This paper suggests some empirical evidence that tax policies as well as spin-off environments are key policy variables to explain the differences in entrepreneurship across  OECD countries. It also suggests some policy implications to encourage entrepreneurship manifestation. According to my empirical analysis, entrepreneurship is discouraged as tax burden or regulation on the spin-offs is enhanced. However, I could not find any strong evidence for the population structure, as a determinant of entrepreneurship, such as the ratio of 65 years old or above in the population.

In order to enhance the growth potential of Korean economy in the process of overcoming the global economic crisis, it is implied that the tax burden should be reduced and the environment for starting businesses should be continuously and drastically improved. In addition, the effective policy instrument fostering entrepreneurship should be found in both tax policy and starting business environment rather than rejuvenating the population structure by increasing birth rate in Korea.