Studying regulation as a source of opportunity rather than as a constraint for entrepreneurs: conceptual map and research propositions

Abstract

There is an abundant literature on policies aiming at supporting entrepreneurship or small and medium-sized enterprises (SMEs). At the same time, many studies investigate the compliance costs of regulations and stress their constraining impact on entrepreneurship or SMEs. In this paper we demystify the classical distinction made between ‘supportive’ policies and ‘constraining’ regulations by discussing the existence of ‘enabling’ regulations and policies that create opportunities for entrepreneurs. This paper contributes to the debate on the approaches that public authorities use to support entrepreneurship, their legitimacy, and their effectiveness to create business opportunities and complement it by developing both a conceptual map of regulatory entrepreneurial opportunities and research propositions set to capture the links between government interventions and entrepreneurial opportunities.