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Public Policies To Support Entrepreneurship: Do They Contribute To Strengthen Smes Sector?

Author

Listed:
  • Dragos Dianu

    (Doctoral School of Economics, Faculty of Economic Sciences, University of Oradea, Oradea, Romania)

  • Monica (Cenan) Ciucos

    (Doctoral School of Economics, Faculty of Economic Sciences, University of Oradea, Oradea, Romania)

  • Alina Badulescu

    (Department of Economics and Business, Faculty of Economic Sciences, University of Oradea, Oradea, Romania)

  • Daniel Badulescu

    (Department of Economics and Business, Faculty of Economic Sciences, University of Oradea, Oradea, Romania)

Abstract

The role of entrepreneurship and private initiative in economic development and jobs creation, for the development of a dynamic and innovative small and medium enterprises (SME) sector is widely recognized in economic theory and practice. Entrepreneurship do not only contribute to productivity improvements, but it could also help finding practical solutions to social and environmental challenges, climate change, global economic or health crises. However, despite this widespread recognition, entrepreneurship relatively recently becomes a concern for the decision-makers’, and in many cases the support measures are partial, difficult to understand and access, marked by bureaucracy and over-regulation, even in developed countries. Therefore, the active involvement of policy makers, the contribution of public or private support structures, education, public awareness of the benefits of entrepreneurship and small and medium-sized businesses are essential. Building policies and strategies to support entrepreneurship starts from objective characteristics, but it must be adapted to the specific conditions of each country, the profile, size and structure of the business sector in that country (or region) in order to enhance its contribution to development goals. In our article we state that public policies for entrepreneurship must find a balance between stimulating the new firms’ creation, the size of existing ones and the impetus given to the sub-sector of dynamic, innovative companies, high growth-oriented. In the case of the developed countries analysed here, characterized by opportunity-driven entrepreneurship, the objectives of public policies to support entrepreneurship and SMEs should not excessively focus on setting up new companies. Rather, they must insist on creating a business-friendly environment and promoting an entrepreneurial culture, on the efficient functioning of support structures and networks, on encouraging the establishment and development of companies based on high knowledge, on strengthening and growth of the existing SMEs.

Suggested Citation

  • Dragos Dianu & Monica (Cenan) Ciucos & Alina Badulescu & Daniel Badulescu, 2021. "Public Policies To Support Entrepreneurship: Do They Contribute To Strengthen Smes Sector?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 39-48, July.
    • Handle: RePEc:ora:journl:v:1:y:2021:i:1:p:39-48
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    References listed on IDEAS

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    More about this item

    Keywords

    entrepreneurship; SMEs; public policy support; EU.;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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