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Institutions and Entrepreneurship: A Comparative Evaluation in SEE

In: Transformation and European Integration

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  • Bruno Dallago

Abstract

Entrepreneurs are a driving force of transformation in that they activate the new market institutions, including the new private sector; innovate products and processes, markets and social relations; assist companies privatization and restructuring; support competition and transform economic organization. However, there is no guarantee that privatization and liberalization result in entrepreneurship: it may result in ‘proprietorship’, that is, aversion to capital accumulation and competition and orientation towards consumption of the surplus (Scase 2003). As a consequence, entrepreneurs often make no productive contribution at all by producing goods and services that increase the overall economic value produced in the economy, and in some cases play a destructive role (Baumol 1993, 2004).

Suggested Citation

  • Bruno Dallago, 2006. "Institutions and Entrepreneurship: A Comparative Evaluation in SEE," Studies in Economic Transition, in: Bruno Dallago (ed.), Transformation and European Integration, chapter 6, pages 108-126, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-0-230-37796-7_6
    DOI: 10.1057/9780230377967_6
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