Chapter 13: Economic perspectives: Influences and impacts

Henrekson, M. and Sanandaji, T. (2020) ‘Measuring entrepreneurship: do established metrics capture schumpeterian entrepreneurship?’ Entrepreneurship Theory and Practice, 44, 4: 733-760.

This article examines economic tools used to measure the ‘Schumpeterian’ entrepreneurship – the more dynamic and high impact varieties that we tend to associate with venture capital-funded share issues (IPOs), self-made billionaires, ‘unicorn’ start-ups and recently founded global firms. The authors use a technique called factor analysis to assess how well available economic data for 64 countries distinguishes between this kind of high-impact entrepreneurship and more conventional forms of small business activity. They conclude that, with one notable exception, the quantity-based measures most commonly used in economic studies are not very effective in identifying Schumpeterian entrepreneurship.

Qian, H. (2018) ‘Knowledge-based regional economic development: a synthetic review of knowledge spillovers, entrepreneurship, and entrepreneurial ecosystems’. Economic Development Quarterly, 32, 2: 163-176.

This article extends the topic of knowledge spillovers and entrepreneurship, which was introduced in Case 13.3. The author brings together different strands of research, including newer work on entrepreneurial ecosystems, in order to discuss the geographical nature of knowledge spillovers and entrepreneurship. The article also considers what needs to be in place in order for these mechanisms to be effectiveness, including knowledge bases, ‘absorptive capacity’, competition and culturally diverse social networks.

Nel, E. and Stevenson, T. (2014) ‘The catalysts of small town economic development in a free market economy: a case study of New Zealand’. Local Economy, 29, 4­5: 486–502.

This article examines the impact of neoliberal policy changes on smaller and more marginal urban communities in New Zealand. The authors drawn on statistical indicators of change and a study of 68 small towns to identify common catalysts and barriers to economic development and diversification. They find that local entrepreneurs can play a key role in improving economic wellbeing, in particular by encouraging others relocate to their town.

Wilson, N., Wright, M. and Altanlar, A. (2013) ‘The survival of newly-incorporated companies and founding director characteristics’. International Small Business Journal, 32, 7: 733–58.

This article applies econometric techniques to examine the success or failure of newly-incorporated companies. It makes use of a unique dataset of more than 5.8 million observations to test hypotheses regarding director characteristics, while also controlling for macro-economic conditions, recursive relationships and non-insolvency exits.