Is productive entrepreneurship getting scarcer? A reflection on the contemporary relevance of Baumol’s typology of entrepreneurship
Maria Minniti,
Wim Naudé and
Erik Stam
Chapter 2 in Handbook of Research on Entrepreneurship and Conflict, 2024, pp 18-44 from Edward Elgar Publishing
Abstract:
This chapter focuses on the contemporary relevance of Baumol’s typology of productive, unproductive, and destructive entrepreneurship. Specifically, we evaluate the usefulness of Baumol’s typology for studying divergent development outcomes, measuring, and defining entrepreneurship motivations, understanding the dynamics of violent conflict, and helping to develop entrepreneurial ecosystems. We show that the typology is relevant for explaining the secular decline in business dynamics in many advanced economies over the past half a century. Entrepreneurship has become less productive and less socially beneficial as result of unintended effects of entrepreneurship policies adopted widely in western economies in recent decades. These policies have straitjacketed, distracted and zombified entrepreneurship and in doing so reduced productive entrepreneurship in absolute and relative terms. The chapter concludes that changing policies in favor of productive entrepreneurship would require the depreciation of critical so-called level-two institutions, such as democracy and science, to be halted and reversed.
Keywords: Business and Management; Economics and Finance; Politics and Public Policy General Academic Interest (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:
Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781802206791.00009 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:21252_2
Ordering information: This item can be ordered from
http://www.e-elgar.com
Access Statistics for this chapter
More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().