Special interest in decision making in entrepreneurship policy

Abstract

Purpose – The purpose of this paper is to investigate the role of the special interests of key decision makers in entrepreneurship policy formation at the national level. The core question is: what is the role that special interests play in a situation with significantly improved evidence through a growing number of high-quality international benchmark studies on entrepreneurial performance. Design/methodology/approach – An ethnographic method is applied to analyse in depth the 2005 decision by the Danish Government to shift from a volume-oriented to a growth-oriented entrepreneurship policy. This decision process is an extreme case since Denmark has world-class evidence of its entrepreneurial performance. Findings – Even in such a well-investigated country, which since 2000 has had a pioneering role in the development of the Global Entrepreneurship Monitor study and international register-based studies, the special interests of a few top-level politicians and civil servants have significantly influenced the decision to shift the overall policy. These special interests guided the interpretation of the ambiguous evidence provided by these two benchmark studies. Practical implications – Policy makers are made aware of the need to take a critical view on international benchmark studies, asking what is studied and how and realising that “the truth” about a country’s entrepreneurial performance cannot be found in just one study. Originality/value – The theoretical value of this paper is its challenge to the widespread rationality view in the entrepreneurship policy field and a deepened understanding of how the pursuit of special interests is related to ambiguous evidence and system-level rationality.