Entrepreneurship and economic growth
5 important questions on Entrepreneurship and economic growth
CQ 1: Which type of entrepreneurship contributes to economic growth? (2)
- Development of new businesses, decline or closure of incumbents, securing efficiency (competitiveness)
- The difficulty of measuring 'new entrepreneurial activity' and the 'start-up rate'
CQ 2: Can there be too much entrepreneurship in a country? (3)
- The relation between new business formation and economic development is U-shaped (L-shaped)
- There is a difference between opportunity and necessity entrepreneurship
- Every country has an 'optimal' level of entrepreneurship
CQ 3: How can entrepreneurial ecosystems foster small business venturing? (3)
- Baumol's typology
- Conditions for entrepreneurship may influence the quantity and type of entrepreneurship
- Ranking of ecosystems has advantages and disadvantages
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What are 3 advantages of explicitly ranking entrepreneurial ecosystems?
- Indices & rankings allow for straightforward comparisons across countries (contexts)
- Indices & rankings can be used to study the impact of the institutional context and the availability of local resources on new business activity, innovation or business
- Entrepreneurship related country rankings have significant implications for the quantification of country risk, economic activity and investments
What are 2 advantages of explicitly ranking entrepreneurial ecosystems?
- The 'tyranny of international index rankings'
- Some policymakers pursue high rankings out of prestige
- Rankings may be over interpreted (when uncertainty is ignored
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