Entrepreneurship and Public Policy

Abstract

Entrepreneurship is a primary catalyst for economic growth and regional development. Recognizing its importance, state and local policymakers are now devoting considerable resources to fostering entrepreneurship. After a brief discussion of the data and theories of entrepreneurship, this paper presents a framework for thinking about governments role in the entrepreneurial process. We then examine the research on macro-level determinants of entrepreneurial activity and find that policies broadly consistent with economic freedom, such as secure property rights, low taxes, and low regulations lead to a robust entrepreneurial environment.