each month is measured using data from the Current Population Survey (CPS).The Index captures all types of business Activity and is based on nationally-representative sample sizes of more than an half million observations each year. In addition to this overall rate of Entrepreneurial Activity, separate estimates for specific demographic groups, states, and select metropolitan statistical areas (MSAs) are presented. The Index provides the only national measure of the rate of business creation by specific population groups.
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Kauffman Index of Entrepreneurial Activity: 1996-2009
SSRN Electronic Journal, 2010Co-Authors: Robert W. FairlieAbstract:In 2009, the number of people reporting entry into Entrepreneurial Activity in the United States reached its highest point over the last fourteen years. This increased rate of entrepreneurship was seen across most demographic categories, with the largest increases coming among older individuals and African-Americans. While the West continues to have a higher rate of entrepreneurship than other parts of the country do, it showed a sharp decline in 2008. These trends and many more are discussed here in the Kauffman Index of Entrepreneurial Activity, the leading indicator of new business creation in the United States.Capturing new business owners in their first month of significant business Activity, this measure provides the earliest documentation of new business development across the country. The percentage of the adult, non-business-owner population that starts a business each month is measured using data from the Current Population Survey (CPS). In addition to this overall rate of Entrepreneurial Activity, separate estimates for specific demographic groups, states, and select metropolitan statistical areas (MSAs) are presented. The Index provides the only national measure of business creation by specific demographic groups.New 2009 data allow for an update to previous reports, with consideration of trends in the rates of Entrepreneurial Activity over the fourteen-year period between 1996 and 2009. The Kauffman Index reveals important shifts in the national level of Entrepreneurial Activity and shifts in the demographic and geographic composition of new entrepreneurs across the country. Key findings for 2009 include:• In 2009, 0.34 percent of the adult population (or 340 out of 100,000 adults) created a new business each month, representing approximately 558,000 new businesses per month. The 2009 Entrepreneurial Activity rate represents an increase over the 2008 rate of 0.32 percent and represents the highest level over the past decade and a half.• Overall, men are substantially more likely to start businesses each month than are women. The Entrepreneurial Activity rate for men increased slightly from 0.42 percent in 2007 to 0.43 percent in 2008. The Kauffman Index for women also increased slightly, from 0.24 percent to 0.25 percent.• The Entrepreneurial Activity rate among African-Americans increased from 0.22 percent in 2008 to 0.27 percent in 2009, reaching the highest level over the past decade and a half. • The Latino Entrepreneurial Activity rate decreased from 0.48 percent in 2008 to 0.46 percent in 2009, and the Asian Entrepreneurial Activity rate decreased from 0.35 percent in 2008 to 0.31 percent in 2009. The non-Latino white business-creation rate increased from 2008 to 2009 (0.31 percent to 0.33 percent).• The immigrant rate of Entrepreneurial Activity declined slightly from 0.53 percent in 2008 to 0.51 percent in 2009, but remained substantially higher than the native-born rate of 0.30 percent.• The oldest age group (ages fifty-five to sixty-four) experienced the second-largest increase in business-creation rates from 2008 to 2009, contributing to a two-year upward trend. Among this group, Entrepreneurial Activity rose from 0.36 percent to 0.40 percent. The age group thirty-five to forty-four also experienced a large increase in Entrepreneurial Activity from 2008 to 2009 (0.35 percent to 0.40 percent). The youngest age group (twenty to thirty-four) has a substantially lower entrepreneurship rate (0.24 percent).• Entrepreneurship rates increased the most for college-educated individuals (0.31 percent to 0.34 percent), and high school individuals (0.35 percent to 0.38 percent) in 2009. • The construction industry had the highest rate of Entrepreneurial Activity of all major industry groups in 2009 (1.55 percent). The second highest rate of Entrepreneurial Activity was in the services industry (0.42 percent).• The Entrepreneurial Activity rate declined sharply in the West, from 0.42 percent in 2008 to 0.38 percent in 2009. Business creation rates increased in the Midwest and South, but the West continues to have the highest rates.• The states with the highest rates of Entrepreneurial Activity were Oklahoma (470 per 100,000 adults), Montana (470 per 100,000 adults), Arizona (460 per 100,000 adults), Texas (450 per 100,000 adults), and Idaho (450 per 100,000 adults). The states with the lowest rates of Entrepreneurial Activity were Mississippi (170 per 100,000 adults), Nebraska (200 per 100,000 adults), Pennsylvania (200 per 100,000 adults), Alabama (210 per 100,000 adults), and Minnesota (220 per 100,000 adults).• The states experiencing the largest increases in Entrepreneurial Activity rates over the past decade were Georgia (0.20 percentage points), Arizona (0.14 percentage points), Tennessee (0.13 percentage points), District of Columbia (0.12 percentage points), and Massachusetts (0.10 percentage points). The states that experienced the largest decreases in their rates were New Mexico (-0.20 percentage points), Alaska (-0.15 percentage points), North Dakota (-0.12 percentage points), and Nebraska (-0.10 percentage points).• Among the fifteen largest MSAs in the United States, the highest Entrepreneurial Activity rate in 2009 was in Houston (0.63 percent). The large MSA with the lowest rate of Entrepreneurial Activity was Seattle (0.16 percent).
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kauffman index of Entrepreneurial Activity 1996 2008
2009Co-Authors: Robert W. FairlieAbstract:Overall, the 2008 Entrepreneurial Activity rate increased slightly over 2007. An average of 0.32 percent of the adult population (or 320 out of 100,000 adults) created a new business each month - representing approximately 530,000 new businesses per month - as compared to 0.30 percent in 2007. While Entrepreneurial Activity has remained generally consistent over the past decade, the Kauffman Index points out important shifts in the demographic and geographic composition of new entrepreneurs across the country. The annual Kauffman Index of Entrepreneurial Activity, a leading indicator of new business Activity, provides the earliest documentation of new business development across the United States. Analyzing matched monthly data from the Current Population Survey since 1996, the Kauffman Index allows comparisons of new business creation over time.Key findings include:• The oldest age group - ages 55 to 64 - experienced a big increase in business-creation rates from 2007 to 2008 and, as a result, has the highest level of business creation (0.36 percent).• The Activity rate increased sharply for immigrants in 2008 - from 0.46 percent in 2007 to 0.53 percent in 2008 - further widening the gap between immigrant and native-born rates. Although the increase in entrepreneurship rates among immigrants was driven entirely by low- and medium-income-potential types of businesses, immigrants also are more likely than U.S. natives to start high-income-potential types of businesses.• Latinos’ Entrepreneurial Activity rate increased from 0.40 percent in 2007 to 0.48 percent in 2008, continuing an upward trend that began in 2005. Over the thirteen years of the study, Latinos have had the highest percentage increase in Entrepreneurial Activity (from 0.33 percent in 1996 to 0.48 percent in 2008).• Asian-Americans’ Entrepreneurial Activity also increased sharply, from 0.29 percent in 2007 to 0.35 percent in 2008. Non-Latino white business-creation rates increased slightly, while African-American rates slightly declined.• Entrepreneurial Activity increased from 2007 rates for both men and women (from 0.41 percent to 0.42 percent for men and from 0.20 percent to 0.24 percent for women).• With the exception of the Midwest, all regions saw increased Entrepreneurial Activity from 2007 to 2008. • The states with the highest 2008 Entrepreneurial Activity rates were Georgia, New Mexico, Montana, Arizona, Alaska and California.• The states with the lowest Entrepreneurial Activity rates were Pennsylvania, Missouri, Wisconsin, West Virginia, Iowa and Ohio.• Among the United States’ fifteen largest metropolitan statistical areas, Atlanta had the highest Entrepreneurial rate (0.74 percent) in 2008. Philadelphia had the lowest rate (0.16 percent).
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Kauffman Index of Entrepreneurial Activity: State Report 2005
SSRN Electronic Journal, 2008Co-Authors: Robert W. FairlieAbstract:Based on data from the 2005 Current Population Surveys (CPS), the state report of the Kauffman Index of Entrepreneurial Activity offers insight into variation in Entrepreneurial Activity by state. Like the national report of the Kauffman Index, the state report measures the proportion of non-business-owning adults who create a new business each month.The 2005 report indicates that the five states with the highest rates of Entrepreneurial Activity were Vermont, Colorado, Montana, Wyoming, and Idaho, while the five states with the lowest rates included Delaware, West Virginia, Alabama, Kentucky, and Pennsylvania. Atlanta, Riverside, San Francisco, and Houston had the highest entrepreneurship rates among the fifteen largest metropolitan statistical areas (MSAs) in the United States, while the large MSAs with the lowest startup rates included Detroit, Philadelphia, Boston, and Seattle.Overall, the Mountain and Pacific states boasted higher rates of Entrepreneurial Activity. The Middle Southern and Midwestern states, on the other hand, were characterized by lower startup rates.
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Kauffman Index of Entrepreneurial Activity: 1996-2007
SSRN Electronic Journal, 2008Co-Authors: Robert W. FairlieAbstract:The rate of Entrepreneurial Activity among women dropped sharply in 2007 while the Activity rate among men and immigrants surged, according to a national assessment of Entrepreneurial Activity by the Ewing Marion Kauffman Foundation. According to the Kauffman Index of Entrepreneurial Activity, the only annual study to measure business startup Activity for the entire United States adult population at the individual owner level, 495,000 new businesses per month were started in 2007 with 0.30 percent of the adult population (or 300 out of 100,000 adults) involved in the startup process. This Entrepreneurial Activity rate is a slight increase over the 2006 rate of 0.29 percent.Several surprising findings from the Kauffman Index are:1. Immigrants far outpaced native-born Americans in Entrepreneurial Activity, increasing from 0.37 percent in 2006 to 0.46 percent in 2007. Immigrants are now substantially more likely to start businesses than are native-born Americans, which remained constant at 0.27 percent.2. Men are now twice as likely as women to start a business each month, a larger differential than in any previous year of the KIEA study. For men, the Entrepreneurial Activity rate increased from 0.35 percent in 2006 to 0.41 percent in 2007. The rate decreased from 0.23 percent to 0.20 percent for women.3. The Entrepreneurial Activity rate among Latinos increased from 0.33 percent in 2006 to 0.40 percent in 2007, the largest increase for any major ethnic or racial group.Data for the Kauffman Index of Entrepreneurial Activity are derived from the monthly Current Population Survey (CPS), a national population survey conducted by the U.S. Bureau of the Census and the Bureau of Labor Statistics. The detailed demographic information available allows researchers to estimate rates of Entrepreneurial Activity by race, education, region, age and immigrant status and is the most up-to-date estimate of new business Activity and the only estimate of business creation by detailed demographic group. Unlike other studies that primarily capture the creation of new employer firms, the Kauffman Index of Entrepreneurial Activity captures all adults 20-64 who initially start a business, including those who own incorporated or unincorporated businesses and those who are employers and non-employers. Capturing new business owners in their first month of significant business Activity serves as a leading indicator of new business creation in the United States.
L.m. Uhlaner - One of the best experts on this subject based on the ideXlab platform.
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Post-materialism as a cultural factor influencing Entrepreneurial Activity across nations : A cultural factor influencing total Entrepreneurial Activity across nations
2020Co-Authors: L.m. Uhlaner, A.r. ThurikAbstract:The study of predictors of Entrepreneurial Activity at the country level has been dominated by economic influences. However, the relative stability of differences in Entrepreneurial Activity across countries suggests that other forces such as institutional and/or cultural factors are at play. The objective of this paper is to explore more specifically how post-materialism may help to explain differences in total Entrepreneurial Activity across countries. Data from 28 countries, world-wide, are used to test the hypotheses, based on intersecting data available from the Global Entrepreneurship Monitor, World Values Survey and other published sources. Findings confirm the significance of post-materialism in predicting total Entrepreneurial Activity even when controlling for these other factors.
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Post-Materialism Influencing Total Entrepreneurial Activity Across Nations
2020Co-Authors: L.m. Uhlaner, Roy ThurikAbstract:The study of predictors of Entrepreneurial Activity at the country level has been dominated by economic influences. However, the relative stability of differences in Entrepreneurial Activity across countries suggests that other forces such as institutional and/or cultural factors are at play. The objective of this paper is to explore more specifically how post-materialism may help to explain differences in Entrepreneurial Activity across countries. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total Entrepreneurial Activity, as defined within the Global Entrepreneurship Monitor. The model is also tested for the rate of established businesses, as distinct from nascent and young firms. The measure for post-materialism is based upon Inglehart's four-item post-materialism index. Because of the known interactions between economic, cultural, and social factors found in previous research, a set of economic, demographic and social factors is included to investigate the independent role post-materialism plays in prediction of Entrepreneurial Activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries, world-wide, are used to test the hypotheses, based on intersecting data available from the Global Entrepreneurship Monitor, World Values Survey and other published sources. Findings confirm the significance of post-materialism in predicting total Entrepreneurial Activity and more particularly, new business formation rates, even when controlling for these other factors.
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Postmaterialism influencing total Entrepreneurial Activity across nations
Journal of Evolutionary Economics, 2007Co-Authors: L.m. Uhlaner, Roy ThurikAbstract:The relative stability of differences in Entrepreneurial Activity across countries suggests that other than economic factors are at play. The objective of this paper is to explore how postmaterialism may explain these differences. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total Entrepreneurial Activity, as defined within the Global Entrepreneurship Monitor (GEM) . The model is also tested for the rate of established businesses. The measure for postmaterialism is based upon Inglehart’s four-item postmaterialism index. A set of economic, demographic and social factors is included to investigate the independent role postmaterialism plays in predicting Entrepreneurial Activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries ( GEM , World Values Survey and other sources) are used to test the hypotheses. Findings confirm the significance of postmaterialism in predicting total Entrepreneurial Activity and more particularly, new business formation rates.
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post materialism a cultural factor influencing total Entrepreneurial Activity across nations
Scales research reports, 2004Co-Authors: Roy Thurik, L.m. UhlanerAbstract:The study of predictors of Entrepreneurial Activity at the country level has been dominated by economic influences. However, the relative stability of differences in Entrepreneurial Activity across countries suggests that other forces such as institutional and/or cultural factors are at play. The objective of this paper is to explore more specifically how post-materialism may help to explain differences in total Entrepreneurial Activity across countries. Data from 28 countries, world-wide, are used to test the hypotheses, based on intersecting data available from the Global Entrepreneurship Monitor, World Values Survey and other published sources. Findings confirm the significance of post-materialism in predicting total Entrepreneurial Activity even when controlling for these other factors.
David Urbano - One of the best experts on this subject based on the ideXlab platform.
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Does Entrepreneurial Activity matter for economic growth in developing countries? The role of the institutional environment
International Entrepreneurship and Management Journal, 2019Co-Authors: David Urbano, Sebastian Aparicio, David Audretsch, Maria NogueraAbstract:The discussion on which institutions determine Entrepreneurial Activity – and the role of institutions in the aggregated output for developing countries – is as yet unresolved. The extant literature about entrepreneurship recognizes new ventures as potential mechanisms for long-term development. Yet, there is a consensus on the lack of evidence, particularly for these countries. Drawing on institutional economics, this article explores the interrelationships among institutional environment, Entrepreneurial Activity, and economic growth. To this end, we use simultaneous-equation panel data models for a sample of 14 developing countries (78 observations) over the period of 2004–2012. The main findings suggest a causal chain running from institutions to opportunity entrepreneurship, which is linked to the economic growth of emerging economies. In particular, we find that institutional factors – such as the number of procedures to start a new business, private credit coverage ,, and access to communication– influence Entrepreneurial Activity driven by opportunity. Policy implications for developing countries could be derived in order to enhance their economic performance through Entrepreneurial Activity.
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the effect of Entrepreneurial Activity on economic growth
2019Co-Authors: David Urbano, Sebastian Aparicio, David B AudretschAbstract:Focused on those consequences of Entrepreneurial Activity, this chapter estimates the effect of entrepreneurship on economic growth. To this purpose, our modeling relies on a traditional Cobb–Douglas production function, which allows the examination of possible factors such as entrepreneurship that may be also important to foster economic growth. A panel data model over 43 countries in the period from 2002 to 2012 is assessed. We find that Entrepreneurial Activity, approached through overall TEA, opportunity and necessity TEA, effectively influences economic growth, though overall and opportunity TEA have a higher effect than necessity driven entrepreneurship. Comparisons across countries and periods of time are also conducted. These analyses show that overall TEA seems to have a higher influence on economic growth of non-OECD countries than on their OECD counterpart. We also find that overall TEA has a higher effect on growth across countries during post-crisis period than during pre-crisis period. These results could be useful for both theoretical discussion and public strategy design, in which entrepreneurship may be considered a policy mechanism.
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institutional context Entrepreneurial Activity and social progress
2019Co-Authors: David Urbano, Sebastian Aparicio, David B AudretschAbstract:The main purpose of this chapter is to examine how country’s institutional context influences the way in which Entrepreneurial Activity affects social progress. Following the theoretical approach of institutional economics, we test our hypotheses using pooled data of 62 countries (2012 and 2014) and simultaneous equation model estimation. The findings suggest that business regulations decrease Entrepreneurial Activity, while established democracies provide as government context conducive to entrepreneurship. In addition, we find that the Entrepreneurial Activity has a positive impact on the Social Progress Index, which is an alternative measure of economic performance. Policy and theoretical implications are discussed from these findings.
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Entrepreneurial Activity and regional competitiveness evidence from european Entrepreneurial universities
Journal of Technology Transfer, 2016Co-Authors: Maribel Guerrero, David Urbano, Alain FayolleAbstract:The interesting relationship between Entrepreneurial Activity and regional competitiveness has been a major focus of academics, university managers, and policy makers during the past decades—in particular the role of institutions in the establishment of political, social, and economic rules-. For example, since the enactment of the US Bayh–Dole Act more than 30 years ago, many American cities and regions are increasingly viewing universities as potential engines of economic growth. In these new socioeconomic scenarios, the role of Entrepreneurial universities is not only generates/transfers knowledge but also contributes/provides leadership for the creation of Entrepreneurial thinking, actions, and institutions. Previous studies have shown the university’s role in economic development, but no empirical study has analyzed the Entrepreneurial Activity generated by university students per university at the country/regional level of analysis. The purpose of this paper is to explore the impact of the university’s Entrepreneurial Activity on regional competitiveness. Adopting the institutional economics and the endogenous growth approaches, a proposed conceptual framework was developed and tested with structural equation modeling using data from 102 universities located in 56 NUTS II of 12 European countries. Our results evidenced that informal factors (e.g., attitudes, role models) have a higher influence on university Entrepreneurial Activity than formal factors (e.g., support measures, education and training). Our results also evidenced a higher contribution of universities on regional competitiveness, in particular, when we used social measures (talent human capital) instead economic measures (GDP per capita).
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Cultural Diversity and Entrepreneurial Activity
Revista De Ciencias Sociales, 2013Co-Authors: Claudia Alvarez, David UrbanoAbstract:The objective of this paper is to analyze the effects of cultural diversity (ethnic, religious and linguistic fragmentation) on Entrepreneurial Activity. Using data from 39 countries participating in the Global Entrepreneurship Monitor (GEM) for 2008 and using various linear regressions, the importance of ethnic and linguistic over religious fragmentation as conditioning factors for entrepreneurship is demonstrated. In terms of implications, the study permits advancing, on the one hand, in the relationship between informal institutions such as culture and Entrepreneurial Activity, from the more novel perspective of cultural diversity in the context of institutional theory. Also, the research has some practical implications for policy makers in terms of designing policies and strategies to promote Entrepreneurial Activity in the current context of globalization, which favors geographical mobility and therefore, cultural diversity.
Roger H. Gordon - One of the best experts on this subject based on the ideXlab platform.
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Tax Reform and Entrepreneurial Activity
Production Engineer, 2006Co-Authors: Julie Berry Cullen, Roger H. GordonAbstract:The objective of this paper is to forecast the effects of plausible tax reforms on the extent of Entrepreneurial Activity in the United States. To do so, we draw on recent work we have done assessing the many routes through which the tax structure affects the amount of Entrepreneurial Activity, and estimating the responsiveness of behavior to these incentives. Using these estimates, we forecast that the effect of tax reforms on Entrepreneurial Activity can be very sensitive to whether or not current tax provisions aimed to encourage risk-taking in small firms remain part of the tax code. If they are left in place, we forecast that a shift to a Hall-Rabushka flat tax will leave the overall amount of Entrepreneurial Activity largely unaffected, although it will lead to a drop in Activity among the highly skilled and an offsetting increase in Activity among the less highly skilled. However, if in the process of fundamental tax reform, "net operating loss" carrybacks are disallowed, and section 1244 allowing ...
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Do Tax Rates Encourage Entrepreneurial Activity
IMF Working Papers, 1997Co-Authors: Roger H. GordonAbstract:When the top personal tax rates are above the corporate rate, high-income individuals have an incentive to reclassify their earnings as corporate rather than personal income for tax purposes. U.S. tax law at least imposes strict limits on the extent to which employees in publicly traded corporations can engage in such income shifting. However, entrepreneurs setting up new firms can easily reclassify their income for tax purposes. This tax incentive therefore favors Entrepreneurial Activity. The paper discusses how best to subsidize Entrepreneurial Activity while avoiding other economic distortions.
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Do Tax Encourage Entrepreneurial Activity
1997Co-Authors: Roger H. GordonAbstract:When the top personal tax rates are above the corporate rate, high-income individuals have an incentive to reclassify their earnings as corporate rather than personal income for tax purposes. U.S. tax law at least imposes strict limits on the extent to which employees in publicly traded corporations can engage in such income shifting. However, entrepreneurs setting up new firms can easily reclassify their income for tax purposes. This tax incentive therefore favors Entrepreneurial Activity. The paper discusses how best to subsidize Entrepreneurial Activity while avoiding other economic distortions.
