Policies to promote entrepreneurial activity and economic performance

Abstract

Purpose – The purpose of this paper is to analyse the effects of some political measures on entrepreneurship to promote economic growth and employment, specifically, R & D policies, training, elimination of administrative barriers, access to finance support and promotion of entrepreneurial culture. Design/methodology/approach – Seven hypotheses are tested developing a latent variables model with data from 13 European countries (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden and UK) in 2012, using partial least squares estimation method. Findings – Greater expenditure on R & D by governments and universities, public investment in education and measures to stimulate entrepreneurial culture have a positive effect on entrepreneurship. Furthermore, countries with complex legal systems which regulate the start-up of an economic activity and where access to credit is complicated, present lower levels of entrepreneurship. Societies with a greater number of innovative entrepreneurs present higher levels of entrepreneurial activity and economic performance. Finally, human capital and entrepreneurial activity positively affect economic performance in the case of the European countries studied in the sample. Practical implications – The results obtained in the paper would facilitate the design of measures to stimulate to entrepreneurs and improve economic performance. Originality/value – Several factors, qualitative and quantitative, have been considered in the analysis that they have not traditionally included in the analysis of the entrepreneurship behaviour taking into account the role played by the policy makers measures to improve such behaviour.

The effect of public policies on entrepreneurial activity and economic growth

“…Taking into account the previous theoretical aspects, as well as Castaño-Martínez, Méndez-Picazo, and Galindo-Martín's (2015) empirical analysis, the current analysis aims to answer the following questions:…”

Policies to Foster Entrepreneurship: Elements from the European Experience in the Integrated Micro-Meso-Macro Analytical Perspective

“…e) Amezcua et al (2013Amezcua et al ( , p. 1628, instead of entrepreneurship policy, use the broader term "organizational sponsorship," which "mediates the relationship between new organizations and their environments by creating a resource-munificent context intended to increase survival rates among those new organizations." f) Castaño-Martínez et al (2015, p. 2074) focus on the EU and the policies towards the member states and argue that entrepreneurship measures depend on the problems of each country: "there are several types of measures. There are measures aimed at incentivizing entrepreneurial culture; measures designed to improve the training and management skills of entrepreneurs; state aid for innovation and internationalization; availability of financial resources; the introduction of tax incentives; the improvement of the regulatory framework."…”

“…In conclusion, entrepreneurship policy is primarily a tool of economic development (Dutz et al, 2000), which should aim at creating conditions for improving the business environment and stimulating business interest (Lundström & Stevenson, 2005). These are knowledge and innovation-enhancing policies (Audretsch & Beckmann, 2007;Link, 2007), which must provide organizations with the appropriate tools to survive and thrive, such as in-company training and consulting (Autio, 2016;Castaño-Martínez, Méndez-Picazo, & Galindo-Martín, 2015;Jourdan & Kivleniece, 2017). As Kantis et al (2002) argue, the government must build a vision, plan strategies, mobilize critical players, and provide resources for new dynamic enterprises to emerge and develop.…”

Incentive programs to promote startups: a Brazilian case

“…This view is reinforced by Fiates et al (2010), demonstrating the beneficial results of startup interactions with government agencies, national and foreign partners, suppliers or users of goods and services, research centers, trade associations, among others, showing that such interactions contribute significantly to the diffusion of innovation. In this context, Castaño-Martínez et al (2015) indicate that governments can play an important role in reducing costs and barriers, as well as in improving the attribution of entrepreneurial talents to innovation. Prominent interventions include entrepreneurship programs such as the Venture Capital Limited Partnership and Advance Queensland in Australia, Yozma in Israel, Startup Chile and iNNpulsa Colombia, representing effective mechanisms to support entrepreneurs in overcoming obstacles and encouraging startups to spread innovations that stimulate the economy.…”