Masterarbeit, 2018
78 Seiten, Note: 1.7
This thesis investigates whether entrepreneurship effectively drives economic growth and development in developing countries. While theoretical frameworks generally suggest a positive correlation, empirical evidence remains ambiguous. The study aims to analyze this discrepancy by examining the types of entrepreneurship prevalent in developing nations and the institutional factors influencing their impact.
1 Introduction: This chapter introduces the central research question: whether entrepreneurship is a sufficient tool for driving economic growth and development in developing countries. It highlights the existing ambiguity in empirical evidence, noting that most studies focus on developed nations. The chapter outlines the thesis structure, previewing the exploration of entrepreneurship definitions, relevant economic theories, empirical evidence, and policy implications. The study's focus on filling the gap in research concerning developing countries is emphasized.
2 Entrepreneurship - Concepts and definitions: This chapter delves into the various definitions and concepts of entrepreneurship, categorizing them into behavioral and occupational aspects. It recognizes the multifaceted nature of the term and establishes a clear definition to guide the analysis of entrepreneurial activity. This foundation is crucial for the subsequent chapters that build upon a consistent understanding of what constitutes entrepreneurship within the scope of this thesis.
3 Entrepreneurship in theories of economic growth and development: This chapter examines prominent economic growth and development theories and identifies the mechanisms influenced by entrepreneurship. It highlights the crucial role of institutional frameworks in enabling positive effects of entrepreneurship on economic growth and development, emphasizing that many developing countries lack such frameworks. The chapter lays the theoretical groundwork for understanding how entrepreneurship interacts with economic systems and the conditions under which it thrives.
4 Empirical evidence: This chapter explores the challenges of measuring entrepreneurship and presents empirical evidence on its relationship with economic growth, focusing on developing countries. It reveals that most entrepreneurship in these nations fails to generate economic growth or development. The chapter identifies “high-growth entrepreneurship,” characterized by significant job creation, as the only type demonstrably linked to increased economic growth. This finding sets the stage for subsequent discussions about promoting this specific type of entrepreneurship.
5 Promoting high-growth entrepreneurship in developing countries: This chapter presents empirical evidence on successful institutional enhancements for promoting high-growth entrepreneurship in developing countries. It integrates findings from previous chapters to provide policy recommendations for increasing the rate of growth-oriented entrepreneurship in these nations. This chapter bridges the gap between theoretical understanding and practical policy interventions.
Entrepreneurship, economic growth, economic development, developing countries, high-growth entrepreneurship, institutional framework, policy recommendations, GEM data, self-employment, new firm entry.
The central research question is whether entrepreneurship effectively drives economic growth and development in developing countries. The thesis acknowledges the ambiguity of existing empirical evidence, particularly the lack of focus on developing nations.
The key themes include the definition and multifaceted nature of entrepreneurship; its role in economic growth theories; empirical evidence of its impact on economic growth in developing countries; the importance of institutional frameworks in fostering productive entrepreneurship; and policy recommendations for promoting high-growth entrepreneurship in developing economies.
The thesis explores various definitions of entrepreneurship, categorizing them into behavioral and occupational aspects. It aims to establish a clear and consistent definition to guide the analysis throughout the study, recognizing the multifaceted nature of the term.
The thesis examines prominent economic growth and development theories, such as neoclassical and new growth theories, and Porter's Diamond Model, to identify the mechanisms through which entrepreneurship influences economic outcomes. It highlights the critical role of institutional frameworks in facilitating the positive effects of entrepreneurship.
The thesis presents empirical evidence on the relationship between entrepreneurship and economic growth in developing countries, addressing the challenges of measuring entrepreneurship. It finds that most entrepreneurship in these nations fails to generate significant economic growth, with only "high-growth entrepreneurship" demonstrating a clear link to increased growth.
"High-growth entrepreneurship" is characterized by significant job creation and is identified as the only type of entrepreneurship demonstrably linked to increased economic growth in developing countries. This finding is crucial for formulating effective policy recommendations.
The thesis emphasizes the critical role of institutional frameworks in enabling productive entrepreneurship and economic growth. It highlights the deficiency of such frameworks in many developing countries and their impact on the effectiveness of entrepreneurial activity.
Based on empirical evidence and theoretical understanding, the thesis provides policy recommendations for promoting high-growth entrepreneurship in developing countries. These recommendations aim to address the institutional gaps and facilitate the growth-oriented entrepreneurial activities crucial for economic development.
The thesis utilizes data from sources like the Global Entrepreneurship Monitor (GEM) and considers country-specific evidence to analyze the impact of entrepreneurship on economic growth. The challenges of measuring entrepreneurship are also discussed.
The thesis includes chapters covering an introduction, definitions of entrepreneurship, the role of entrepreneurship in economic theories, empirical evidence focusing on developing countries, and policy recommendations for promoting high-growth entrepreneurship.
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