Entrepreneurship in the European Union

Abstract

Entrepreneurship research posits that high potential new firms are the leading source of employment growth (Acs et al., 2008), wealth creation (Venkataraman, 1997), and economic development (EC, 1999). The European Union’s Lisbon Strategy recognized the significant role of entrepreneurs in creating employment (EC, 2000). The authors posit that a “Unified Europe” is not the same as a “Uniform Europe.” Using states in the United States as a comparative unit of analysis, the authors demonstrate ways in which differences in endowments (e.g., human capital, support for entrepreneurship, and regulatory environment) dynamically influence entrepreneurial outcomes. This analysis identifies challenges faced by local entrepreneurs in the context of Europe 2020.