Entrepreneurial Economies

Abstract

The study of entrepreneurship often focuses on the activities of the entrepreneur. While entrepreneurship is undertaken by individuals, the degree to which individuals are entrepreneurial, and the directions in which their entrepreneurial actions take, are the result of the institutional environment. Some economies are more entrepreneurial than others. After discussing the institutional factors that encourage entrepreneurship, the ways in which economic models depict the economy are discussed, pointing toward the different policy conclusions regarding entrepreneurship that emanate from different assumptions in economic conditions.