On the Efficacy of Reforms: Policy Tinkering, Institutional Change, and Entrepreneurship

The authors analyze the interplay of policy reform and entrepreneurship in a model where investment decisions and policy outcomes are both subject to uncertainty. Findings indicate that institutional reforms work best in settings where entrepreneurial activity is weak, while it is likely to produce disappointing outcomes where the cost discovery process is vibrant.

Savings of Entrepreneurs

The study finds that entrepreneurial households save more out of their family income, even when investment in business assets are excluded from the saving rate definition. The author does not find support for the hypothesis that business owner households have higher rates of wealth increase.

Are Young and Small Firms Hothouses for Nascent Entrepreneurs?

The paper uses a large representative sample of the German population to test the hypothesis that young and small firms are hothouses for nascent entrepreneurs. The study concludes that regions with young and small firms today will have them tomorrow and regions without a large population of hothouses for nascent entrepreneurs will not have much of them in the future.

Governor’s Guide to Strengthening State Entrepreneurship and Policy

The report from the National Governors Association’s Center for Best Practices indicates that states must develop a supportive environment for entrepreneurs to prosper in an increasingly competitive global economy. Instead of developing competitive cluster-based models, the report observes, most state economic development efforts continue to be organized around traditional business retention and incentive-based industry recruitment programs.