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What obstacles do entrepreneurs encounter?

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  • Monia Lougui
  • Kristina Nyström

Abstract

Purpose - – The purpose of this paper is to identify the obstacles encountered by current and potential entrepreneurs. The authors explore the areas associated with starting and running a business in which entrepreneurs find difficulties. Furthermore, the authors explore which entrepreneurs experience most difficulties. What issues do entrepreneurs in different sectors need help with? What issues do entrepreneurs with different current positions in the labor market need help with? Design/methodology/approach - – The authors use a unique database that includes information regarding the questions that entrepreneurs ask when they call a government helpline established to provide information about how to start and run a business. The database consists of more than 30,000 observations during the period from 2005 to 2009. Findings - – The results indicate that aside from general questions and concerns, taxes, laws and permits are the issues with which entrepreneurs most frequently need help. The authors do not find any gender differences regarding the need for help. Currently or future unemployed entrepreneurs more often need help related to financing, grants and business plans. Self-employed entrepreneurs need help with issues related to operating the firm, such as questions regarding employment, accounting, permits and laws. Originality/value - – The research provides unique insights into the problems that entrepreneurs encounter during the entrepreneurial process. Hence, the paper identifies areas in which better or additional counseling and support from public policy agencies may be needed to improve the development and performance of new ventures.

Suggested Citation

  • Monia Lougui & Kristina Nyström, 2014. "What obstacles do entrepreneurs encounter?," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 3(2), pages 275-291, October.
    • Handle: RePEc:eme:jepppp:v:3:y:2014:i:2:p:275-291
    DOI: 10.1108/JEPP-08-2012-0041
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    References listed on IDEAS

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    Cited by:

    1. Jabir Ali & Nadia Yusuf, 2021. "International Quality Certification and Business Performance of Indian Firms: Evidence from Enterprise Survey Data," Global Business Review, International Management Institute, vol. 22(6), pages 1459-1470, December.
    2. Schulz, Matthias & Urbig, Diemo & Procher, Vivien, 2016. "Hybrid entrepreneurship and public policy: The case of firm entry deregulation," Journal of Business Venturing, Elsevier, vol. 31(3), pages 272-286.
    3. Trey Malone & Jayson L. Lusk, 2016. "Brewing up entrepreneurship: government intervention in beer," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(3), pages 325-342, November.
    4. Stefan Fölster & Li Jansson & Anton Nyrenström Gidehag, 2016. "The effect of local business climate on employment," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(1), pages 2-24, April.
    5. Zakia Jabeen & Jabir Ali & Nadia Yusuf, 2021. "Difference in business obstacles faced by firms across sizes: evidence from enterprise survey data of India," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 71-81, December.

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