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Abstract We debate the motivation for and effectiveness of public policies to encourage individuals to become entrepreneurs. Reviewing established evidence we find that most Western world policies do not greatly reduce or solve any market failures but instead waste taxpayers’ money, encourage those already intent on becoming entrepreneurs, and mostly generate one-employee businesses with low It is bad enough that the average entrepreneur gets to source his own capital, many times at high interest rates, pay for rent one year upfront, power his generator at N145 per litre, pay his staff and deduct PAYE on government’s behalf and the government still manages to get in his way of doing business at every possible turn. entrepreneurs’ characteristics such as gender, age, education, socioeconomic status, and past experiences. Though some studies suggest that men are more likely to display entrepreneurial behavior than women (Crant, 1996), gender alone cannot explain why some men or women choose to become entrepreneurs. It is important that we understand why people become entrepreneurs so that we can design supportive educational programs and advise others, particularly policy-makers, on how to help entrepreneurs. In a recent research paper, researchers in the U.K. reviewed more than 50 academic papers on entrepreneurship and identified seven reasons that people become entrepreneurs: Owning to the variability of success in entrepreneurial ventures, the scenario of having too many entrepreneurs may also lead to income inequalities, making citizens more – not less – unhappy. The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.

Why encouraging more people to become entrepreneurs is bad public policy

As a result, the increased use of capital leads companies to grow in size Policy makers often think that creating more start-up companies will transform depressed economic regions, generate innovation, and create jobs. This belief is flawed because the typical start-up Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.

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Richard R. Nelson, 1959. "The Economics of Invention: A Survey of the Literature," The Journal of Business, University of Chicago Press, vol. 32, pages 101-101.

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Why encouraging more people to become entrepreneurs is bad public policy

Scott Shane () . Small Business Economics, 2009, vol. 33, issue 2, 149 pages . Keywords: Economic growth; Entrepreneurship; Entrepreneurship Award Winner; Job creation; New firm formation; J24; L26; M13 (search for similar items in EconPapers) Why encouraging more people to become entrepreneurs is bad public policy By Scott Shane Get PDF (174 KB) We are not allowed to display external PDFs yet. You will be redirected to the full text document in the repository in a few seconds, if not click here.click here. 2013-09-18 · Policy makes encourage more people to become entrepreneurs because they know that it goes hand-by-hand with innovation and motivation. It is crucial to celebrate failure at an organizational level as well as at a national level.

Get PDF (174 KB) Cite . BibTex; Full citation; Publisher: Springer.
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37. 3.3.3. Mapping of public entrepreneurship policies: Portugal and Netherlands .. 40. 4.

But I think no one needs money more than entrepreneurs. You might actually conclude that Most people become entrepreneurs and build businesses simply for investment purposes. I think I became an entrepreneur because I saw building a business as an investment for myself and future. From personal experience, I can say that those who see their business as an investment vehicle are usually long term thinkers and they are the ones who build businesses that stand the test of time.
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av SJ de Silva · Citerat av 2 — skills development, social policy, and aid effectiveness. She works as For example, private companies and entrepreneurs cut cooperation between partners just because aid is being cut is an result in ineffective or even harmful aid, uncompetitive others, where links must be considered as more indirect (for example. av M Stampfer · 2019 — STRUT, was delivered to the Swedish government in February 2019. Adding to the principle are clear: Quality first comes through the selection of people. individual policy instruments, as most of the evaluations are commissioned by the various funding universities has become a long shopping-list, for good or bad.

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This belief is flawed because the typical WORLD ENTREPRENEURSHIP FORUM 2008 EDITION Why encouraging more people to become entrepreneurs is bad public policy Scott Shane The Weatherhead School of Management, Case Western Reserve University Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol.

Year: 2009. DOI Why Encouraging More People to Become Entrepreneurs - Free download as PDF File (.pdf), Text File (.txt) or read online for free. is a working paper on why investing too much in creating entrepenuers in developing countries may not be the best idea. We will discuss the nature and the function of the entrepreneur in two articles, Scott Shane’ s critical position, “ Why Encouraging More People to Become Entrepreneurs is Bad Public Policy ” and an overview of the entrepreneurial role in Israel Kirzner’s, “Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach.” Shane, S. "Why encouraging more people to become entrepreneurs is bad public policy" Small Business Economics 33:2 (2009): 141–149. Wennekers, S., Thurik, R. "Linking entrepreneurship and economic growth" Small Business Economics 13:1 (1999): 27–55. Finding a proper and sustainable solution for these people would be good for them and good for the economy in general.