Entrepreneurship and Public Policy

IFN Working Paper No. 804

55 Pages Posted: 23 Aug 2009 Last revised: 22 Jan 2011

See all articles by Magnus Henrekson

Magnus Henrekson

Research Institute of Industrial Economics (IFN)

Mikael Stenkula

Research Institute of Industrial Economics (IFN)

Date Written: August 21, 2009

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

JEL Classification: L53, L25, L26, M13, O31

Suggested Citation

Henrekson, Magnus and Stenkula, Mikael, Entrepreneurship and Public Policy (August 21, 2009). IFN Working Paper No. 804, Available at SSRN: https://ssrn.com/abstract=1458980

Magnus Henrekson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
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Stockholm, SE-10215
Sweden
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HOME PAGE: http://www.ifn.se/mh

Mikael Stenkula

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
Stockholm, 102 15
Sweden

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