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High Growth Entrepreneurs, Public Policies and Economic Growth

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Author Info

  • Erik Stam

    (University of Cambridge, Max Planck Institute of Economics Jena, Research group on Entrepreneurship, Economic Growth and Public Policy)

  • Kashifa Suddle

    (EIM Business and Policy Research)

  • S. Jolanda A. Hessels

    (EIM Business and Policy Research)

  • Andre van Stel

    ()
    (EIM Business and Policy Research, Erasmus University Rotterdam, Max Planck Institute of Economics, Research group on Entrepreneurship, Economic Growth and Public Policy)

Abstract

This paper investigates whether the presence of ambitious entrepreneurs is a more important determinant of national economic growth than entrepreneurial activity in general. We use data from the Global Entrepreneurship Monitor to test the extent to which high growth ambitions of entrepreneurs affect GDP growth for a sample of 36 countries. Our results suggest that ambitious entrepreneurship contributes more strongly to macro-economic growth than entrepreneurial activity in general. We find a particularly strong effect of high-expectation entrepreneurship for transition countries. These results are interpreted in light of the ongoing debate about public policies designed to stimulate high growth start-ups.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-019.

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Date of creation: 20 Jun 2007
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Handle: RePEc:jrp:jrpwrp:2007-019

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Keywords: entrepreneurial activity; high growth entrepreneurs; growth ambitions; high growth start-ups; public policy; economic growth;

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References

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  1. Marco Vivarelli, 2004. "Are All the Potential Entrepreneurs So Good?," Small Business Economics, Springer, Springer, vol. 23(1), pages 41-49, 08.
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Cited by:
  1. Andres Jung & Cecilia Plottier, 2011. "Firm growth in a regional trade integration context," ERSA conference papers ersa11p1502, European Regional Science Association.
  2. Naude, Wim, 2008. "Entrepreneurship in Economic Development," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2008/20, World Institute for Development Economic Research (UNU-WIDER).
  3. Julie Hermans & Marcus Dejardin & Johanna Vanderstraeten & Dendi Ramdani & Erik Stam & Arjen van Witteloostuijn, 2012. "Ambitious entrepreneurship: antecedents and consequences," Working Papers 1210, University of Namur, Department of Economics.
  4. Gries, Thomas & Naude, Wim, 2009. "When to Start a New Firm?: Modelling the Timing of Novice and Serial Entrepreneurs," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Acs, Zoltan J. & Wim Naud�, 2011. "Entrepreneurship, Stages of Development, and Industrialization," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. Nijkamp, Peter & van Hemert, Patricia, 2007. "Going for Growth; a Theoretical and Policy Framework," Papers, Economic and Social Research Institute (ESRI) DYNREG14, Economic and Social Research Institute (ESRI).
  7. Sander Wennekers & Jolanda Hessels & Chantal Hartog, 2009. "Global Entrepreneurship Monitor 2008 The Netherlands," Scales Research Reports, EIM Business and Policy Research A200914, EIM Business and Policy Research.
  8. Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers, Maastricht School of Management 2011/35, Maastricht School of Management.
  9. Sarah Kösters, 2010. "Subsidizing Start-Ups: Policy Targeting and Policy Effectiveness," Journal of Industry, Competition and Trade, Springer, Springer, vol. 10(3), pages 199-225, September.
  10. Bjuggren, Carl Magnus & Daunfeldt, Sven-Olov & Johansson, Dan, 2010. "Ownership and High-Growth Firms," Ratio Working Papers, The Ratio Institute 147, The Ratio Institute, revised 29 Sep 2010.

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