Abstract
Focusing on individuals with prior entrepreneurial experience, this study investigates the impact of firms’ external stimuli at the country level - labour market regulations- on the re-entry decision of the experienced entrepreneurs into self- employment and become a habitual entrepreneur. The analyses using multi-level modelling techniques show that the rigidity of labour market regulations does not influence the re-entry decision of individuals with prior entrepreneurial experience directly. The hypothesised relationship is moderated by individuals’ work status at the time of re-entry. Individuals holding wage jobs are more likely to engage in entrepreneurial activity once again when they face stringent labour market regulations than those who are not employed. To provoke further thinking and research in the field of habitual entrepreneurship, I discuss and provide tentative explanations to the observation that novice and habitual entrepreneurs react differently to labour market regulations.
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