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International Differences in Entrepreneurship$
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Josh Lerner and Antoinette Schoar

Print publication date: 2010

Print ISBN-13: 9780226473093

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226473109.001.0001

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Entrepreneurship and Firm Formation across Countries

Entrepreneurship and Firm Formation across Countries

Chapter:
(p.129) 4 Entrepreneurship and Firm Formation across Countries
Source:
International Differences in Entrepreneurship
Author(s):
Leora Klapper, Raphael Amit, Mauro F. Guillén
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226473109.003.0005

This chapter explores a different approach to get at measuring entrepreneurial trends by measuring the formalization of businesses. The information is obtained by surveying business registries and other government sources via surveys and follow-up phone calls across a sample of eighty-four countries. The chapter discusses a methodology for collecting data on new business creation, serving as a first step in enabling research on the dynamics of entrepreneurial activity. The data can be used as a benchmark for changes in the composition of the private sector and may advance the study of the impact of regulatory, political, macroeconomic, and institutional changes on entrepreneurship and growth. Data collected could become the base for further studies in business ecology. The distribution of businesses per sector could be used for a deeper research paper aimed at answering questions such as which kinds of business are easier to incorporate into challenging business environments, which sectors are interdependent on one another, and which contribute more to a country's economic development. The results shed light on the dynamics of firm registration as a function of the economic and financial development of a country and its regulatory environment.

Keywords:   entrepreneurship, firm formation, private sector, macroeconomics, business ecology, economic development

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