Do Tax Rates Matter for Entrepreneurial Motivations? An Empirical Approach

There are a number of factors that can hinder the path entrepreneurship development and literature highlighted fact taxes one most important barriers for entrepreneurs. This paper aims at identifying relationship between tax rates to establish impact on entrepreneurs considering their motivations (necessity, opportunity or improvement-driven opportunity). The research focuses sample 46 countries grouped according income level, period eight years (2012-2019). In order test our hypotheses, we use multiple linear regression based balanced panel data consider, as dependent variables, indicators measure entrepreneurial (early-stage activity, necessity-driven entrepreneurs, opportunity-driven motivational index). As independent consider supported by (total contribution rate, profit tax, labor contributions, other payable businesses). results show play key role in fostering creation new companies. Moreover, is different, depending entrepreneurs’ motivations. Entrepreneurs motivated necessity positively related total while those negatively with this indicator. Therefore, discourage seek innovation, but they do not affect have options obtain necessary living.