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Local and Systemic Entrepreneurship: Solving the Puzzle of Entrepreneurship and Economic Development

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  • Frederic Sautet

Abstract

Most economists agree that entrepreneurship has a positive effect on growth in developed countries. However, no evidence of this has been found in the case of developing countries. Rather, in many low–income countries, one can observe productive entrepreneurship but little corresponding development. This is the puzzle of entrepreneurship and development. To solve this puzzle, we propose to look at the notions of local and systemic entrepreneurship. Using recent research on the mechanisms of social cooperation, as well as network and firm theories, we offer an explanation of why entrepreneurship has a limited impact on growth in developing countries.

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  • Frederic Sautet, 2013. "Local and Systemic Entrepreneurship: Solving the Puzzle of Entrepreneurship and Economic Development," Entrepreneurship Theory and Practice, , vol. 37(2), pages 387-402, March.
    • Handle: RePEc:sae:entthe:v:37:y:2013:i:2:p:387-402
    DOI: 10.1111/j.1540-6520.2011.00469.x
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    2. Prieger, James E. & Bampoky, Catherine & Blanco, Luisa R. & Liu, Aolong, 2016. "Economic Growth and the Optimal Level of Entrepreneurship," World Development, Elsevier, vol. 82(C), pages 95-109.
    3. Fredström, Ashkan & Peltonen, Juhana & Wincent, Joakim, 2021. "A country-level institutional perspective on entrepreneurship productivity: The effects of informal economy and regulation," Journal of Business Venturing, Elsevier, vol. 36(5).
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    5. Leonardo Mazzoni & Niccolò Innocenti, 2024. "What conditions favor high-potential entrepreneurship? Unpacking the nexus between the industrial structure and startup typologies," Small Business Economics, Springer, vol. 62(3), pages 1201-1222, March.
    6. Nguyen, Canh Phuc & Nguyen, Bach & Duy Tung, Bui & Dinh Su, Thanh, 2021. "Economic complexity and entrepreneurship density: A non-linear effect study," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    7. Ahmad Fathi Alheet, 2019. "Investigating the relationship between entrepreneurial activity and economic growth: a case of Middle East," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1036-1047, December.
    8. Ben Youssef, Adel & Boubaker, Sabri & Omri, Anis, 2018. "Entrepreneurship and sustainability: The need for innovative and institutional solutions," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 232-241.
    9. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    10. Dambusse B. Libombo & Anabela Dinis, 2015. "Entrepreneurship Education In The Context Of Developing Countries: Study Of The Status And The Main Barriers In Mozambican Higher Education Institutions," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-26, September.
    11. Jolanda Hessels & Wim Naudé, 2019. "The Intersection Of The Fields Of Entrepreneurship And Development Economics: A Review Towards A New View," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 389-403, April.
    12. Muñoz, Pablo & Kimmitt, Jonathan, 2018. "Entrepreneurship and the rest: The missing debate," Journal of Business Venturing Insights, Elsevier, vol. 9(C), pages 100-106.
    13. Bollmann, Tobias, 2018. "Unternehmensgründungen und Hochschulen: Eine Analyse der Bedeutung von universitärer Entrepreneurship-Bildung und Clustermitgliedschaften auf regionale Unternehmensgründungen," Arbeitspapiere 180, University of Münster, Institute for Cooperatives.
    14. Christopher J. Boudreaux, 2019. "Entrepreneurship, Institutions, and Economic Growth: Does the Level of Development Matter?," Papers 1903.02934, arXiv.org.
    15. Izabela Kwil & Katarzyna Piwowar-Sulej & Małgorzata Krzywonos, 2020. "Local Entrepreneurship in the Context of Food Production: A Review," Sustainability, MDPI, vol. 12(1), pages 1-21, January.
    16. Kim, Jungsuk & Castillejos-Petalcorin, Cynthia & Jinjarak, Yothin & Park, Donghyun & Quising, Pilipinas & Tian, Shu, 2022. "Entrepreneurship and Economic Growth: A Cross-Sectional Analysis Perspective," ADB Economics Working Paper Series 672, Asian Development Bank.
    17. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.
    18. Hanna Nowak, 2016. "The Role of the Polish Higher Education System in the Development of Entrepreneurship," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(1), pages 43-59.

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