Abstract

Hybrid entrepreneurship, which describes people who retain their wage employment while starting a business (Folta, Delmar, Wennberg, 2010), gives the possibility of testing a business idea without facing the whole income risk of full-time self-employment. Hybrid entrepreneurs play an important role in economic growth, because they represent a significant share of total firm entry across countries (Minniti, 2010). However, their responsiveness to reforms and their role in public policy has not yet been addressed. We evaluate the entry deregulation policy “System for Rapid Opening of Enterprises” (SARE) in Mexico, focusing on the responsiveness of both hybrid and full-time entrepreneurs.

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