The Determinants of Latent Entrepreneurship in Japan

This study is the first attempt to examine thedeterminants of latent entrepreneurship across regions in Japan. In the reviewof literature on latent entrepreneurship, nascent entrepreneurs are defined aspersons wishing or preparing to be self-employed. Next, data from the 1997Employment Status Survey (ESS) are used to measure the rate of latententrepreneurship. The data reveal a number of key findings, including the observation thattotal cash earnings and the unemployment rate have positive effects on latententrepreneurship. The high density of female workers also had a positive effecton latent entrepreneurship. A third finding suggests that nascent entrepreneursare attracted to high-density regions of college graduates, venture businesses,technical workers, and service workers. As a whole, the results suggest thatthe government ought to promote startups in high-density regions of establishedfirms and human capital. Also, since female workers show a willingness tobe self-employed, the government should offer support to reduce their financialrisks. (SAA)