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Productive, Unproductive and Destructive Entrepreneurship: A Theoretical and Empirical Exploration

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  • Arnis Sauka

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    Abstract

    Drawing on Baumol’s concepts of productive, unproductive and destructive entrepreneurship and relevant amendments, this thesis aims to contribute to the entrepreneurship literature by developing a conceptual framework which allows operationalising the concepts for empirical assessment. Furthermore, using data from longitudinal survey, author makes one of the first attempts to address the concepts empirically. The results provide with support for the conceptual framework highlighting the importance to shift the focus from firms’ activities to output on both, venture and societal levels, short and long term, when concepts are addressed empirically. Overall findings suggest that productive entrepreneurs are those who are less involved in behaviour such as tax avoidance or illegal business and show a higher level of entrepreneurial orientation.

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    File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp917.pdf
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    Bibliographic Info

    Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp917.

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    Length: pages
    Date of creation: 01 Mar 2008
    Date of revision:
    Handle: RePEc:wdi:papers:2008-917

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    Related research

    Keywords: value creation; productive; unproductive and destructive entrepreneurship; transition context; small firms;

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    1. Robert W. Fairlie, 1999. "Drug Dealing and Legitimate Self-Employment," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 88, Northwestern University/University of Chicago Joint Center for Poverty Research.
    2. D.B. Audretsch & M.A. Carree & A.J. van Stel & A.R. Thurik, 2000. "Impeded Industrial Restructuring: The Growth Penalty," Tinbergen Institute Discussion Papers, Tinbergen Institute 00-095/3, Tinbergen Institute.
    3. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195183511, October.
    4. Russell S. Sobel, 2006. "Testing Baumol: Institutional Quality and the Productivity of Entrepreneurship," Working Papers 06-06 Classification-, Department of Economics, West Virginia University.
    5. Karlsson, Charlie & Johansson, Börje, 2006. "Regional Development and Knowledge," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 76, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    6. Davidsson, Per & Henrekson, Magnus, 2000. "Determinants of the Prevalence of Start-ups and High-Growth Firms," Working Paper Series in Economics and Finance 381, Stockholm School of Economics, revised 26 May 2002.
    7. Earle, John S. & Sakova, Zuzana, 2000. "Business start-ups or disguised unemployment? Evidence on the character of self-employment from transition economies," Labour Economics, Elsevier, Elsevier, vol. 7(5), pages 575-601, September.
    8. David B. Audretsch & Roy Thurik, 2001. "Linking Entrepreneurship to Growth," OECD Science, Technology and Industry Working Papers 2001/2, OECD Publishing.
    9. Ruta Aidis & , Julia Korosteleva & , Tomasz Mickiewicz, 2008. "Entrepreneurship in Russia," Working Papers, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL) 88, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
    10. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    11. Aidis, Ruta & van Praag, Mirjam, 2007. "Illegal entrepreneurship experience: Does it make a difference for business performance and motivation?," Journal of Business Venturing, Elsevier, vol. 22(2), pages 283-310, March.
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