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Institutions, Entrepreneurship, and Economic Performance: 41


David B. Audretsch Libri


Using institutional economics as a theoretical framework, this book analyzes institutional environment conducive to entrepreneurial activity in order to enhance economic performance across countries. In particular, the main contributions of this book to the entrepreneurship literature are the following:  Identify past and current research about the institutional context shaping entrepreneurial activity and its effect on economic growth  Examine social progress orientation as those institutional factors that are shaping innovative entrepreneurial activity Explore the effect of different types of entrepreneurial activities on economic growth Examine how social progress orientation through opportunity-driven entrepreneurship affects economic development Analyze the interrelationships between institutions, entrepreneurial activity and economic development across countries Study how the country's institutional context influences the way in which entrepreneurial activity affects social progress  Two sides of the same coin might be observed when analyzing policy aspects of those institutions affecting entrepreneurial activity. On the one hand, effective public policy to promote entrepreneurship is predicated on understanding the underlying forces as well as the consequences and impacts of entrepreneurship. On the other hand, different endeavors to promote entrepreneurial activity might have deleterious economic effects since they could actually reduce employment in the long-term. Thus, it is crucial to understand the institutional environment in which entrepreneurs are interacting and making decisions. The comprehension of these phenomena serves to move forward the theoretical, practical and policy debate on entrepreneurship as a mechanism to achieve higher economic performance.
 
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