The Political Economy Of Entrepreneurship

The authors outline a politico-economic growth system centered on the entrepreneur. By defining entrepreneurs in relation to economic rents they are able to develop a more general theory comprising central aspects of research within the fields of entrepreneurship/small business, public choice and new institutional economics. The entrepreneurial function is shown to depend crucially on the existing institutional framework. They also point to the necessity of viewing institutions as endogenously influenced by entrepreneurs. A typology of entrepreneurship is developed to further this understanding of the bilateral effects between institutional context and entrepreneurial activity. They use developments in modern history as a real-world context to substantiate this framework.