Entrepreneurship and Institutions
AbstractIn this paper entrepreneurs are defined as agents who bring about economic change by combining their own effort with other factors of production in search of economic rents. The institutional setup is argued to determine both the supply and direction of entrepreneurial activity. Four key institutions are explored more closely: property rights protection, savings policies, taxation and the regulation of labor markets. Institutions have far-reaching effects on entrepreneurship, and they largely determine whether or not entrepreneurial activity will be socially productive. Due to the responsiveness of entrepreneurship to the institutional setup it is maintained that in-depth analyses of specific institutions are required in order to further our understanding of the determinants of entrepreneurial behavior and the economic effects of entrepreneurship. The paper also demonstrates that it is problematic to use self-employment as an empirical proxy for productive entrepreneurship.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 707.
Length: 29 pages
Date of creation: 04 Jun 2007
Date of revision:
Publication status: Published as Henrekson, Magnus, 'Entrepreneurship and Institutions' in Comparative Labor Law & Policy Journal, 2007, pages 717-742.
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More information through EDIRC
Entrepreneurship; Industrial policy; Innovation; Institutions; Labor security; Property rights; Regulation; Self-employment; Tax policy;
Find related papers by JEL classification:
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- P14 - Economic Systems - - Capitalist Systems - - - Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-18 (All new papers)
- NEP-CSE-2007-06-18 (Economics of Strategic Management)
- NEP-ENT-2007-06-18 (Entrepreneurship)
- NEP-INO-2007-06-18 (Innovation)
- NEP-IPR-2007-06-18 (Intellectual Property Rights)
- NEP-REG-2007-06-18 (Regulation)
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