Policymakers throughout Europe and the US have responded to
rising concerns about unemployment, jobs, growth and international
competitiveness in global markets with a new mandate to promote the
creation of innovative new businesses. While recent literature
identified clear and decisive links between entrepreneurship,
growth, job creation and international competitiveness, policy
makers were initially slow to recognize these links. Without a
clear and organized view of where and how entrepreneurship
manifests itself, policy makers have been left in uncharted waters
without an analytical compass.
The purpose of this book is to provide such an analytical
compass for directing how public policy can shape and promote
entrepreneurship. We do this in two ways. The first is to provide a
framework for policymakers and scholars to understand what
determines entrepreneurship. The second is to apply this framework
to a series of cases, or country studies. In particular, this book
seeks to answer three questions about entrepreneurship: What has
happened over time? Why did it happen? And, what has been the role
of government policy?
The cornerstone of the book is the proposed Eclectic Theory of
Entrepreneurship. The goal of the Eclectic Theory is to provide a
unified framework for understanding and analyzing the determinants
of entrepreneurship. The Eclectic Theory of entrepreneurship
integrates the different strands from relevant fields into a
unifying, coherent framework. At the heart of the Eclectic Theory
is the integration of factors shaping the demand for
entrepreneurship on the one hand, with those influencing the supply
of entrepreneurs on the other hand. The key to understanding the
role of public policy is through identifying those channels
shifting either the demand for or the supply of entrepreneurship by
policy instruments.
The findings in this book show that, by utilizing the framework
provided by the Eclectic Theory of Entrepreneurship, it is within
the grasp of policymakers to identify the determinants of
entrepreneurship in a particular country setting at a particular
point in time. This will be essential in formulating new public
policies to promote entrepreneurship and, ultimately, economic
growth, job creation and international competitiveness.
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