The determinants of venture creation time: a cross-country perspective

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Esra Memili, Associate Professor of Entrepreneurship (Creator)
Dianne H.B. Welsh, Distinguished Professor of Entrepreneurship (Creator)
The University of North Carolina at Greensboro (UNCG )
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Abstract: The purpose of this paper is to examine the impact of macro-institutional and macro-non-institutional factors on the new venture creation time across emerging as well as developed economies in Europe using panel data from 2003 to 2006 in 15 emerging and developed countries. This paper finds significant relationships between the venture start-up time and institutional factors that include lending interest rates, start-up procedures, and taxation and one non-institutional factor, GDP per capita. Additionally, we found differences in the factors between emerging and developed countries. Institutional factors, such as start-up procedures and trade opportunities, are important determinants of new venture creation time in emerging countries, consistent with the findings of recent studies. To encourage business formation, policy makers may need to revise policies concerning these factors which can facilitate or restrict new venture formation. Implications for further research and practice are discussed. An earlier version of this paper has been accepted and presented at the Kauffman International Research and Policy Roundtable 2012, Liverpool, United Kingdom.

Additional Information

International Entrepreneurship and Management Journal
Language: English
Date: 2012
Venture creation time, Institutions, New venture launch, Entrepreneurship, Macroeconomics

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