Cover -- Half-title -- Title -- Copyright -- Dedication -- Contents -- Figures -- Tables -- Preface -- Glossary of commonly used symbols -- VARIABLES -- INDEXES -- OTHER SYMBOLS -- ABBREVIATIONS OF ORGANISATIONS AND DATA-SETS -- 1 Introduction -- 1.1 Aims, motivation and scope of the book -- 1.2 Structure of the book -- 1.3 Definition and measurement issues -- 1.4 International evidence on self-employment rates and trends -- 1.4.1 The OECD countries -- 1.4.2 The transition economies of Eastern Europe -- 1.4.3 Developing countries -- 1.5 Self-employment incomes and income inequality -- 1.5.1 Incomes and relative incomes -- Measurement issues -- International evidence on relative average self-employment incomes and trends -- 1.5.2 Income inequality -- 1.5.3 Earnings functions -- Methods -- Results -- Extensions -- 1.6 Some useful econometric models -- 1.6.1 Occupational choice and probit/logit models -- 1.6.2 The structural probit model -- 1.6.3 Extensions to cross-section models of occupational choice -- 1.6.4 Issues arising from the use of time-series and panel data -- NOTES -- Part I Entrepreneurship: theories, characteristics and evidence -- 2 Theories of entrepreneurship -- 2.1 'Early' views about entrepreneurship -- 2.2 'Modern' economic theories -- 2.2.1 Introduction and some definitions -- 2.2.2 Homogeneous individuals -- Static models of risk, risk aversion and the equilibrium number of entrepreneurs -- Dynamic models of risky entrepreneurship with costly switching -- 2.2.3 Heterogeneous entrepreneurial ability -- The static Lucas model -- The dynamic Lucas model -- Variants and extensions to the Lucas model -- 2.2.4 Heterogeneous risk aversion -- 2.3 Conclusion -- NOTES -- 3 Characteristics of entrepreneurs and the environment for entrepreneurship -- 3.1 Relative earnings, human and social capital -- 3.1.1 Earnings differentials.

3.1.2 Human capital -- Age and experience -- Education -- 3.1.3 Social capital -- 3.2 Personal characteristics and family circumstances -- 3.2.1 Marital status -- 3.2.2 Ill-health and disability -- 3.2.3 Psychological factors -- Entrepreneurial traits -- Love of independence and job satisfaction -- Over-optimism -- 3.2.4 Risk attitudes and risk -- 3.2.5 Family background -- 3.3 Entrepreneurship and macroeconomic factors -- 3.3.1 Economic development and changing industrial structure -- Economic development -- Changing industrial structure -- 3.3.2 Unemployment -- Cross-section evidence -- Time-series and panel data evidence -- Conclusion: reconciling the results -- 3.3.3 Regional factors -- 3.3.4 Government policy variables -- Minimum wages and employment protection -- Government benefits -- Interest rates -- The 'enterprise culture': a British myth? -- 3.4 Conclusion -- NOTES -- 4 Ethnic minority and female entrepreneurship -- 4.1 Ethnic minority entrepreneurship -- 4.1.1 Discrimination -- Employer discrimination -- Discrimination in the capital markets -- Consumer discrimination -- 4.1.2 Positive factors -- 4.1.3 Conclusion -- 4.2 Female entrepreneurship -- 4.2.1 Explaining female self-employment rates -- 4.2.2 Female self-employed earnings -- 4.2.3 Conclusion -- 4.3 Immigration and entrepreneurship -- NOTES -- Part II Financing entrepreneurial ventures -- 5 Debt finance for entrepreneurial ventures -- 5.1 Models of credit rationing and under-investment -- 5.1.1 Type I credit rationing -- 5.1.2 Type II credit rationing and under-investment -- The Stiglitz-Weiss model -- Other models of Type II credit rationing -- 5.1.3 Arguments against the credit rationing hypothesis -- 5.1.4 Conclusion: evaluating the theoretical case for credit rationing -- 5.2 Over-investment -- 5.3 Multiple sources of inefficiency in the credit market -- 5.4 Conclusion.

NOTES -- 6 Other sources of finance -- 6.1 Informal sources of finance -- 6.1.1 Family finance -- 6.1.2 Micro-finance schemes -- 6.1.3 Credit co-operatives, mutual guarantee schemes and trade credit -- Credit co-operatives and Roscas -- Mutual Guarantee Schemes -- Trade credit -- 6.2 Equity finance -- 6.2.1 Introduction -- 6.2.2 The scale of the equity finance market for entrepreneurs -- 6.2.3 Factors affecting the availability of equity finance for entrepreneurs -- 6.2.4 Equity rationing, funding gaps and under-investment -- 6.2.5 Policy recommendations -- 6.3 Conclusion -- NOTES -- 7 Evidence of credit rationing -- 7.1 Tests of Type I rationing -- 7.1.1 The Evans and Jovanovic (1989) model -- 7.1.2 Effects of assets on becoming or being self-employed -- 7.1.3 Effects of assets on firm survival -- 7.1.4 Effects of assets on investment decisions -- 7.2 Critique -- 7.3 Tests of Type II credit rationing -- NOTES -- Part III Running and terminating an enterprise -- 8 Labour demand and supply -- 8.1 Entrepreneurs as employers -- 8.1.1 Evidence about self-employed 'job creators' -- 8.1.2 Evidence about job creation by small firms -- 8.2 Entrepreneurs as suppliers of labour -- 8.2.1 Hours of work -- Explaining entrepreneurs' labour supply -- Ageing and entrepreneurs' labour supply -- 8.2.2 Retirement -- NOTES -- 9 Growth, innovation and exit -- 9.1 Jovanovic's (1982) dynamic selection model -- 9.2 Growth and innovation -- 9.2.1 Gibrat's Law and extensions -- 9.2.2 Evidence on growth rates -- 9.2.3 Innovation -- 9.3 Exit -- 9.3.1 Survival rates and their distribution -- 9.3.2 Two useful econometric models of firm survival -- Probit and logit models -- Hazard models -- 9.3.3 Determinants of entrepreneurial survival and exit -- 9.4 Conclusion -- NOTES -- 10 Government policy: issues and evidence -- 10.1 Credit market interventions.

10.1.1 Loan Guarantee Schemes -- Organisation -- Theoretical perspectives -- Evaluation -- 10.1.2 Other interventions -- 10.2 Taxation, subsidies and entrepreneurship: theory -- 10.3 Tax evasion and avoidance: theory -- 10.4 Taxation, tax evasion and entrepreneurship: evidence -- 10.4.1 Income under-reporting by the self-employed -- 10.4.2 Tax, tax evasion and occupational choice: econometric evidence -- 10.5 Direct government assistance and regulation -- 10.5.1 Entrepreneurship schemes targeted at the unemployed -- 10.5.2 Information-based support for start-ups -- 10.5.3 Regulation and other interventions -- 10.6 Conclusion -- NOTES -- Part IV Government policy -- 11 Conclusions -- 11.1 Summary -- 11.2 Implications for policy-makers -- NOTE -- References -- Author index -- Subject index.