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Research Institute of Industrial Economics (IFN) Working Paper Series

No 804:
Entrepreneurship and Public Policy

Magnus Henrekson () and Mikael Stenkula ()

Abstract: Public policy is currently shifting from SME policy towards entrepreneurship policy, which supports entrepreneurship without directing attention to quantitative goals and specific firms or employment groups. The institutional framework set by public policy affects the prevalence and performance of both productive entrepreneurship and so-called high-impact entrepreneurship in turn. Although varying contexts and economic systems make prescribing a general panacea impossible, a number of relevant policy areas are identified and analyzed. Independent of environment, productive entrepreneurship should be rewarded and unproductive entrepreneurship should be discouraged. Successful ventures must also have the incentive to continue renewing themselves just as it must be easy to start and expand a business. In particular, we analyze regulatory entry and growth barriers, labor market regulation, liquidity constraints and tax policy at length.

Keywords: Entrepreneurship; Gazelles; High-growth firms; High-impact entrepreneurship; Innovation; Institutions; Product market regulations; Property rights; Self-employment; Tax policy; (follow links to similar papers)

JEL-Codes: L25; L26; L53; M13; O31; (follow links to similar papers)

54 pages, August 18, 2009

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This paper is published as:
Henrekson, Magnus and Mikael Stenkula, (2010), 'Entrepreneurship and Public Policy' in Acs, Zoltan J. and David B. Audretsch (eds.) Handbook of Entrepreneurship Research, 2nd edn., International Handbook Series on Entrepreneurship, Vol. 5, chapter 21, pages 595-637, Springer.



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