Fostering entrepreneurship: the crucial role of monitoring schemes

Purpose The purpose of this paper is to investigate the effect government-led programs on engagement individuals in entrepreneurship. Design/methodology/approach authors worked with 16 European countries between 2003 and 2014 were able benefit from 2008 natural experiment (i.e. global financial crisis) produce a robust investigation using regression kink design (RKD). Findings work shows that are designed include monitoring schemes can significantly increase individuals' opportunity-driven found do not have same relevance for necessity-driven Therefore, believe difference occurs because avoids problems related moral hazard adverse selection when it comes choosing whether participate (or not) programs. Originality/value While important governments provide an enabling environment entrepreneurship, study showed all types public program positive results. In fact, has been demonstrated poorly-designed actually decrease likelihood engaging entrepreneurial activities. efficiency substantially improved, however, they schemes.