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The coupling between entrepreneurship and public policy: tight in develped countries but loose in developing countries

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  • Thomas Schøtt
  • Kent Wickstrøm Jensen

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Abstract

In this paper we compare the coupling between entrepreneurship policy and entrepreneurship activity in developed and developing countries. Using new institutional arguments, we argue that developing countries will are prone to implement policies that (1) are based on experiences in developed countries which have not proven to transfer fittingly to developing economies, (2) are only partly implemented and are not internally consistent as a result of a lack of resources to do so, and (3) are more beneficial on paper than on actual activity. Following this perspective, the coupling between entrepreneurship policy and entrepreneurship activity is hypothesized to be lower for developing countries than for developed countries. Using GEM data correlating the TEA index of early-phase entrepreneurship with indicators of policies obtained from key expert informants supports this assertion.

Suggested Citation

  • Thomas Schøtt & Kent Wickstrøm Jensen, 2008. "The coupling between entrepreneurship and public policy: tight in develped countries but loose in developing countries," Estudios de Economia, University of Chile, Department of Economics, vol. 35(2 Year 20), pages 195-214, December.
  • Handle: RePEc:udc:esteco:v:35:y:2008:i:2:p:195-214
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    File URL: http://www.econ.uchile.cl/uploads/publicacion/ec3f363c-5d74-4771-87e6-9cbf38e847cb.pdf
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    References listed on IDEAS

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    1. Brett Anitra Gilbert & David B. Audretsch & Patricia P. McDougall, 2004. "The Emergence of Entrepreneurship Policy," Small Business Economics, Springer, vol. 22(3_4), pages 313-323, April.
    2. Zoltan Acs & Laszlo Szerb, 2007. "Entrepreneurship, Economic Growth and Public Policy," Small Business Economics, Springer, vol. 28(2), pages 109-122, March.
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    Cited by:

    1. Abubakar S. Garba, 2012. "Entrepreneurship, Public Policy and Poverty Reduction in Nigeria," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 2(2), pages 158-169, April.
    2. Belso-Martinez, Jose A. & Molina-Morales, F. Xavier & Mas-Verdu, Francisco, 2013. "Combining effects of internal resources, entrepreneur characteristics and KIS on new firms," Journal of Business Research, Elsevier, vol. 66(10), pages 2079-2089.
    3. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.

    More about this item

    Keywords

    Entrepreneurship policy; entrepreneurship activity; develop vs. developing countries;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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