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Corruption, Regulatory Regime, and Entrepreneurship

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Corruption, Entrepreneurship, and Social Welfare

Part of the book series: SpringerBriefs in Entrepreneurship and Innovation ((BRIEFSENTRE))

Abstract

Starting a business requires licenses and permits as well as dealing with other regulations. These regulations vary vastly across country. Prior research indicates that regulatory procedures and administrative burden deter entrepreneurial activity. In this chapter we examine how corruption and regulations can interact to influence female entrepreneurial activity. Our analysis suggests that inefficient regulations can create necessity for corruption in order to avoid being exploited by the government officials and engage in entrepreneurship.

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Notes

  1. 1.

    Lian et al. (2011) presented how firms’ investment and cash-holding decisions are influenced during financial crisis and financial constraints.

  2. 2.

    Carpenter and Petersen (2002) found that internal financing is a cheaper source for financing than external financing.

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Authors and Affiliations

  1. College of Business and Entrepreneurship, University of Texas Rio Grande Valley, Brownsville, TX, USA

    Farzana Chowdhury

  2. School of Public & Environmental Affairs, Indiana University, Bloomington, IN, USA

    Sameeksha Desai & David B. Audretsch

Authors
  1. Farzana Chowdhury
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  2. Sameeksha Desai
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  3. David B. Audretsch
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Chowdhury, F., Desai, S., Audretsch, D.B. (2018). Corruption, Regulatory Regime, and Entrepreneurship. In: Corruption, Entrepreneurship, and Social Welfare. SpringerBriefs in Entrepreneurship and Innovation. Springer, Cham. https://doi.org/10.1007/978-3-319-64916-0_5

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