Advertisement

Simulating the Impact of Policy on Entrepreneurship

  • Ryan Sutter
Part of the International Studies in Entrepreneurship book series (ISEN, volume 17)

Abstract

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.

Keywords

Entrepreneurial Action Baseline Case Policy Proposal Issue Area Firm Survival 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

7.7 References

  1. Acs, Z. and D. Audretsch (2004), Handbook of Entrepreneurship Research. Boston: Springer, Paperback.Google Scholar
  2. Acs, Z. and C. Armington (2006), Entrepreneurship, Geography, and American Economic Growth, Cambridge University Press.Google Scholar
  3. Baumol, W., R. Litan, and C. Schramm (2006), Good Capitalism and Bad Capitalism, The MIT Press.Google Scholar
  4. Cantillon, R. (1755), Essays on the Nature of Commerce in General, Google Books (2001), http://books.google.com/books?hl=en&lr=&id=bFrKPV0pzk0C&oi=fnd &pg=PP5&dq=essay+on+the+nature+of+commerce+in+general&ots=f_0IRxHz 0y&sig=nsWnbmIZGV36wLNaPr6cUiY6na8
  5. Grebel, T., A. Pyka, and H. Hanusch (2001), ‘An Evolutionary Approach to the Theory of Entrepreneurship’ (unpublished document available for download at http://www.wiwi.uni-jena.de/mikro/pdf/Vortrag-Grebel-131201.pdf) (downloaded October 15, 2006).
  6. Grebel T., A. Pyka, and H. Hanusch (2003), ‘An Evolutionary Approach to the Theory of the Entrepreneur’, Industry and Innovation, Vol. 10, Dec. 2003, 493-514.CrossRefGoogle Scholar
  7. Hart, D. (2003), The Emergence of Entrepreneurship Policy, Cambridge:Cambridge University Press.Google Scholar
  8. Holtz-Eakin, D. and H. Rosen (2004), Public Policy and the Economics of Entrepreneurship, The MIT Press.Google Scholar
  9. Kauffman Foundation (2006), ‘A Roadmap for an Entrepreneurial Economy’, Kansas City, Missouri (Mimeo).Google Scholar
  10. Knight, F. (1921), Risk, Uncertainty, and Profit, Hart, Schaffner & Marx; Houghton Mifflin Company, Boston MA.Google Scholar
  11. Lucas, R. (1988), ‘On the Mechanics of Economic Development’, Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42.CrossRefGoogle Scholar
  12. Lundstrom, A. and L. Stevenson (2005), Entrepreneurship Policy: Theory and Practice. Boston: Springer.Google Scholar
  13. Nelson, R.R. and S.G. Winter (1982), An Evolutionary Theory of Economic Change, Cambridge, Mass: Harvard University Press.Google Scholar
  14. Romer, P.M. (1986), ‘Increasing Returns and Long-run Growth’, Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37.Google Scholar
  15. Romer, P.M. (1990), ‘Endogenous Technical Change’ Journal of Political Economy Vol. 98 pp. s71-s102.CrossRefGoogle Scholar
  16. Say, J.B. (1803), A Treatise on Political Economy, Google Books 2005, http://books.google.com/books?id=kRDf4OVd2yYC&printsec=titlepage&dq=jean+say+1803#PPA3,M1
  17. Schumpeter, J. (1947), ‘The Creative Response in Economic History’, The Journal of Economic History, vol. 7(2), pp. 149-159.Google Scholar
  18. Shane, S. (2003), A General Theory of Entrepreneurship, Edward Elgar, Paperback.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Ryan Sutter
    • 1
  1. 1.School of Public PolicyThe George Mason UniversityFairfaxUSA

Personalised recommendations