Simulating the Impact of Policy on Entrepreneurship
The resurgence of interest in role of the entrepreneur in economic change has led to a reexamination of the role of public policy strategies that seek to facilitate and promote entrepreneurship. However, the impacts of many proposed public policies on entrepreneurial outcomes are difficult, at best, to quantify. As a result, little public policy analysis regarding the potential for the success of the proposed sets of policies exists. This research at-tempts to, in part, fill in this gap by first generalizing a sample policy proposal to its most basic dimensions of effect and then analyze the impacts of these generalized dimensions on entrepreneurial outcomes using simulation modeling. The results of the analysis suggest that public policies directed at: 1) increasing the aggregate level of human capital and 2) increasing the aggregate stock of new knowledge; have the most influential impact on entrepreneurial outcomes.
KeywordsEntrepreneurial Action Baseline Case Policy Proposal Issue Area Firm Survival
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