The development of entrepreneurial activity is essential to achieve sustainable economic growth and development in the euro area. However, the European institutions have not given the same importance to the failure of entrepreneurial activity and its causes. With this in mind, and considering the countries of the euro area, on the basis of Eurostat's business demography data for the years 2008 to 2016, an analysis of panel data was conducted relating the early failure of self-employed entrepreneurs to their macroeconomic and institutional environment. The results thus show a negative relationship with respect to the quality of formal institutions, entrepreneurial culture and social norms, the efficiency of goods markets and entrepreneurial freedom. On the other hand, a positive relationship is shown with respect to the high status assigned to successful entrepreneurs.
The decision between whether to become self-employed or to work as an employee is a dilemma faced by an increasing number of Spanish professionals. This research investigates the sociodemographic profile of Spanish self-employed workers, and examines the factors in the economic and institutional environment that influence their decision to become self-employed. The sociodemographic characteristics that make up the profile of entrepreneurs who decide to become self-employed are presented using microdata the Spanish Labour Force Survey, and based on a logistic regression model. The influence of the economic and institutional environment on this tendency towards entrepreneurship is also studied. The results enable us to conclude that favourable factors for entrepreneurship are previous experience as an entrepreneur, the sector in which the individual wishes to be an entrepreneur, the professional’s age and sex, their marital status, and the maximum age at they completed their education. As for the environmental perspective, the relative size of the economy and the level of bank credit in the autonomous community of Spain the entrepreneur wishes to do business has a positive influence on the tendency towards entrepreneurship.
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