Abstract
AbstractThis paper distinguishes between formal and informal entrepreneurship. It theorises that each are influenced by very different combinations of macro-economic factors and strongly moderated by country income levels. Empirically, we show the ease of starting a business and high-quality governance, exert a powerful influence on formal, but not informal entrepreneurship. The latter is influenced by self-employment rates in low-income countries and by female labour force participation in high-income countries. Policy-makers seeking to improve economic welfare through enhancing entrepreneurship therefore have to choose the ‘type’ of entrepreneurship on which to focus and then select appropriate policies. By providing a novel grouping of these policies, we are able to assist them in making these choices.
Funder
University of Dublin, Trinity College
Publisher
Springer Science and Business Media LLC
Subject
Economics and Econometrics,General Business, Management and Accounting
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