Entrepreneurship: Productive, unproductive, and destructive—Relative to what?
David S. Lucas and
Caleb S. Fuller
Journal of Business Venturing Insights, 2017, vol. 7, issue C, 45-49
We identify an ambiguity surrounding institutions and entrepreneurship. While entrepreneurship creates social value at the economy level in the appropriate institutional environment, individual entrepreneurs may create or destroy value in any institutional environment. This raises the question: under what conditions does entrepreneurship create social value? Social value creation depends on the entrepreneur's next best alternative, and institutions are constraints on the relevant alternatives. Hence, society is better off when entrepreneurs navigate poor institutions relative to reduced entrepreneurial activity. Furthermore, entrepreneurs engaging in seemingly “productive” activity need not create social value. We illustrate the argument with two examples.
Keywords: Entrepreneurship; Institutions; Regulation; Public venture capital (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jobuve:v:7:y:2017:i:c:p:45-49
Access Statistics for this article
Journal of Business Venturing Insights is currently edited by Dimo Dimov
More articles in Journal of Business Venturing Insights from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().