Evasive Entrepreneurship and Institutional Change

Elert, Niklas; Henrekson, Magnus

doi:10.2139/ssrn.2513475

Cited by 6 publications

(6 citation statements)

References 118 publications

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“…Baumol's (1990) seminal article categorized three types of entrepreneurship: productive, unproductive, and destructive. Coyne and Leeson (2004), Douhan and Henrekson (2010), and Elert and Henrekson (2015) add another type of entrepreneurship to the typology: evasive entrepreneurship [18]. Different institutional arrangements yield 163 Indirectly productive entrepreneurship different combinations of entrepreneurship types.…”

Section: Entrepreneurship: An Incomplete Typology[17]mentioning

confidence: 99%

“…On the other hand, while it seems desirable to improve institutions, such a strategy "is vulnerable and can easily relapse" because "for very low levels of institutional strength the positive effect on incentives is greatly 165 Indirectly productive entrepreneurship diminished by the fact that more productive ventures and consequently raid-able assets also attract more raiders" (Sanders and Weitzel, 2013, p. 58). Bhagwati (1982, p. 992), Lindbeck (1987, Baumol (1990, p. 915), Coyne and Leeson (2004, p. 237), and Elert and Henrekson (2015) discuss a fourth category of entrepreneurship: evasive entrepreneurship. Evasive entrepreneurs expend resources to attempt to evade the legal system or to avoid the unproductive activities of other agents.…”

Section: Unproductive and Destructive Entrepreneurshipmentioning

confidence: 99%

“…In their analysis, such entrepreneurship is "institutional" in its nature in the sense that it "disrupts the institutional equilibrium" (Douhan and Henrekson, 2010, p. 637). See also 171 Indirectly productive entrepreneurship Elert and Henrekson (2015), who show how productive or non-productive evasive entrepreneurship, operating within a suboptimal institutional environment, can lead to institutional reforms that produce a less suboptimal institutional environment.…”

Section: Notesmentioning

confidence: 99%

“…25. To use Elert and Henrekson's (2015) terminology, because no regulation is completely efficient, such entrepreneurship would mitigate its institutional contradictoriness and thus reduce the likelihood of unproductive, evasive entrepreneurship.…”

Section: Notesmentioning

confidence: 99%

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Indirectly productive entrepreneurship

Padilla

Cachanosky

2016

Journal of Entrepreneurship and Public Policy

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Purpose – Since Baumol (1990), the economic literature has distinguished between two broad categories of entrepreneurship: productive and unproductive. The purpose of this paper is to introduce another subcategory: indirectly productive entrepreneurship. Sometimes, profit-seeking entrepreneurs allocate their talents to indirectly productive activities to mitigate the new costs market participants endure as a result of a government regulation. The resources used to mitigate these costs must be diverted from other uses. Design/methodology/approach – This paper uses the example of cell phone storage outside New York City’s high schools to illustrate an indirectly productive entrepreneurial activity that mitigates the inefficiencies or costs created by a regulation. These costs and the resulting entrepreneurship would not have arisen absent the regulation. Findings – These profit opportunities do not result from market entrepreneurial errors or successes but emerge from inefficiencies or unintended consequences produced by government regulations. When evaluating such entrepreneurship, the question is whether such regulation is desirable from an efficiency viewpoint because such entrepreneurship, while making such regulation less inefficient or less costly, diverts resources from other lines of production. Originality/value – This paper identifies a new category of entrepreneurship: indirectly productive entrepreneurship. This paper also shows that government regulation often deters productive entrepreneurship. However, under some circumstances, regulation can indirectly encourage productive entrepreneurship by creating artificial profit opportunities that would not have existed otherwise.

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Section: Entrepreneurship: An Incomplete Typology[17]mentioning

confidence: 99%

Section: Unproductive and Destructive Entrepreneurshipmentioning

confidence: 99%

Section: Notesmentioning

confidence: 99%

Section: Notesmentioning

confidence: 99%

See 2 more Smart Citations

Indirectly productive entrepreneurship

Padilla

Cachanosky

2016

Journal of Entrepreneurship and Public Policy

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show abstract

“…Entrepreneurship is an extremely complex and multidimensional phenomenon and not a single unified process [40]. Different kinds of categories have been given: productive, unproductive and destructive entrepreneurs [28]; replicative entrepreneurs and innovative entrepreneurs [30]; productive, unproductive and evasion entrepreneurs [3].…”

Section: Categories Of Entrepreneursmentioning

confidence: 99%