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Entrepreneurship and Human Development: A Capability Approach

  • Gries,Thomas
  • Naudé, Wim

We provide a formal model of entrepreneurship in human development. The framework is provided by the capabilities approach (CA). Hence we extend not only the conceptualisation of entrepreneurship in development, but the reach of the CA into entrepreneurship. From a CA view, entrepreneurship is not only a production factor, or a means to an end, as is often taken to be the case by economists, but also an end in itself. Entrepreneurship can be a human functioning and can contribute towards expanding the set of human capabilities through being both a resource and a process. Our model shows, however, that entrepreneurship is not automatically a functioning. Where it is a necessity it stops being a valued functioning. The model also shows that even when entrepreneurship is valued, entrepreneurs may often not match their ideas with suitable opportunities. Policy implications are discussed.

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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number wp2010-68.

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Length: 23
Date of creation: 2010
Date of revision:
Handle: RePEc:unu:wpaper:wp2010-68
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  1. Acs, Zoltan J. & Szerb, L�szl�, 2009. "The Global Entrepreneurship Index (GEINDEX)," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(5), pages 341-435, August.
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  4. Maria Minniti & Wim Naud�, 2010. "Introduction: What Do We Know About The Patterns and Determinants of Female Entrepreneurship Across Countries?," The European Journal of Development Research, Palgrave Macmillan, vol. 22(3), pages 277-293, July.
  5. Antoncic, Bostjan & Hisrich, Robert D., 2001. "Intrapreneurship: Construct refinement and cross-cultural validation," Journal of Business Venturing, Elsevier, vol. 16(5), pages 495-527, September.
  6. Jeffery S. McMullen & Lawrence A. Plummer & Zoltan J. Acs, 2007. "What is an Entrepreneurial Opportunity?," Papers on Entrepreneurship, Growth and Public Policy 2007-10, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  7. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implicationsfor Growth," University of Chicago - George G. Stigler Center for Study of Economy and State 65, Chicago - Center for Study of Economy and State.
  8. Mehlum, Halvor & Moene, Karl & Torvik, Ragnar, 2003. "Predator or prey?: Parasitic enterprises in economic development," European Economic Review, Elsevier, vol. 47(2), pages 275-294, April.
  9. Tobias J. Moskowitz & Annette Vissing-Jorgensen, 2002. "The Returns to Entrepreneurial Investment: A Private Equity Premium Puzzle?," NBER Working Papers 8876, National Bureau of Economic Research, Inc.
  10. Sabina Alkire & Maria Emma Santos, 2010. "Acute Multidimensional Poverty: A New Index for Developing Countries," Human Development Research Papers (2009 to present) HDRP-2010-11, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
  11. Sabina Alkire, 2010. "Human Development: Definitions, Critiques, and Related Concepts," Human Development Research Papers (2009 to present) HDRP-2010-01, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
  12. Audretsch, David B & Keilbach, Max, 2003. "Entrepreneurship Capital and Economic Performance," CEPR Discussion Papers 3678, C.E.P.R. Discussion Papers.
  13. Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
  14. David Blanchflower & A Oswald, 1993. "Entrepreneurship," CEP Discussion Papers dp0134, Centre for Economic Performance, LSE.
  15. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
  16. Gollin, Douglas, 2008. "Nobody's business but my own: Self-employment and small enterprise in economic development," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 219-233, March.
  17. Christopher J. Coyne & Peter T. Leeson, 2004. "The Plight of Underdeveloped Countries," Cato Journal, Cato Journal, Cato Institute, vol. 24(3), pages 235-249, Fall.
  18. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
  19. Zoltan Acs & Sameeksha Desai & Jolanda Hessels, 2008. "Entrepreneurship, economic development and institutions," Small Business Economics, Springer, vol. 31(3), pages 219-234, October.
  20. David B. Audretsch, 2007. "Entrepreneurship capital and economic growth," Oxford Review of Economic Policy, Oxford University Press, vol. 23(1), pages 63-78, Spring.
  21. Tobias J. Moskowitz & Annette Vissing-Jørgensen, 2002. "The Returns to Entrepreneurial Investment: A Private Equity Premium Puzzle?," American Economic Review, American Economic Association, vol. 92(4), pages 745-778, September.
  22. Alkire, Sabina, 2002. "Valuing Freedoms: Sen's Capability Approach and Poverty Reduction," OUP Catalogue, Oxford University Press, number 9780199245796.
  23. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
  24. Wim Naudé, 2010. "Entrepreneurship, developing countries, and development economics: new approaches and insights," Small Business Economics, Springer, vol. 34(1), pages 1-12, January.
  25. Paul Anand & Graham Hunter & Ian Carter & Keith Dowding & Francesco Guala & Martin Van Hees, 2009. "The Development of Capability Indicators," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 10(1), pages 125-152.
  26. Fonseca, Raquel & Michaud, Pierre-Carl & Sopraseuth, Thepthida, 2007. "Entrepreneurship, Wealth, Liquidity Constraints and Start-up Costs," IZA Discussion Papers 2874, Institute for the Study of Labor (IZA).
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  30. repec:cto:journl:v:24:y:2004:i:3:p: is not listed on IDEAS
  31. Miriam Teschl & Flavio Comim, 2005. "Adaptive Preferences and Capabilities: Some Preliminary Conceptual Explorations," Review of Social Economy, Taylor & Francis Journals, vol. 63(2), pages 229-247.
  32. 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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