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Motivation based policies for an entrepreneurial EU economy

Author

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  • Marco van Gelderen
  • Roy Thurik
  • Jolanda Hessels

Abstract

This paper investigates the impact of various entrepreneurial motives and institutional conditions on entrepreneurial aspirations in terms of innovativeness, job growth expectations and export orientation. We estimate a two-equation model explaining entrepreneurial motivations and entrepreneurial aspirations, while taking into account the interrelationship between both groups of variables. We use data from the Global Entrepreneurship Monitor (GEM) and find that entrepreneurial aspirations are different for various types of entrepreneurial motives. For example, we find that the increase wealth motive as a prime driver for becoming selfemployed is positively related to innovation and growth ambitions, whereas we find no evidence of a relation between the independence motive and entrepreneurial aspirations. On the basis of our findings policy directions are presented for an entrepreneurial EU economy. An updated version of this paper is numbered H200710.

Suggested Citation

  • Marco van Gelderen & Roy Thurik & Jolanda Hessels, 2006. "Motivation based policies for an entrepreneurial EU economy," Scales Research Reports H200627, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h200627
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