Beyond formal policies: Informal functions of mayor’s offices to promote entrepreneurship

Abstract

Scholars of economic development have generally concluded that local governments have limited capacities, due to their limited resources and orientation toward short-term growth output. In addition, past studies have predominantly examined explicit and formal policies or programs. However, there are other informal yet important dimensions of local governments that can promote economic development. By bringing in examples of mayor’s offices in the context of entrepreneurship in the U.S., this article explores and highlights four major informal functions those municipal offices can perform: (1) setting the priorities, (2) offering a clearinghouse, (3) connecting and coordinating people, and (4) appointing key personnel. Each function does have consequences, and a combination of the functions can significantly contribute to entrepreneurial activities in the local area. While evaluation of effectiveness will be difficult, scholars ought to conduct more exploratory research to understand those potentially significant functions of government for economic development, which includes qualitative dimensions that broadly affect individuals, firms, communities, and regions.