Entrepreneurial heterogeneity and the design of entrepreneurship policies for economic growth and inclusive development
Elisa Calza & Micheline Goedhuys
#2016-043
Entrepreneurship is the object of renewed and increasing attention, not
only by academics, but also by policy makers worldwide. This interest
partly results from a positive perception of entrepreneurship as a
driver of economic growth, and the urgency for policy makers to find
ways to stimulate and sustain economic growth, in developed as well as
in developing countries. This trend raises the need to have a clear
understanding of the role of entrepreneurship in the economy and
society.
This chapter acknowledges that there is a large heterogeneity across
entrepreneurs in their ability to contribute to economic growth. We
present insights from macro-economic studies supporting this statement.
We next take a micro perspective and discuss the evidence based
literature to identify the critical factors and entrepreneur
characteristics that can lead to entrepreneurial success and contribute
to growth. This discussion serves as a framework against which we
reflect on the rationales and effectiveness of entrepreneurial policies
in developing countries.
Keywords: entrepreneurship, firm growth, development policy
JEL Classification: O12, O20, L26