abstract: 'There are a number of factors that can hinder the path of

  entrepreneurship development and the literature highlighted the fact

  that taxes are one of the most important barriers for entrepreneurs.

  This paper aims at identifying the relationship between tax rates and

  entrepreneurship and to establish the impact of tax rates on

  entrepreneurs considering their motivations (necessity, opportunity or

  improvement-driven opportunity). The research focuses on a sample of 46

  countries grouped according to their income level, for a period of eight

  years (2012-2019). In order to test our hypotheses, we use multiple

  linear regression based on balanced panel data and we consider, as

  dependent variables, indicators that measure entrepreneurship and

  entrepreneurial motivations (early-stage entrepreneurial activity,

  necessity-driven entrepreneurs, opportunity-driven entrepreneurs,

  improvement-driven opportunity entrepreneurs, and motivational index).

  As independent variables, we consider indicators that measure the tax

  rates supported by entrepreneurs (total tax and contribution rate,

  profit tax, labor tax and contributions, and other taxes payable by

  businesses). The results show that tax rates play a key role in

  fostering the creation of new companies. Moreover, the impact is

  different, depending on the entrepreneurs'' motivations. Entrepreneurs

  motivated by necessity are positively related to total tax and

  contribution rate, while those motivated by opportunity are negatively

  related with this indicator. Therefore, tax rates discourage the

  entrepreneurs that seek innovation, but they do not affect those that do

  not have other options to obtain the necessary income for living.'
affiliation: 'Rusu, VD (Corresponding Author), Alexandru Ioan Cuza Univ, Inst Interdisciplinary
  Res, Dept Social Sci \& Humanities, Iasi, Romania.

  Rusu, Valentina Diana, Alexandru Ioan Cuza Univ, Inst Interdisciplinary Res, Dept
  Social Sci \& Humanities, Iasi, Romania.

  Dornean, Adina, Alexandru Ioan Cuza Univ, Fac Econ \& Business Adm, Dept Finance
  Money \& Publ Adm, Iasi, Romania.'
author: Rusu, Valentina Diana and Dornean, Adina
author-email: valentinadiana.ig@gmail.com
author_list:
- family: Rusu
  given: Valentina Diana
- family: Dornean
  given: Adina
da: '2023-09-28'
doi: 10.47743/saeb-2023-0025
eissn: 2501-3165
files: []
issn: 2501-1960
journal: SCIENTIFIC ANNALS OF ECONOMICS AND BUSINESS
keywords: 'tax rate; entrepreneurial motivations; necessity entrepreneurs;

  opportunity entrepreneurs; panel data analysis'
keywords-plus: 'SELF-EMPLOYMENT; NECESSITY ENTREPRENEURSHIP; INCOME TAXATION;

  OPPORTUNITY; POLICY; INTENTIONS; ALLOCATION; DRIVERS; MODEL'
language: English
month: JUN
number: '2'
number-of-cited-references: '82'
orcid-numbers: Rusu, Valentina/0000-0002-5974-9150
pages: 277-299
papis_id: 330554f8f1dafde093074c61fe5e77fd
ref: Rusu2023dotax
researcherid-numbers: Rusu, Valentina/T-2252-2018
times-cited: '0'
title: Do Tax Rates Matter for Entrepreneurial Motivations? An Empirical Approach
type: article
unique-id: WOS:001032516400007
usage-count-last-180-days: '0'
usage-count-since-2013: '0'
volume: '70'
web-of-science-categories: Economics
year: '2023'