Since we are now starting with our projects, I found this article interesting, because it shows the importance of policy to entrepreneurship and presents data that shows that regulation indeed plays a crucial role in the individual decision to start a new business.
The paper states that amongst several factors impacted by regulation, working status, business skills and social network all play a critical role. I think it goes to say that regulation is a double edged sword-it can support new businesses but can also constrain them. This is supported by a point mentioned in the paper’s conclusion, “specifically, regulation curbs the effects of social networks and business skills, while strengthens the effects of risk aversion. Thoughts?