Understanding Entrepreneurship Across Countries and Over Time

Abstract

The Eclectic Theory of entrepreneurship isintroduced.The purpose of the theory is to provide a coherent,interdisciplinary framework for understanding and analyzing what determinesentrepreneurship.The determinants of entrepreneurship in Europeancountries are compared with those in the United States in order to test theusefulness of the Eclectic Theory. Although Europe has generally been slow to follow the United States' lead inexploring entrepreneurial opportunities, the European stance toward theentrepreneurial economy has indeed evolved and may be divided into fivestages.These stages include denial of the benefits of entrepreneurialpursuits, recognition of those benefits, envy of the American entrepreneurialeconomy, consensus regarding the superiority of the entrepreneurial economy,and attainment of that economy. The Eclectic Theory has uncovered at least two important insights about theprevalence and the determinants of entrepreneurship in the countriesstudied.First, three of the four countries (Germany, the Netherlands, theUnited States) experienced a decline in entrepreneurial activity that wasfollowed by revival.Also, entrepreneurship policies created jobs andpromoted international competitiveness and economic growth in all fourcountries. It remains to be seen whether the Eclectic Theory will be a usefultool for analyzing entrepreneurial behavior in other countries. (SAA)

Keywords: Public policies, Job creation, Economic growth, International competition, Entrepreneurial economies