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

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Author Info
Arnis Sauka ()
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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Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number wp917.

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

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

Find related papers by JEL classification:
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
E26 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Audretsch, David B, et al, 2002. "Impeded Industrial Restructuring: The Growth Penalty," Kyklos, Blackwell Publishing, vol. 55(1), pages 81-97.
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  2. David B. Audretsch & Roy Thurik, 2001. "Linking Entrepreneurship to Growth," OECD Science, Technology and Industry Working Papers 2001/2, OECD, Directorate for Science, Technology and Industry. [Downloadable!]
  3. 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, vol. 7(5), pages 575-601, September. [Downloadable!] (restricted)
  4. Sobel, Russell S., 2008. "Testing Baumol: Institutional quality and the productivity of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 641-655, November. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
  7. Kirsten Foss & Nicolai J. Foss, . "Economic Organization and the Tradeoffs between Productive and Destructive Entrepreneurship," IVS/CBS Working Papers 00-10, Department of Industrial Economics and Strategy, Copenhagen Business School. [Downloadable!]
  8. Jovanovic, Boyan, 2001. " New Technology and the Small Firm," Small Business Economics, Springer, vol. 16(1), pages 53-55, February. [Downloadable!] (restricted)
  9. 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. [Downloadable!]
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