World Encyclopedia of Entrepreneurship
Show Less

World Encyclopedia of Entrepreneurship

Edited by Léo-Paul Dana

This comprehensive reference work, written by some of the most eminent academics in the field, contains entries on numerous aspects of entrepreneurship.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 13: Entrepreneurship Policy

David B. Audretsch


David B. Audretsch 1 INTRODUCTION A generation of management and economics scholars such as Chandler (1977; 1990) concluded that there was little room for entrepreneurship in the context of starting a new firm, to generate efficiency and ultimately business and managerial success. Schumpeter (1942: 132) similarly concluded that, due to scale economies in the production of new economic knowledge, large corporations would not only have the innovative advantage over small and new enterprises, but that ultimately the economic landscape would consist only of giant corporations: ‘Innovation itself is being reduced to routine. Technological progress is increasingly becoming the business of teams of trained specialists who turn out what is required and make it work in predictable ways.’ Accordingly, a generation of scholars suggested that public policy should focus exclusively on the large corporation. For example, Galbraith (1979: 93–94) argued that entrepreneurship was disappearing in the contemporary economy, where the great entrepreneurs of the Industrial Revolution were replaced by the hierarchical large corporation: ‘The great entrepreneur must, in fact, be compared in life with the male Alpis mellifera. He accomplishes his act of conception at the price of his own extinction.’ Thus, according to Galbraith (1979: 61), the entrepreneur ‘is a diminishing figure in the planning system. Apart from access to capital, his principal qualifications were imagination, capacity for decision and courage in risking money, including, not infrequently, his own. None of these qualifications is especially important for organizing intelligence or effective in competing with it.’ By contrast, it was...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.