Corruption's Effect on Business Venturing Within the United States

In developing countries with high levels of corruption, people are often forced into small-business venturing or survivalist entrepreneurship because larger, more efficient firms do not exist. In developed countries, however, low corruption means that people choose entrepreneurship as a better means...

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Bibliographic Details
Published in:	The American journal of economics and sociology Vol. 68; no. 5; pp. 1135 - 1152
Main Authors:	Mitchell, David T., Campbell, Noel D.
Format:	Journal Article
Language:	English
Published:	Malden, USA Blackwell Publishing Inc 01-11-2009 Wiley Subscription Services Wiley-Blackwell Blackwell Publishing Ltd
Subjects:	Business corruption Business ethics Business structures Coefficients Corruption Corruption in government Developing Countries Economic Problems Economic sociology Entrepreneurship General studies. Economic systems Government corruption Impact analysis Industrial Societies Innovation Institutions Judicial corruption Management Political corruption Population density Small and medium sized enterprises Small business Small Businesses Sociology Sociology of economy and development Sociology of organizations and enterprises. Bureaucracy and administration Sociology of work and sociology of organizations Startups Studies Survivalism U.S.A Unemployment United States of America Venture capital United States Of America United States > US Corruption Business Creation Federal administration Entrepreneurship Impact analysis
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Summary:	In developing countries with high levels of corruption, people are often forced into small-business venturing or survivalist entrepreneurship because larger, more efficient firms do not exist. In developed countries, however, low corruption means that people choose entrepreneurship as a better means of innovating. In this article we use federal convictions of state and local officials and the Small Business Administration's firm formation data to test whether corruption within the United States forces some people into business venturing. We find that business venturing within the United States is caused in part by corruption.
Bibliography:	ark:/67375/WNG-5XF1CK8B-K ArticleID:AJES665 istex:736FD1C62CB32191E091907477A9E08472C04CA1 David T. Mitchell is at the Department of Economics and Finance, Mitchell College of Business, University of South Alabama, Mobile, AL 36688; e‐mail Professor Mitchell's interests include the evolution of social institutions and the history of taxation. Professor Campbell's interests include economic development, public finance, and entrepreneurship. Noel D. Campbell is with EFIRM, University of Central Arkansas, 201 Donaghey Avenue, Conway, AR 72035; e‐mail DavidMitchell@usouthal.edu ncampbell@uca.edu ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 ObjectType-Article-1 ObjectType-Feature-2
ISSN:	0002-9246 1536-7150
DOI:	10.1111/j.1536-7150.2009.00665.x