Schumpeterian Entrepreneurship: Coveted by Policymakers but Impervious to Top-Down Policymaking
24 June 2021
Introduction Arguably the most influential theoretical definition of entrepreneurship is the Schumpeterian definition, in which the entrepreneur is seen as the key agent involved in the creation of innovative and growth-oriented firms. [...] The premise is that there are fundamental differences in the quality of firms and that a small proportion of all firms are high-quality firms that contribute most of the economic benefits associated with entrepreneurship. [...] Similarly, Schumpeter emphasizes among the functions of the entrepreneur the introduction of novelty and innovation and, crucially, the treading of untraveled paths: We have seen that the function of entrepreneurs is to reform or revolutionize the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing an. [...] To act with confidence beyond the range of familiar beacons and to overcome that resistance requires aptitudes that are present in only a small fraction of the population and that define the entrepreneurial type. [...] Types of entrepreneurship policy Until the mid- to late 1990s, entrepreneurship policy was largely equated with policies aimed at making self-employment a more attractive occupational choice, irrespective of the quality of the business idea and the perceived competence of the prospective entrepreneurs/business owners.