Entrepreneurial Economic Growth Research Articles

The Role of Innovation and Entrepreneurship in Economic Growth, by Michael J.Andrews, AaronChatterji, JoshLerner and ScottStern (National Bureau of Economic Research, Cambridge, MA, 2022), pp. xi +620.

The Role of Innovation and Entrepreneurship in Economic Growth, by Michael J.Andrews, AaronChatterji, JoshLerner and ScottStern (National Bureau of Economic Research, Cambridge, MA, 2022), pp. xi +620.

Women and entrepreneurship for economic growth in Indonesia.

Business and entrepreneurship are certainly not a monopoly on men. As inhabitants of half the world, women also have the right to engage in the business world. In line with the ideals of emancipation, many women currently have the opportunity to become business partners of men. This research aims to clarify the role of absorptive capacity and entrepreneurial competencies in strengthening women's leadership toward success. This research was conducted in 3 provinces in Indonesia involving 114 women entrepreneurs in the MSME (micro, small, and medium enterprises) category. This research used a structural equation model with the SmartPLS software tool. The results of this research showed that absorptive capacity and entrepreneurial competencies were able to increase women's leadership toward successful entrepreneurship. City and age moderation failed to moderate the effect of women's leadership on successful entrepreneurship. The government on a macro scale needs to pay attention to providing understanding or special training for women MSME business actors who are trying to build their business from scratch. Business challenges for women entrepreneurs are heavier than for men because there are several social, value, and cultural barriers that require special treatment and strategies in developing the potential of women entrepreneurs in Indonesia.

Updating Schumpeter’s Gales of Creative Destruction: Exploiting the Vulnerability of New World Order Corporate Globalism With Regional Blockchain Entrepreneurial Economic Growth

Updating Schumpeter’s Gales of Creative Destruction: Exploiting the Vulnerability of New World Order Corporate Globalism With Regional Blockchain Entrepreneurial Economic Growth

Entrepreneurship and economic growth: does gender matter?

PurposeEntrepreneurial firms contribute to economic growth, but the potential gendered nature of this contribution must be investigated as outcomes of male-owned and female-owned firms differ. The study investigates the female underperformance hypothesis in a cross-country analysis of Schumpeterian entrepreneurs. Next, it investigates if there is a gendered dimension of Schumpeterian firm contribution to economic growth.Design/methodology/approachThe study utilizes both nonparametric and parametric methodologies. Through nonparametric methods, the success of female-owned and male-owned firms is compared. Next, a parametric ordinary least squares regression model tests if there is a gendered nature of an entrepreneurial firm's economic contribution.FindingsIn nonparametric analyses, female-owned entrepreneurial firms in developed countries perform similarly to male-owned firms, while in developing countries male-owned firms significantly outperform female-owned firms. The author also finds strong evidence that the gender of the Schumpeterian entrepreneur does not matter in the contribution in economic growth.Research limitations/implicationsIn all countries, the number of female-owned entrepreneurial firms was significantly lower than that of male-owned firms. The findings point to consistent cultural barriers for women in innovation-related fields and persistent gendered norms in entrepreneurship. Thus, removal of cultural barriers and continued support for Schumpeterian entrepreneurship will benefit women and contribute to a country's economic growth.Originality/valueThe data for this study is a unique utilization of the Enterprise World Survey to identify Schumpeterian entrepreneurial firms. Additionally, the study challenges the female underperformance hypothesis and contributes to the literature on the role of entrepreneurship in economic growth.

THE ROLE OF LAW IN PROMOTING THE EFFICIENCY OF THE MODERN ECONOMY (Theoretical Approach)

Introduction. Trends of effective economic development are combined with the innovation, building science-intensive economic potential in Ukraine and the flourishing of entrepreneurship. One of the factors of effective economic dynamics is the improvement of economic regulation, the development a holistic strategy for the introduction of digital technologies and innovations in production.Problem Statement. An urgent scientific task is to assess the scientific orientation of the developments of economists and lawyers and fill them with new content of modern realities based on the rule of law in society.Purpose. Theoretical rethinking of the role of law in modern economic development through the prism of the rule of law and the promotion of innovations.Materials and methods. Analytical, historical, and evolutionary analysis methods for theoretical developments, as well economic and legal analysis, the empirical method.Results. Economic and legal analysis and rethinking and strengthening of scientific developments of J. Schumpeter and other in the category of economic development, "creative destruction" and the driving force of entrepreneurship in economic growth supported by a striking example of Ireland's economic rise in 1987–2006, proved their acceptability for modern implementation to domestic economic strategy and legal policy. As a result of generalization is the original scientific vectors of optimal regulation of the digital economy by establishing the principle of the rule of law as an urgent need to create a positive impetus to economic progress.Conclusions. Optimal regulation of the digital economy is a lever to promoting economic progress, increasing national prosperity, and combating poverty. Factors for economic efficiency are the protection of the economicfreedom of entrepreneurship, the introduction of innovations and the rule of law in society.

Sizing destructive entrepreneurship:The role of institutions in the regional economic growth process

Despite the importance of (productive) entrepreneurship for economic growth, there is little attention about the existence of destructive entrepreneurial activity and its influence on growth. Thus,...

The Role of Entrepreneurship in Economic Growth and Development Models

For decades, the entrepreneur was considered the” invisible man”. The role of entrepreneurship was ignored in economic literature until the 20th century and in economic growth and development models until the early the 1990s. Since then, the role of entrepreneur is included in different branches of economics. The purpose of this paper is to review the role of the entrepreneurs and entrepreneurship in economic growth and development models. After being considered an invisible man in the economics literature, Schumpeter 1911, 1934 considered economic development as a dynamic process that disturbs the closed circular flow of the economic system. Schumpeter considered the entrepreneur as an innovator who plays a fundamental role in the process of economic development. However, few attempts have been made to include entrepreneurship in neoclassical and general equilibrium growth and development models due to the assumptions of perfect competition, static market equilibrium and perfect information about markets and production processes. Endogenous growth models (Romer 1986, 1990; Lucas 1990; Schmitz 1989; Aghion and Howitt 1992) make it possible to include entrepreneurship and entrepreneurs in growth models by emphasizing the role of knowledge externalities, innovations and returns to scale. They consider entrepreneurship as the channel through which these processes affect economic growth. The paper also reviews empirical studies using three macroeconomics databases to describe the entrepreneurial impact on growth, productivity and employment. JEL Codes: B00, O00, O11

The Importance of Innovation in Entrepreneurship for Economic Growth and Development. A Bibliometric Analysis

The Importance of Innovation in Entrepreneurship for Economic Growth and Development. A Bibliometric Analysis

Beyond 140 Characters: Introduction to the Role of Innovation and Entrepreneurship in Economic Growth

Beyond 140 Characters: Introduction to the Role of Innovation and Entrepreneurship in Economic Growth

The Vitruvian Man of Leonardo da Vinci as a model of innovative entrepreneurship at the intersection of business, art and technology

The vital role of entrepreneurship for economic growth and its impact for job creation in mature and developing economies is widely recognized and quantified (OECD, Entrepreneurship and Business Statistics, 2015).According to Get2growth data (How Many Startups Are There?, 2015), 100 million start-ups are created each year of which 1.35% are technology-based companies, and according to the Kauffman Index of Entrepreneurial Activity (Fairlie, 2013), almost a quarter of new businesses in the USA were started by entrepreneurs aged 55 and older.Survival following failure data for start-ups are numerous and complex in the interpretation, and data presented by the Statistic Brain (Startup business failure rate by industry, 2015) show a 55% failure rate within the fifth year.Entrepreneurship is important for growth but sustainable entrepreneurship is hard to achieve.This paper, by means of a case study of a German private art museum “Kunstmuseum Gehrke-Remund”, analyzes the disruptive methods, both atypical and contrary to the mainstream art industry, developed to ensure the sustainable success of such an innovative endeavor. Our analyses and results contribute to the understanding of the building blocks and roadmap designed by the Kunstmuseum to successfully enter the elitist contemporary art industry, as an outsider, and provide an early indication that such methods can be theoretically replicated in other industries by other entrepreneurs.

Entrepreneurship as a Driver of Economic Growth: Evidence from Enterprise Development in Nigeria

This study provides an econometric analysis of the role of entrepreneurship in economic growth in Nigeria. The study also assesses the areas where the country has developed enterprise and innovations. Findings from empirical analysis confirm the roles of entrepreneurs as good drivers of economic growth in the country. Specifically, results reveal that credit to SMEs is statistically significant in the determination of economic growth, implying that increase in entrepreneurial financing has significant effect on economic growth in Nigeria. Particularly, the increase in the operations and activities of SMEs in Nigeria remains indispensable to the pursuit of economic growth and development as a nation. However, the major hindrance inhibiting entrepreneurship as a growth driver in Nigeria include; poor infrastructural facilities, inadequate start-up process, financial management problems, lack of strategic planning and other socio-cultural problems. The study recommends building an in-country entrepreneurial capacity by incorporating requisite enterprise trainings and development progammes into the nation’s education system at all levels. Also, government, banking institutions and the organized private sector should increase financial support for entrepreneurial oriented initiatives.

The Linkages between Entrepreneurship and Economic Growth: A Literature Review of Empirical Evidence

The purpose of this survey paper is to provide a review of the empirical literature linking entrepreneurship and economic growth in particular at the regional level. The starting point in this survey is a review of the distinct concepts of entrepreneurship used in the empirical research. It follows a discussion on how entrepreneurship has been measured so far, highlighting the shortcomings that still persist in this field despite some recent progress. Section 4 systematizes the empirical evidence available on the impact of entrepreneurship on national and regional economic growth. Section 5 summarizes the policy implications arising from the empirical evidence available and stresses the areas where more research is needed for a better understanding of the role of entrepreneurship in economic growth.

Does Entrepreneurship Bring an Equal Society and Alleviate Poverty? Evidence from Thailand

Abstract The Global Entrepreneurship Monitor (GEM) Report 2007 records that Thailand has a remarkably high entrepreneurial activity, even if compared to Japan or the United States. Many studies, including Schumpeter (1934) [1] emphasised the role of entrepreneurship in economic growth and development of a country. Entrepreneurs, characterised by their attitudes to be imaginative, innovative, authoritative, and risk-taking, drive innovation and technological change in the economy, which are crucial in economic growth and development and lead to higher income of the population. On the other hand, entrepreneurship has been considered to associate with higher inequality because the risk embodied in it. Although, during 1990 to 2002 poverty reduction in Thailand has been claimed to be success but income inequality became higher. This raise the question that does entrepreneurship have any impact on reduction of poverty and inequality in Thailand? Therefore, the aim of this paper is to study the impact of entrepreneurship in income inequality and poverty of Thailand. Towards this ends, the analysis on the impact of entrepreneurship on income of the poor, income inequality and poverty are carried out by performing regression analysis. This study uses data that are disaggregated into 76 provinces in Thailand, obtained from official government documents. The regression models follows Beck et al (2005) [2], by running regression based on cross sectional data. Results suggest that entrepreneurship, measured as the number of new business establishment, has a significant negative effect on growth of Gini-coefficient and the headcount index but there is no significant effect on income of the poor. In addition, to confirm these relationships, we expand the data by using 76 provinces of Thailand from 1995 to 2008, and are estimated by three different methods – pooled OLS, random effects and fixed effects. Based on the first two methods, we found that entrepreneurship does not have a significant impact on income of the poor, income inequality and number of poverty. However, the result of the Hausman test necessitates a re-estimation of the model by the fixed effects method. Using the fixed effects methods, our results indicate that entrepreneurship is insignificant. We take this result as evidence that entrepreneurship plays little or no role in income distribution and poverty of Thailand.

Rent‐Seeking, Market Structure, and Growth

AbstractWe study the role of productive and unproductive entrepreneurship in economic growth, in a setting where firms compete in both economic and political markets. Specifically, firms compete for market share through cost‐reducing technological innovation, and they vie for influence over government transfer policy through rent‐seeking activities. We find that rent‐seeking affects growth in two ways: it allows firms to ignore economic competition, leading to less innovation, and it alters the number of firms that are supported in equilibrium. The former effect is negative, while the latter is ambiguous. We show how these effects depend on various characteristics of economic and political markets.

Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective

The purpose of this paper is to provide a contribution to the identification of the role of entrepreneurship in economic growth by mapping out: 1) alternative ways of looking at entrepreneurship, distinguishing 'creative destruction' from simple 'turbulence'; 2) the different microeconomic determinants of new firm formation, distinguishing 'progressive' from 'regressive' drivers; 3) the relationship between ex-ante characteristics (of the founder) and post-entry performance (of the new firm); and 4) the possible scope for an economic policy aimed at maximizing the impact of entrepreneurship on economic growth. Where possible and appropriate, throughout the paper particular attention is devoted to the specific features characterizing entrepreneurship in developing countries.

Does Higher Entrepreneurial Activity Correlate with Higher Level of Growth? Evidence from Thailand

Schumpeter (1934) argues that entrepreneurship plays a vital role in economic growth and development of a country. Entrepreneurs, characterised by their attitudes to be imaginative, innovative, authoritative, and risk-taking, drive innovation and technological change in the economy, which are crucial in economic growth and development. In this regard, the Global Entrepreneurship Monitor (GEM) Report 2007 records that Thailand has a remarkably high entrepreneurial activity, even if compared to Japan or the United States. Paradoxically, this high entrepreneurial activity does not translate into superior economic growth. In fact, Thailand’s economic growth does not really show a notable difference from her neighbouring countries in the Southeast Asia, such as Malaysia, Indonesia, the Philippines, Cambodia and Vietnam. This raises an interesting question that needs careful scrutiny: does entrepreneurial activity really make an impact on economic growth of Thailand? While there are many empirical studies carried out to investigate the determinants of growth in Thailand, an examination on the impact of entrepreneurship is still very much lacking. Thus, there is a need to fill up this gap and perhaps provide an insight and shed some light on this issue. Therefore, the aim of this paper is to study the impact of entrepreneurship on economic growth of Thailand. Towards this ends, the analysis on the impact of entrepreneurship in economic growth is carried out by performing regression analysis. However, unlike most previous growth studies on Thailand that used aggregate data, this study uses data that are disaggregated into 76 provinces in Thailand, obtained from official government documents. Our regression model is based on growth accounting framework, and is estimated by three different methods – pooled OLS, random effects and fixed effects. Based on the first two methods, our results suggest that entrepreneurship, measured as the number of new business establishment, is significant to explain variation in Thailand’s economic growth. However, the result of the Hausman test necessitates a re-estimation of the model by the fixed effects method. Using the fixed effects methods, our results indicate that entrepreneurship is insignificant. We take this result as evidence that entrepreneurship plays little or no role in economic growth of Thailand.

A Commentary on Entrepreneurship and Economic Development (Ed. Wim Naudé)

Interest in the study of entrepreneurship has flourished among scholars in recent years. This research has brought to light, among other things, the important role of entrepreneurship and innovation in economic growth. We know that innovative entrepreneurs - those who bring new products and processes to the market - are disproportionately responsible for the breakthrough or ‘disruptive’ innovations that change our daily lives and allow for the rapid improvement in standards of living that developed countries have experienced over the past century, and also disproportionately responsible for job growth in industrialized economies. While we have learned much about the effects of entrepreneurship, many of the mechanisms of change remain open for research.The role of entrepreneurship in the economic growth of developing countries is certainly even more complex. Studies of this topic often look to history for answers, following the development path of industrialized or growing nations to find the ‘secret sauce’ for their success. Just as innovative entrepreneurial activity is vital to the ongoing growth of developed countries, innovation and entrepreneurship are essential components to a developing economy’s long-term growth. This is the topic of the recent UNU-WIDER book Entrepreneurship and Economic Development, edited by Wim Naude. This article provides some perspective on this contribution.

Gender factors and female entrepreneurship: International evidence and policy implications

Nowadays, the transformations taking place in female entrepreneurship at the national and international levels and the importance of such entrepreneurship for economic growth and poverty alleviation underscore the need for more global and diversified analysis of female entrepreneurial activities. The literature however regarding international comparisons of female entrepreneurship practices remains limited and becomes even more limited when exploring such practices beyond the developed countries context. To this end, this paper examined the impact of five gender-related variables on the extent of female entrepreneurial activities in 44 developed and developing countries. Among its five focused variables, the paper found female education, extent of female economic activities, female earnings ratio, and fertility rate to be significant in all estimations with two different dependent variables representing female entrepreneurial activities. The remaining focus variable related to gender empowerment was found to be significant with one of the two dependent variables. Among its contributions, the paper explored gender entrepreneurship from an international perspective and extended the analysis of the topic beyond the main stream Anglo-Saxon context. It also highlighted the variations in results with regards to developed and developing countries environment. Understanding factors that could influence the development of female entrepreneurial activities and exploring their potential variability across stages of economic development could also be useful for policy makers exploring effective incentive structure to promote gender entrepreneurship in their respective countries.

Measuring and building high-quality entrepreneurship: a research prospectus

This article discusses a detailed research design to measure entrepreneurship quality, as opposed to entrepreneurship quantity, and to develop a standard entrepreneurship quality measure focusing on high-growth small and often new businesses, based on critiques of previous entrepreneurship measures. Available longitudinal establishment-level data sources for building up the entrepreneurship quality index are introduced and evaluated and the Longitudinal Business Database of the US Census Bureau emerges as the best candidate because of its coverage and timely update. The creation and development of the entrepreneurship quality measure will enable researchers to empirically identify a wide range of economic, social, policy, and firm factors that may affect the development of high-quality entrepreneurship. The creation and development of the entrepreneurship quality measure will also enable researchers to uncover the critical role of high-quality entrepreneurship in economic growth in general and in rural development in particular.

INTELLECTUAL PROPERTY PROTECTION, ENTREPRENEURSHIP, AND ECONOMIC GROWTH

This paper brings together the importance of intellectual property protection (IPP) and entrepreneurship in economic growth. The paper surveys the economic literature on what factors are important to growth. The focus is on recent models of endogenous growth which reflect on the role of investment, technological change and education. Secondly, publications, which measure the impact of IPP on some of the growth elements identified are reviewed. The third section deals with IPP and the entrepreneur as an important agent and facilitator of growth. It discusses the nature of IPP as an incentive in not only stimulating the development of new technologies and processes but also the dissemination of existing technologies. Using the surveys as background, short case studies for India and Brazil are presented on IPP as a stimulus and application of research and development. The last section summarizes the previous sections and draws some conclusions with respect to policy.