What is the value of entrepreneurship? A review of recent research

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Hence, a systematic review is provided that answers the question: What is the contribution of entrepreneurs to the economy in comparison to non-entrepreneurs? We study the relative contribution of entrepreneurs to the economy based on four measures that have most widely been studied empirically. Hence, we answer the question: What is the contribution of entrepreneurs to (i) employment generation and dynamics, (ii) innovation, and (iii) productivity and growth, relative to the contributions of the entrepreneurs' counterparts, i.e. the 'control group'? A fourth type of contribution studied is the role of entrepreneurship in increasing individuals' utility levels. Based on 57 recent studies of high quality that contain 87 relevant separate analyses, we conclude that entrepreneurs have a very important -but specific -function in the economy. They engender relatively much employment creation, productivity growth and produce and commercialize high quality innovations. They are more satisfied than employees. More importantly, recent studies show that entrepreneurial firms produce important spillovers that affect regional employment growth rates of all companies in the region in the long run. However, the counterparts cannot be missed either as they account for a relatively high value of GDP, a less volatile and more secure labor market, higher paid jobs and a greater number of innovations and they have a more active role in the adoption of innovations. Terms of use: Documents inJEL-classification: D24, D31, E23, E24, J21, J28, J31, L26, M13

The influence of socio-cultural environments on the performance of nascent entrepreneurs: Community culture, motivation, self-efficacy and start-up success

“…McClelland 1976; Rauch and Frese 2007), in which individuals expend effort in return for expected financial and non-financial rewards. Non-financial rewards include for instance the high levels of autonomy, job satisfaction and well-being that entrepreneurs enjoy (Stephan and Roesler 2010;van Praag and Versloot 2007). In line with the notion of person-culture-fit (Tung, Walls and Frese 2007), entrepreneurship thus should thrive in socio-cultural environments which support performance-based behaviors including taking initiative, working to high standards, and achieving success through one's own personal effort rather than through status or inheritance (McCelland 1976;Stephan and Uhlaner 2010;Weber 1930).…”

“…Entrepreneurship is important for national economies as it contributes to job creation, productivity and economic growth (Parker, 2009;Van Praag and Versloot, 2007). Our understanding of individual factors enabling and hindering entrepreneurship has significantly increased, however, it is only relatively recently that researchers have addressed the question of how embedded entrepreneurial behavior is in national institutions.…”

Social progress orientation and innovative entrepreneurship: an international analysis

“…In this context, the entrepreneur is seen as the agent of change who can contribute toward progress and technology transformation through innovation (Teece 1986). Thus, entrepreneurial activity is a valid conduit for the establishment of new activities that promote economic performance and new jobs, as well as ensuring the well-being of society at regional and national levels (Acs et al 2012;Avlonitis and Salavou 2007;Beugelsdijk 2007;Busenitz et al 2003;Carlsson et al 2013;Díaz et al 2013;Feldman 2014;Ribeiro Soriano and Peris-Ortiz 2011;Urbano and Aparicio 2016;van Praag and Versloot 2007;Wennekers and Thurik 1999). Examining the factors that encourage innovative entrepreneurial activity has attracted the interest of academics and others in different fields and with different perspectives (Audretsch 2012;Shane and Venkataraman 2000;Thornton et al 2011;Veciana and Urbano 2008;Verheul et al 2002).…”

Labour as a knowledge carrier: how increased mobility influences entrepreneurship

“…Van Praag and Versloot (2007), Karlsson and Nyström (2008), Braunerhjelm (2011)]. 2 In 2002 the research project ''Entrepreneurship and Society'', headed by Pontus Braunerhjelm and mainly involving Zoltan Acs, David Audretsch and Bo Carlsson, was granted generous financial support from Marianne and Marcus Wallenberg's Foundation.…”