Edited by Robert F. Salvino Jr., Michael T. Tasto and Gregory M. Randolph
Chapter 2: Institutions, entrepreneurship and economic growth
In the last few decades entrepreneurship has slowly but steadily gained importance in public discussions about income growth. The more economic growth in high-income countries has leveled-off, the more interested policymakers have become in finding new ways to ignite growth. At the same time, there has been a realization that foreign aid in its current form won’t be able to lift the poorest countries from poverty. There seems to be political consensus that entrepreneurship could provide a partial solution to the economic problems of both the developed and developing world. The above raises three questions, though. First, what is the connection between entrepreneurship and income growth? Second, are all types of entrepreneurship equally good in creating growth? Third, in terms of public policies, what does it take to get entrepreneurs going? In this chapter I will explore each question at some length, providing an overview of the current findings in the field. The main argument underpinning the narrative is that society’s institutional set-up is absolutely critical for any entrepreneurial renaissance. Getting that set-up wrong will guarantee that entrepreneurs will be few and far between. Fortunately, plenty of evidence has accumulated over the last few decades to aid the policymakers to get the institutional policies right. Who are entrepreneurs? While the exact definition is hard to pin down, some attributes can be easily listed. Entrepreneurs are the ones that have shown a capacity for action.
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.