Are the business regulations creating new entrepreneurship?

Abstract

This article presents the relationship between business regulations and entrepreneurial volumes in sixty-three countries, using data from the World Bank Doing Business (WBDB) and Global Entrepreneurship Monitor (GEM). Based on the results of the model, it is concluded that the administrative complexities of creating a company are not related to the levels of entrepreneurship, coinciding with the findings obtained by Baumol (1990) and Capelleras et al. (2008), which establish that the regulations do not originate volumes of enterprises, but only produce changes in their distribution between formal and informal companies. In addition to the above, the new finding of this article focuses on separating the explanatory variables of control from the scope of supply and demand of the enterprise, which allowed confirming - adding other explanatory variables - what was exposed by Baumol (1990) and Capelleras et al. (2008), among other authors.