Public policy, small business and entrepreneurship Flashcards
What are the three stages of the OECD framework?
Determinants of entrepreneurship, entrepreneurial performance, impact of entrepreneurship
Identify the 6 determinants of entrepreneurship
Regulatory framework, R&D and technology, entrepreneurial capabilities, culture, access to finance, market conditions
identify the 3 entrepreneurial performance measures
Firm-based, employment-based, other
Give examples of firm based measures of entrepreneurial performance
Entry/exit rates, survival rates
Give examples of employment based measures of entrepreneurial performance
Employment growth, ownership rates
Give examples of ‘other’ measures of entrepreneurial performance
Turnover, productivity contribution, innovation
What 3 impact factors does entrepreneurial performance have?
Job creation, economic growth, poverty reduction (these all give economic, social and political benefits)
What two approaches are justification for public intervention in entrepreneurship?
Market failure approach, political-economic approach
In the market failure approach, what does intervention aim to achieve?
Increase competition and reduce monopoly power, reduce information imperfections, provide wider positive externalities or spillovers from entrepreneurship
In the political-economic approach, what is the main premise for intervention
SMEs have a wide economic impact on non-owners as well so intervening will help gain voted during elections
Who proposed the model of entrepreneurship and SME policy?
Lundstrom and Stevenson (2007)
What are entrepreneurship policies and what do they aim to achieve?
‘Soft’ policies which aim to create businesses up to start up phase
What are SME policies and what do they aim to achieve?
‘Hard’ policies which aim to support current businesses after start up phase
Advantages of using entrepreneurship policies?
Increase innovation, increase competition, increase consumer choice
Disadvantages of using entrepreneurship policies?
Most people are uninterested in starting a business (employment utility), more is not necessarily better
