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High Growth Entrepreneurs, Public Policies and Economic Growth

  • Erik Stam

    (University of Cambridge, Max Planck Institute of Economics Jena, Research group on Entrepreneurship, Economic Growth and Public Policy)

  • Kashifa Suddle

    (EIM Business and Policy Research)

  • S. Jolanda A. Hessels

    (EIM Business and Policy Research)

  • Andre van Stel

    ()

    (EIM Business and Policy Research, Erasmus University Rotterdam, Max Planck Institute of Economics, Research group on Entrepreneurship, Economic Growth and Public Policy)

This paper investigates whether the presence of ambitious entrepreneurs is a more important determinant of national economic growth than entrepreneurial activity in general. We use data from the Global Entrepreneurship Monitor to test the extent to which high growth ambitions of entrepreneurs affect GDP growth for a sample of 36 countries. Our results suggest that ambitious entrepreneurship contributes more strongly to macro-economic growth than entrepreneurial activity in general. We find a particularly strong effect of high-expectation entrepreneurship for transition countries. These results are interpreted in light of the ongoing debate about public policies designed to stimulate high growth start-ups.

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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-019.

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Date of creation: 20 Jun 2007
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Handle: RePEc:jrp:jrpwrp:2007-019
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  1. Marco Vivarelli, 2004. "Are All the Potential Entrepreneurs So Good?," Small Business Economics, Springer, vol. 23(1), pages 41-49, 08.
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