Entrepreneurship and macroeconomic performance
Strategic Entrepreneurship Journal · 2007 · Volume 1 · Issue 3
Abstract
This paper develops a formal model of the impact of entrepreneurship on macroeconomic performance. It examines the role of entrepreneurs in creating markets for novel products. Entrepreneurs take over the coordination role that in traditional neoclassical economic models is performed by the Walrasian auctioneer. Entrepreneurs specialize in collecting information that permits them to make judgmental decisions about innovation. The quality of their judgment determines the success of innovations, and thereby impacts the long-run performance of the economy. The model demonstrates rigorously that constraints on the supply of entrepreneurship reduce economic performance, and serves to identify the policy instruments that can improve performance by alleviating these constraints. Copyright © 2008 Strategic Management Society.
Keywords
entrepreneurship, macroeconomy, performance, innovation, judgment, information
Enable JavaScript for citation tools and additional paper interactions.