Working Paper Series
Entrepreneurship and Institutions
Abstract: In this paper entrepreneurs are defined as agents who
bring about economic change by combining their own effort with other
factors of production in search of economic rents. The institutional setup
is argued to determine both the supply and direction of entrepreneurial
activity. Four key institutions are explored more closely: property rights
protection, savings policies, taxation and the regulation of labor markets.
Institutions have far-reaching effects on entrepreneurship, and they
largely determine whether or not entrepreneurial activity will be socially
productive. Due to the responsiveness of entrepreneurship to the
institutional setup it is maintained that in-depth analyses of specific
institutions are required in order to further our understanding of the
determinants of entrepreneurial behavior and the economic effects of
entrepreneurship. The paper also demonstrates that it is problematic to use
self-employment as an empirical proxy for productive entrepreneurship.
Keywords: Entrepreneurship; Industrial policy; Innovation; Institutions; Labor security; Property rights; Regulation; Self-employment; Tax policy; (follow links to similar papers)
JEL-Codes: H32; L25; L50; M13; O31; P14; (follow links to similar papers)
29 pages, June 4, 2007
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Full text versions of the paper:
- This paper is published as:
Henrekson, Magnus, (2007), 'Entrepreneurship and Institutions', Comparative Labor Law & Policy Journal, Vol. 28, No. 4, pages 717-742
Henrekson, Magnus, (2007), Entrepreneurship and Institutions, Vol. 28, 4 edn., Comparative Labor Law & Policy Journal.
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