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High Growth Entrepreneurs, Public Policies and Economic Growth

Author

Listed:
  • Erik Stam

    (University of Cambridge, Max Planck Institute of Economics Jena, Research group on Entrepreneurship, Economic Growth and Public Policy)

  • Kashifa Suddle

    (EIM Business and Policy Research)

  • S. Jolanda A. Hessels

    (EIM Business and Policy Research)

  • Andre van Stel

    (EIM Business and Policy Research, Erasmus University Rotterdam, Max Planck Institute of Economics, Research group on Entrepreneurship, Economic Growth and Public Policy)

Abstract

This paper investigates whether the presence of ambitious entrepreneurs is a more important determinant of national economic growth than entrepreneurial activity in general. We use data from the Global Entrepreneurship Monitor to test the extent to which high growth ambitions of entrepreneurs affect GDP growth for a sample of 36 countries. Our results suggest that ambitious entrepreneurship contributes more strongly to macro-economic growth than entrepreneurial activity in general. We find a particularly strong effect of high-expectation entrepreneurship for transition countries. These results are interpreted in light of the ongoing debate about public policies designed to stimulate high growth start-ups.

Suggested Citation

  • Erik Stam & Kashifa Suddle & S. Jolanda A. Hessels & Andre van Stel, 2007. "High Growth Entrepreneurs, Public Policies and Economic Growth," Jena Economics Research Papers 2007-019, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2007-019
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    References listed on IDEAS

    as
    1. Paul Schreyer, 2000. "High-Growth Firms and Employment," OECD Science, Technology and Industry Working Papers 2000/3, OECD Publishing.
    2. Marco Vivarelli, 2004. "Are All the Potential Entrepreneurs So Good?," Small Business Economics, Springer, vol. 23(1), pages 41-49, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    entrepreneurial activity; high growth entrepreneurs; growth ambitions; high growth start-ups; public policy; economic growth;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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