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Entrepreneurship and advancing national level economic efficiency

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  • Kai Du

    (University of Adelaide)

  • Allan O’Connor

    (University of Adelaide)

Abstract

We explore the channels under which entrepreneurship fosters productivity by disentangling its impact on national level economic efficiency and find that more entrepreneurship in aggregate is not always good for economic growth and, most importantly, identifying the form and activity of entrepreneurship is critical for policy-makers to better manage changes in their economies. Our national level results also suggest that the new product entrepreneurship and to a lesser extent improvement-driven opportunity entrepreneurship both significantly contribute to the improvement of national level efficiency. However, both measures would benefit from further development and it seems a higher coincidence of both is more likely to advance a nation’s economic efficiency.

Suggested Citation

  • Kai Du & Allan O’Connor, 2018. "Entrepreneurship and advancing national level economic efficiency," Small Business Economics, Springer, vol. 50(1), pages 91-111, January.
    • Handle: RePEc:kap:sbusec:v:50:y:2018:i:1:d:10.1007_s11187-017-9904-4
    DOI: 10.1007/s11187-017-9904-4
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    3. Ali, Abdul & Kelley, Donna J. & Levie, Jonathan, 2020. "Market-driven entrepreneurship and institutions," Journal of Business Research, Elsevier, vol. 113(C), pages 117-128.
    4. Ibrahim Al-Jubari, 2019. "College Students’ Entrepreneurial Intention: Testing an Integrated Model of SDT and TPB," SAGE Open, , vol. 9(2), pages 21582440198, May.
    5. Emilia Herman, 2022. "The Interplay between Digital Entrepreneurship and Sustainable Development in the Context of the EU Digital Economy: A Multivariate Analysis," Mathematics, MDPI, vol. 10(10), pages 1-28, May.
    6. Xinming Ge & Jinbo Wang, 2022. "A Meta-Analysis of the Relationship between Financing Efficiency and Entrepreneurial Vitality: Evidence from Chinese College Students," Sustainability, MDPI, vol. 14(17), pages 1-22, August.
    7. Mohammad Nourani & Wen‐Min Lu & Irene Wei Kiong Ting, 2020. "Vicarious warfare and dynamic efficiency of companies in the aerospace and defence industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 641-650, June.
    8. Yushun Su & Zeren Zhu & Jingwen Chen & Yuanqing Jin & Ting Wang & Chien-Liang Lin & Danying Xu, 2021. "Factors Influencing Entrepreneurial Intention of University Students in China: Integrating the Perceived University Support and Theory of Planned Behavior," Sustainability, MDPI, vol. 13(8), pages 1-17, April.
    9. Manuel Carlos Nogueira & Mara Madaleno, 2021. "Is the Aurora Borealis an Inspiration to the Performance of Nordic Economic Sustainability?," Sustainability, MDPI, vol. 13(17), pages 1-22, September.
    10. Nadia Di Paola, 2021. "Pathways to academic entrepreneurship: the determinants of female scholars’ entrepreneurial intentions," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1417-1441, October.
    11. Ioannis E. Tsolas, 2022. "Assessing Regional Entrepreneurship: A Bootstrapping Approach in Data Envelopment Analysis," Stats, MDPI, vol. 5(4), pages 1-10, November.
    12. Thomas Neumann, 2023. "Are greener start-ups of superior quality? The impact of environmental orientation on innovativeness, growth orientation, and international orientation," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-24, December.
    13. Matheus Koengkan & José Alberto Fuinhas & Emad Kazemzadeh & Fariba Osmani & Nooshin Karimi Alavijeh, 2022. "Measuring the economic efficiency performance in Latin American and Caribbean countries: An empirical evidence from stochastic production frontier and data envelopment analysis," International Economics, CEPII research center, issue 169, pages 43-54.
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    More about this item

    Keywords

    Economic efficiency; Data envelopment analysis; New product entrepreneurship; Improvement-driven opportunity entrepreneurship; Global entrepreneurship monitor;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P42 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices

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