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The ineffectiveness of entrepreneurship policy: is policy formulation to blame?

Author

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  • Norin Arshed

    ()

  • Sara Carter

    ()

  • Colin Mason

    ()

Abstract

Entrepreneurship policy has been criticised for its lack of effectiveness. Some scholars, such as Scott Shane in this journal, have argued that it is ‘bad’ public policy. But this simply begs the question why the legislative process should generate bad policy? To answer this question this study examines the UK’s enterprise policy process in the 2009–2010 period. It suggests that a key factor for the ineffectiveness of policy is how it is formulated. This stage in the policy process is seldom visible to those outside of government departments and has been largely ignored by prior research. The application of institutional theory provides a detailed theoretical understanding of the actors and the process by which enterprise policy is formulated. We find that by opening up the ‘black box’ of enterprise policy formulation, the process is dominated by powerful actors who govern the process with their interests. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Norin Arshed & Sara Carter & Colin Mason, 2014. "The ineffectiveness of entrepreneurship policy: is policy formulation to blame?," Small Business Economics, Springer, vol. 43(3), pages 639-659, October.
  • Handle: RePEc:kap:sbusec:v:43:y:2014:i:3:p:639-659
    DOI: 10.1007/s11187-014-9554-8
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Henley, Andrew, 2019. "Transitioning from Solo Self-Employed to Microbusiness Employer: Local Economic Environment or Owner Characteristics?," IZA Discussion Papers 12189, Institute of Labor Economics (IZA).
    2. repec:bla:chinae:v:26:y:2018:i:3:p:88-108 is not listed on IDEAS
    3. Ahl, Helene & Nelson, Teresa, 2015. "How policy positions women entrepreneurs: A comparative analysis of state discourse in Sweden and the United States," Journal of Business Venturing, Elsevier, vol. 30(2), pages 273-291.
    4. repec:kap:jbuset:v:145:y:2017:i:2:d:10.1007_s10551-015-2854-3 is not listed on IDEAS
    5. Jacob Hörisch & Jana Kollat & Steven A. Brieger, 2017. "What influences environmental entrepreneurship? A multilevel analysis of the determinants of entrepreneurs’ environmental orientation," Small Business Economics, Springer, vol. 48(1), pages 47-69, January.
    6. repec:krk:eberjl:v:4:y:2016:i:1:p:129-159 is not listed on IDEAS
    7. Dimitratos, Pavlos & Buck, Trevor & Fletcher, Margaret & Li, Nicolas, 2016. "The motivation of international entrepreneurship: The case of Chinese transnational entrepreneurs," International Business Review, Elsevier, vol. 25(5), pages 1103-1113.
    8. Magnus Hoppe, 2016. "Policy and entrepreneurship education," Small Business Economics, Springer, vol. 46(1), pages 13-29, January.
    9. Magnus Hoppe, 2016. "Policy and entrepreneurship education," Small Business Economics, Springer, vol. 46(1), pages 13-29, January.
    10. repec:kap:sbusec:v:53:y:2019:i:1:d:10.1007_s11187-018-0021-9 is not listed on IDEAS
    11. repec:jpe:journl:1498 is not listed on IDEAS
    12. Riccardo Fini & Kun Fu & Marius Tuft Mathisen & Einar Rasmussen & Mike Wright, 2017. "Institutional determinants of university spin-off quantity and quality: a longitudinal, multilevel, cross-country study," Small Business Economics, Springer, vol. 48(2), pages 361-391, February.
    13. Arshed, Norin, 2017. "The origins of policy ideas: The importance of think tanks in the enterprise policy process in the UK," Journal of Business Research, Elsevier, vol. 71(C), pages 74-83.
    14. repec:taf:entreg:v:29:y:2017:i:1-2:p:94-115 is not listed on IDEAS
    15. Arenal, Alberto & Feijoo, Claudio & Moreno, Ana & Ramos, Sergio & Armuña, Cristina, 2019. "Text mining the entrepreneurship policy agenda in the EU: From naïveté into reality," 30th European Regional ITS Conference, Helsinki 2019 205163, International Telecommunications Society (ITS).
    16. Mauricio Oyarzo & Gianni Romani & Miguel Atienza & Marcelo Lufin, 2015. "Spatio-temporal persistence of municipal rates of business start-ups in Chile," Documentos de Trabajo en Economia y Ciencia Regional 61, Universidad Catolica del Norte, Chile, Department of Economics, revised Jul 2015.
    17. Crawford, G. Christopher & Aguinis, Herman & Lichtenstein, Benyamin & Davidsson, Per & McKelvey, Bill, 2015. "Power law distributions in entrepreneurship: Implications for theory and research," Journal of Business Venturing, Elsevier, vol. 30(5), pages 696-713.
    18. repec:kap:sbusec:v:51:y:2018:i:3:d:10.1007_s11187-017-9946-7 is not listed on IDEAS
    19. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-016-9822-x is not listed on IDEAS

    More about this item

    Keywords

    Enterprise policy; Formulation; Institutional theory; Institutional entrepreneur; Legitimacy; Power; Qualitative; L26;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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