Entrepreneurship and Public Policy
IFN Working Paper No. 804
55 Pages Posted: 23 Aug 2009 Last revised: 22 Jan 2011
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: Suggested Citation
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