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

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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.

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Notes

  1. Probably the time series model (duration model or unit root) may be warrant to use to estimate such type of data, but unfortunately, we have only 4 years data which is less than the desire number of years that we need to require develop a time series model.

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Authors and Affiliations

  1. Department of Economics, College of Business and Management, Saginaw Valley State University, University Center, Saginaw Charter Township, MI, 48710, USA

    Kaustav Misra & Shyamalendu Sarkar

  2. The Stevens Center for Family Business, Saginaw Valley State University, University Center, Saginaw Charter Township, MI, 48710, USA

    Kaustav Misra

  3. Department of Marketing, Entrepreneurship, Hospitality and Tourism, University of North Carolina at Greensboro, PO Box 26170, Greensboro, NC, 27402-6170, USA

    Esra Memili & Dianne H. B. Welsh

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  1. Kaustav Misra
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  2. Esra Memili
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  3. Dianne H. B. Welsh
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  4. Shyamalendu Sarkar
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Correspondence to Dianne H. B. Welsh.

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An earlier version of this paper has been accepted and presented at the Kauffman International Research and Policy Roundtable 2012, Liverpool, United Kingdom.

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Misra, K., Memili, E., Welsh, D.H.B. et al. The determinants of venture creation time: a cross-country perspective. Int Entrep Manag J 10, 253–276 (2014). https://doi.org/10.1007/s11365-012-0226-3

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