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Greasing the wheels of entrepreneurship? A complement according to entrepreneurial motives

Author

Listed:
  • Marcus Dejardin

    (Centre de recherches en Economie Regionale et Politique Economique, UNamur)

  • Helene Laurent

    (Centre de recherches en Economie Regionale et Politique Economique, UNamur)

Abstract

We consider the effects that corruption and regulation may have on entrepreneurship according to the underlying motivation compelling an individual to open a business. By doing this, we document the idea, widely studied within the context of economic growth, that corruption may be beneficial or detrimental according to its interrelationships with regulation. More specifically, we complement the findings by Dreher and Gassebner (2013) supporting the assumption that corruption “greases the wheels” (vs “sands the wheel”) of strict regulation for early-stage firms. We provide evidence that opportunity-driven entrepreneurs are much more affected by corruption and regulation than necessity-driven ones.

Suggested Citation

  • Marcus Dejardin & Helene Laurent, 2014. "Greasing the wheels of entrepreneurship? A complement according to entrepreneurial motives," Working Papers 1402, University of Namur, Department of Economics.
    • Handle: RePEc:nam:wpaper:1402
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    References listed on IDEAS

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    Cited by:

    1. Traikova, Diana & Manolova, Tatiana S. & Möllers, Judith & Buchenrieder, Gertrud, 2017. "Corruption perceptions and entrepreneurial intentions in a transitional context - The case of rural Bulgaria," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 22(03), pages 1-21.
    2. Valerija Botrić & Ljiljana Božić, 2015. "Innovators' vs Non-innovators' perceptions of corruption in European post-transition economies," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 8(3), pages 47-58, December.

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    More about this item

    Keywords

    Entrepreneurship; Corruption; Regulation; Doing business; “Grease the wheels”; Sand the wheels; Opportunity-Necessity motives;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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