Entrepreneurship and the business cycle

Roy Thurik

IZA World of Labor, 2014, No 90, 90

Abstract: Entrepreneurship has a cyclical component, raising two questions. Is the entrepreneurship cycle related to the business cycle? And is there causality? A two-way relationship between entrepreneurship and the business cycle would be in line with the two faces of entrepreneurs: as agents of change creating upswings (opportunity entrepreneurship) and as rational actors escaping unemployment by setting up a business (necessity entrepreneurship). Nascent entrepreneurship can indeed be precyclical, implying that the two faces of entrepreneurship also show up in the business cycle, with promising policy implications.

Keywords: entrepreneurship; business cycle; precyclicality; nascent entrepreneurship (search for similar items in EconPapers)
JEL-codes: E32 L26 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (6)

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