A Model of Destructive Entrepreneurship
AbstractThe current research on entrepreneurship as an economic phenomenon often assumes its desirability as a driver of economic development and growth. However, entrepreneurial talent can be allocated among productive, unproductive, and destructive activities. This process is theorized as driven by institutions. Although the tradeoff between productive and unproductive entrepreneurship has been examined, destructive entrepreneurship has been largely ignored. We build from existing theory and define destructive entrepreneurship as wealth-destroying. We propose three assumptions to develop a model of destructive entrepreneurship that presents the mechanisms through which entrepreneurial talent behaves in this manner. We present four key propositions on the nature and behavior of destructive entrepreneurship. We conclude by identifying policy and research streams that emerge from our model.
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Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Working Paper WP2010/34.
Length: 18 pages
Date of creation: 2010
Date of revision:
destructive entrepreneurship; entrepreneurship; allocation; rent-seeking; incentives; informal institutions;
Other versions of this item:
- NEP-ALL-2010-04-24 (All new papers)
- NEP-ENT-2010-04-24 (Entrepreneurship)
- NEP-HRM-2010-04-24 (Human Capital & Human Resource Management)
- NEP-SBM-2010-04-24 (Small Business Management)
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