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The Intersection of the Fields of Entrepreneurship and Development Economics: A Review towards a New View

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  • Hessels, Jolanda

    (Erasmus University Rotterdam)

  • Naudé, Wim

    (RWTH Aachen University)

Abstract

Policy makers find it difficult to promote economic development through entrepreneurship and SMEs. In this paper we argue that this is because the positive impact of entrepreneurship is overestimated and its negative impact underestimated. It is moreover also because there is no unified scientific approach towards the role of entrepreneurship in economic development. The scholarly fields that have been interested in this, entrepreneurship economics and development economics, have been elaborated in isolation and only recently started to intersect. This growing intersection is however fragmented, ad hoc, not based on a unifying theoretical approach and suffering from lack of proper measurement. Better policy making will hence benefit from the extension and deepening of the intersection of these fields. We contribute in this regard by providing a conceptual basis for the eventual elaboration of such a unified theoretical approach. We do so by providing an up-to-date review of the intersection of the two scholarly fields, by noting the progress and gaps, by delineating the externalities associated with entrepreneurship in development, and by proposing a new synthesis definition of entrepreneurship.

Suggested Citation

  • Hessels, Jolanda & Naudé, Wim, 2017. "The Intersection of the Fields of Entrepreneurship and Development Economics: A Review towards a New View," IZA Discussion Papers 11103, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11103
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    2. Enrique Claver-Cortés & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Lorena Ruiz-Fernández & Eduardo Sánchez-García, 2020. "Explanatory Factors of Entrepreneurship in Food and Beverage Clusters in Spain," Sustainability, MDPI, vol. 12(14), pages 1-22, July.
    3. Pankaj C. Patel & Cornelius A. Rietveld, 2022. "Does globalization affect perceptions about entrepreneurship? The role of economic development," Small Business Economics, Springer, vol. 58(3), pages 1545-1562, March.
    4. Elisa I. Villena-Martínez & Juan José Rienda-Gómez & Dolores Lucía Sutil-Martín & Fernando E. García-Muiña, 2024. "Psychometric properties and factor structure of a motivation scale for higher education students to graduate and stimulate their entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 1879-1906, September.
    5. Ivano Dileo & Thaís García Pereiro, 2019. "Assessing the impact of individual and context factors on the entrepreneurial process. A cross-country multilevel approach," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1393-1441, December.
    6. Ubyrajara B. Dal Bello & Carla Susana da Encarnacao Marques & Octávio Sacramento, 2022. "(In)migration and entrepreneurship in rural areas: a systematic literature review," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 3, pages 153-185.
    7. Henrekson, Magnus & Johansson, Dan & Karlsson, Johan, 2021. "To Be or Not to Be: The Entrepreneur in Endogenous Growth Theory," Working Papers 2021:3, Örebro University, School of Business.
    8. Peerasit Kamnuansilpa & Andrey Timofeev & Grichawat Lowatcharin & Sirisak Laochankham & Vissanu Zumitzavan & Panpun Ronghanam & Krisada Prachumrasee & Narongdet Mahasirikul, 2023. "Local economic development in Thailand," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1852-1873, October.
    9. Mohammad Alawamleh & Yara Hanna Francis & Kamal Jamal Alawamleh, 2023. "Entrepreneurship challenges: the case of Jordanian start-ups," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-14, December.

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    More about this item

    Keywords

    growth; development; entrepreneurship; occupational choice;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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