Findings from a large and growing body of entrepreneurship research offer insights for public policy and public officials and managers. Entrepreneurship policy is defined as measures undertaken to stimulate entrepreneurship in a region or country. The authors discuss generalizations from empirical research on three types of entrepreneurship activity that are vital for inclusive, sustainable economic growth: high-growth (stressing economic impact), female (inclusive impact), and social (sustainable impact) entrepreneurship. High-growth firms make up a small share of all entrepreneurial activity but create the majority of economic growth. Compared to their male counterparts, female entrepreneurs are fewer in number (one-third of all entrepreneurs) and tend to start ventures with lower financial capital and growth expectations. Social entrepreneurs generally have high levels of education and pursue social objectives, often remedying market failures with innovative solutions. For each entrepreneurship type, the authors provide a definition, empirical generalizations, and implications for public policy.
Practitioner Points• A small group of high-growth firms provide the majority of new economic activities, hence policy makers are encouraged to focus on high-growth entrepreneurship rather than the creation of new firms and self-employment in general. • To stimulate high-growth firms, governments use a wide range of policy instruments directed at finance, labor market regulations, investment in new knowledge, and opening up new markets. • Public policy to support female entrepreneurship includes efforts to provide entrepreneurial education and training, entrepreneurial mentors and networks, and child care. • There is no "one-size-fits-all" blueprint for social entrepreneurship policy because of the vast differences in social venturing prevalence as well as legal and regulatory frameworks, access to financial resources, markets, and training. • Social entrepreneurship activity is facilitated by dedicated finance programs, which include community investment, program-related investment, and dedicated legal status.