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Entrepreneurship policy: Trade-offs and impact in the EU

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  • Karen A. Murdock

Abstract

Based on the notion that trade-offs in public policies form the basis of the separation of managed and entrepreneurial economies; this paper investigates the impact of policy on actual entrepreneurship activity in these two categories of economies. Using data from 19 European Union member countries, the impact that policy trade-offs in the goal, target, location and system of finance have on entrepreneurship activity is measured using ordinary least squares regression. The results indicate that while business regulation negatively impact entrepreneurship activity, the location of policy does not show any measurable impact. They suggest the need for still more supportive institutions in the effort to develop entrepreneurship and create entrepreneurial economies and realize economic benefits.

Suggested Citation

  • Karen A. Murdock, 2012. "Entrepreneurship policy: Trade-offs and impact in the EU," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(9-10), pages 879-893, December.
    • Handle: RePEc:taf:entreg:v:24:y:2012:i:9-10:p:879-893
    DOI: 10.1080/08985626.2012.742324
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    References listed on IDEAS

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    1. André Stel & David Storey & A. Thurik, 2007. "The Effect of Business Regulations on Nascent and Young Business Entrepreneurship," Small Business Economics, Springer, vol. 28(2), pages 171-186, March.
    2. Andre van Stel & David Storey & Roy Thurik, 2006. "The effect of business regulations on nascent and actual entrepreneurship," Papers on Entrepreneurship, Growth and Public Policy 2006-04, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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    Cited by:

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    3. Ratinho, Tiago & Amezcua, Alejandro & Honig, Benson & Zeng, Zhaocheng, 2020. "Supporting entrepreneurs: A systematic review of literature and an agenda for research," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    4. Brush, Candida & Ali, Abdul & Kelley, Donna & Greene, Patricia, 2017. "The influence of human capital factors and context on women's entrepreneurship: Which matters more?," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 105-113.

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