Determinants of Nordic entrepreneurship
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 20 February 2017
Abstract
Purpose
The purpose of this paper is to analyse the determinants of entrepreneurial activity in the Nordic countries over the period of years 2004-2013 to provide supportive material for the Nordic entrepreneurial policy makers with specific focus on the role of necessity/opportunity-driven entrepreneurship, administrative barriers and the research and development (R&D) sector.
Design/methodology/approach
Quantitative study employed panel regression analysis with fixed effects estimator to test the impact of determinants on entrepreneurial activity operationalized as a rate of registered business activity and as an established business ownership rate.
Findings
The results obtained for the both dependent variables did not substantially differ from each other or the supported hypothesis stating a positive relationship between unemployment rate, GDP per capita and entrepreneurial activity. Also a negative impact of administrative barriers was found. However, no statistically significant positive impact of the R&D sector was observed.
Practical implications
Nordic entrepreneurial policy makers should put more effort into the reduction of administrative barriers towards founding enterprises and support entrepreneurship during the times of higher unemployment rates. Further evaluation of Nordic R&D policies is strongly needed, since no positive impacts towards entrepreneurship were found.
Originality/value
The empirical analysis was conducted based on the research gap in the studies related to the Nordic entrepreneurial policies and perceived need for the policy recommendations that are provided.
Keywords
Acknowledgements
Author thanks to Daniel Ericsson, Erik Rosell, Martin Lukeš and to the five anonymous referees for their contributions to paper development. This research was funded under the EU collaborative research project CUPESSE (Cultural Pathways to Economic Self-Sufficiency and Entrepreneurship; Grant Agreement No. 613257).
Citation
Dvouletý, O. (2017), "Determinants of Nordic entrepreneurship", Journal of Small Business and Enterprise Development, Vol. 24 No. 1, pp. 12-33. https://doi.org/10.1108/JSBED-07-2016-0104
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited