This project aims to better understand the effects of financial shocks on entrepreneurial decisions, along with the implications for job creation, innovation, and economic growth.
Starting new businesses is key to creating jobs, boosting innovation, and helping economies grow. But in recent years, fewer people in Norway—and many other countries—are choosing to become entrepreneurs.
This is surprising for a country like Norway, which has strong institutions, a healthy economy, and good access to finance. In fact, Norway now has one of the lowest rates of early-stage entrepreneurship among comparable nations.
This project asks: Why is this happening? And how can we reverse the trend?
Participants
More about the project
One possible reason why Norway has such a low rate of early-stage entrepreneurship is that financial shocks—like sudden changes in oil prices, housing prices, or currency values—make it harder or riskier for people to start new companies.
For example, when house prices rise, potential entrepreneurs may find it easier to afford the upfront costs of starting a business, but productive entreprenaurs that do not own real estate may be discouraged or forced to start smaller-scale businesses. Or when oil prices fall, certain industries may struggle, discouraging investment and new ideas.
The green transition
Using data from Norway, this project will explore how these kinds of economic changes affect who becomes an entrepreneur, what kinds of businesses are started, and how this impacts jobs, innovation, and overall economic health.
Special attention is given to how these trends matter for Norway’s shift toward a greener, more sustainable economy. Encouraging the creation of green start-ups not only supports environmental goals but can also promote greater gender equality, as inclusive entrepreneurship policies have the potential to reduce existing gender gaps in business ownership and leadership.
Better policies
By uncovering the hidden barriers to entrepreneurship, the project aims to offer practical insights that can help shape better public policies. At the same time, it will push forward academic research by connecting big-picture economic questions with real-world individual decisions—offering value to both scholars and society at large.
Three work packages
We examine our research questions with different working packages (WP), outlined below:
- WP#1. RQ: Which entrepreneur characteristics lead to the creation of high-growth start-ups?
- WP#2. RQ. Are real estate price disruptions a barrier to entry into entrepreneurship? If so, what are the effects on employment, innovation, and growth?
- WP#3. RQ. How do oil price disruptions affect entrepreneurship? What are the channels, and the effects on employment, innovation, and growth?
