<p>Economic theory suggests that numerous factors are affecting entrepreneurship (demographic, political, cultural, geographical, and economical). There has been a lot of research on this topic, and many factors have been identified as individually related to the level of entrepreneurship in a region or country. However, despite the fact that a large number of factors have been identified as individually related to new firm formation (NFF), no one has been able to give a definitive an-swer as to which factors are the most important for increased NFF and economic growth (Calido-ni et al. 2007). And differences across countries remain unexplored. (Freytag & Thurik 2007). This study takes a stab at both of these largely unexplored areas; trying to ascertain which vari-ables, out of 22 selected, appear to be the most relevant determinants of firm formation across countries today. Data on firm formation across countries from the WB‟s Entrepreneurship Survey was used to construct three measure of entrepreneurship. Stepwise regression was used to esti-mate the most significant variables. Three different measures of “entrepreneurship”, three mod-els, all yielded four significant variables in multivariate regression, some were overlapping be-tween the models for a total of eight variables found especially significant. One finding is particu-larly interesting in relation to Sweden; The cost of enforcing contracts was found to be one of the most important determinants of NFF, and since Sweden has relatively high costs of enforcing contracts; the combination of these two observation leads to a policy suggestion: If Sweden wants to increase NFF it should decrease the costs of enforcing contracts.</p>
| Identifer | oai:union.ndltd.org:UPSALLA/oai:DiVA.org:hj-10112 |
| Date | January 2008 |
| Creators | Kroksgård, Andreas |
| Publisher | Jönköping University, JIBS, Economics |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, text |
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