“…Furthermore, the GEM study does not distinguish between formal and informal entrepreneurship. The GEM study has been criticised for overestimating the rate of entrepreneurship since very few of the respondents who claim to be in the process of starting a firm actually generate real start-ups (Hoffmann 2007). Instead, we have decided to use self-employment as a measure of entrepreneurship.…”
“…Furthermore, the GEM study does not distinguish between formal and informal entrepreneurship. The GEM study has been criticised for overestimating the rate of entrepreneurship since very few of the respondents who claim to be in the process of starting a firm actually generate real start-ups (Hoffmann 2007). Instead, we have decided to use self-employment as a measure of entrepreneurship.…”
“…The effects of specific entrepreneurial policies, their characteristics and their implementation cover a large part of the literature on entrepreneurship (Stevenson & Lundström, 2005Audretsch et al, 2007;Hoffmann, 2007). Wennekers et al (2002) stress out that institutions, in conjunction with government policy influence the opportunities for starting up a business.…”
Section: Entry Density Transaction Costs and Economic Institutionsmentioning
This paper aims to explore the connections between transaction costs and economic institutions on the one hand, and the group of variables describing cultural background on the other. By improving transaction characteristics and economic institutions, we can increase the entrepreneurship rates of the society. The paper tries to explore this relationship. Transaction cost and institutional variables are analysed using a principal component analysis and OLS. The results confirm the original working hypothesis of the existence of a relationship between transaction costs and culture. The component of cultural characteristics having a pro-growth orientation reduces transaction costs and enhances economic institutions, while the component of cultural characteristics that are reflected in the pro-social characteristics of cultural background increase it. A positive relationship between entrepreneurial variable and the transaction and economic institutions is revealed.
“…Hoffmann (2007) finds evidence for a positive relationship between the business environment, covering multiple policy areas, and performance indicators of entrepreneurship.…”
Section: Regional Opportunities Industrial Districts and Regional Lawsmentioning
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