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Entrepreneurs and their impact on jobs and economic growth

Author

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  • Alexander S. Kritikos

    (DIW Berlin, University of Potsdam, and IZA, Germany)

Abstract

Entrepreneurs, creators of new firms, are a rare species. Even in innovation-driven economies, only 1–2% of the work force starts a business in any given year. Yet entrepreneurs, particularly innovative entrepreneurs, are vital to the competitiveness of the economy and may establish new jobs. The gains of entrepreneurship are only realized, however, if the business environment is receptive to innovation. In addition, policymakers need to prepare for the potential job losses that can occur in the medium term through “creative destruction†as entrepreneurs strive for increased productivity.

Suggested Citation

  • Alexander S. Kritikos, 2024. "Entrepreneurs and their impact on jobs and economic growth," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-8.2, October.
    • Handle: RePEc:iza:izawol:journl:2024:n:8.v2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Entrepreneurs; job creation; economic growth; Competition; Innovation; productivity; regulation;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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