The impact of educational levels on formal and informal entrepreneurship

  1. Jiménez Palmero, Alfredo
  2. Palmero Cámara, María Carmen
  3. González Santos, Josefa
  4. González Bernal, Jerónimo
  5. Jiménez Eguizábal, Juan Alfredo
Journal:
Business Research Quarterly

ISSN: 2340-9444,  2340-9436

Year of publication: 2015

Volume: 18

Issue: 3

Pages: 204-212

Type: Article

DOI: 10.1016/J.BRQ.2015.02.002 DIALNET GOOGLE SCHOLAR lock_openOpen access editor

More publications in: Business Research Quarterly

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Abstract

This paper studies the impact of formal education on entrepreneurship rates. We propose that different levels of education not only vary between each other in terms of their impact, but also according to whether we analysis either formal or informal entrepreneurship. Our results show that tertiary education increases formal entrepreneurship as a consequence of the higher self-confidence, lower perceived risk and enhanced human capital. At the same time, tertiary education also has a negative effect on informal entrepreneurship as it increases awareness of and sensitivity to the possible negative repercussions of this kind of activities. In addition, we show thatthe impact of secondary education on formal entrepreneurship is positive as well, although in this case the effect on informal entrepreneurship is not significant. Even though secondary education also increases awareness of the potential negative repercussions of informal entrepreneurship, this effect is counteracted by a lack of management skills.

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