Government as a financier of entrepreneurship

Supradeep Dutta and Timothy B. Folta

Chapter 10 in Field Guide to Entrepreneurial Finance, 2026, pp 184-203 from Edward Elgar Publishing

Abstract: This chapter reviews scholarship at the intersection of public policy, entrepreneurial finance, and innovation with the broad goals of providing background and citations for those interested in contributing to the field. It discusses the rationales for government intervention in entrepreneurship, the policy debates surrounding it, and the economic impact of various policy initiatives. While arguments exist for and against policy support for entrepreneurship, understanding of what works and how is limited. The best path forward involves experimentation with new policy designs, learning from the best practices across government agencies, and conducting careful assessment. The chapter ends with an extensive set of research ideas motivated by the gaps in the literature and recent developments in evaluating policy initiatives.

Keywords: Entrepreneurship; Innovation; Public Policy; Government Financing; Grants (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035342495
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