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A Model of Destructive Entrepreneurship

Author

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  • Sameeksha Desai
  • Zoltan J. Acs
  • Utz Weitzel

Abstract

The 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 allocation has important implications in the developing world, particularly for countries hosting conflict or recovering from conflict. The allocation of entrepreneurship is theorized as driven by institutions. Although the trade-off 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 research agendas and policy streams, with a focus on relevance to conflict and postconflict recovery.

Suggested Citation

  • Sameeksha Desai & Zoltan J. Acs & Utz Weitzel, 2013. "A Model of Destructive Entrepreneurship," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 20-40, February.
  • Handle: RePEc:sae:jocore:v:57:y:2013:i:1:p:20-40
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Zoltán J. Ács & Mary C. Boardman & Connie L. McNeely, 2015. "The social value of productive entrepreneurship," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 3, pages 42-53 Edward Elgar Publishing.
    2. Vladimirov, Zhelyu & Simeonova-Ganeva, Ralitsa & Ganev, Kaloyan, 2012. "Interaction of leading and supporting factors for the SME competitiveness," MPRA Paper 37251, University Library of Munich, Germany.
    3. Radosevic, Slavo & Yoruk, Esin, 2013. "Entrepreneurial propensity of innovation systems: Theory, methodology and evidence," Research Policy, Elsevier, vol. 42(5), pages 1015-1038.
    4. Tilman Brück & Patricia Justino & Charles Patrick MartinShields, 2017. "Conflict and development: Recent research advances and future agendas," WIDER Working Paper Series 178, World Institute for Development Economic Research (UNU-WIDER).
    5. repec:spr:intemj:v:13:y:2017:i:3:d:10.1007_s11365-016-0427-2 is not listed on IDEAS
    6. Frank R. Gunter, 2013. "The Political Economy of Iraq," Books, Edward Elgar Publishing, number 14293.
    7. Jonathan Levie & Erkko Autio & Zoltan Acs & Mark Hart, 2014. "Global entrepreneurship and institutions: an introduction," Small Business Economics, Springer, vol. 42(3), pages 437-444, March.
    8. Besnik A. Krasniqi & Sameeksha Desai, 2016. "Institutional drivers of high-growth firms: country-level evidence from 26 transition economies," Small Business Economics, Springer, vol. 47(4), pages 1075-1094, December.
    9. Sanders, Mark & Weitzel, Utz, 2010. "The Allocation of Entrepreneurial Talent and Destructive Entrepreneurship," WIDER Working Paper Series 046, World Institute for Development Economic Research (UNU-WIDER).
    10. Colin O’Reilly, 2014. "Investment and Institutions in Post-Civil War Recovery," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(1), pages 1-24, March.
    11. Maksim Belitski & Sameeksha Desai, 2016. "What drives ICT clustering in European cities?," The Journal of Technology Transfer, Springer, vol. 41(3), pages 430-450, June.
    12. Jamie D. Collins & Jeffery S. McMullen & Christopher R. Reutzel, 2016. "Distributive justice, corruption, and entrepreneurial behavior," Small Business Economics, Springer, vol. 47(4), pages 981-1006, December.
    13. Michael, Bryane, 2017. "The Effect of Competition Law on Brunei’s Small and Medium Enterprises," EconStor Preprints 169114, ZBW - German National Library of Economics.
    14. Frank R. Gunter, 2012. "A Simple Model of Entrepreneurship for Principles of Economics Courses," The Journal of Economic Education, Taylor & Francis Journals, vol. 43(4), pages 386-396, October.
    15. Marcus Dejardin & Helene Laurent, 2014. "Greasing the wheels of entrepreneurship? A complement according to entrepreneurial motives," Working Papers 1402, University of Namur, Department of Economics.
    16. Maksim Belitski & Farzana Chowdhury & Sameeksha Desai, 2016. "Taxes, corruption, and entry," Small Business Economics, Springer, vol. 47(1), pages 201-216, June.

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