The Role of Entrepreneurship in Economic Development (original) (raw)
Entrepreneurship Policy in Estonia
The main task of this article is to explore the entrepreneurship policy in Estonia. The idea proceeds from the book by Lundström and Stevenson (2001), in which the authors describe, analyse and discuss the development of entrepreneurship policy in ten economies — six EU Member States and four members of APEC. In some respects, this article strives to be a “missing chapter” in the aforementioned book concerning entrepreneurship policy in Estonia. It should be considered as an attempt to apply their approach to a country without a long history in SME development. The article starts with an overview of the theoretical background and goes on to examine entrepreneurship policy (or even economic policy) in Estonia. Examination of SME / entrepreneurship policy documents shows that Estonia is moving towards entrepreneurship policy, but with certain minor reservations. The current Estonian entrepreneurship policy may be regarded as a combination of an extension to SME policy and a holistic p...
Entrepreneurship in Estonia: policies, practices, education and research
The paper studies the internationalization of all listed Estonian companies, examining to what extent it has accorded with main internationalization theories. An overview is given of several theoretical approaches, including international entrepreneurship literature, the Uppsala, the innovation-related internationalization and the Finnish models and the network approach to internationalization. The paper contains 13 cases: those of Baltika, Eesti Telekom, Hansabank Group 2 , Harju Elekter, Kalev, Klementi, Merko Ehitus, Norma, Rakvere Lihakombinaat, Saku Õlletehas, Tallinna Farmaatsiatehas, Tallinna Kaubamaja and Viisnurk, and ends with managerial and research suggestions. The Characteristics of Subsidiary Initiatives.
From entrepreneurial intention to enterprise creation: the case of Estonia
Journal of Entrepreneurship in Emerging Economies, 2020
Purpose The present paper aims to identify a set of cognitive and contextual characteristics that explain entrepreneurial intentions, actions and venture creation, thereby covering three successive stages of becoming an entrepreneur. Design/methodology/approach The analysis is based on entrepreneurship data from a self-reported online survey (n = 1,492) gathered among the Estonian population in 2017. The authors use an exploratory factor analysis to reduce initial survey responses about the external environment into latent factors. Linear regression models are applied to predict the determinants of entrepreneurial intention and actions, whereas the logit model is applied to find out the determinants of being or not being an entrepreneur. Findings Younger people, respondents with vocational education and the unemployed have a higher intention to start up. Men are more active than women in the second stage of taking real action, whereas middle-aged respondents and managers are less ac...
Features of successful entrepreneurs in Estonia and changing organisational development challenges
Baltic Journal of Management, 2009
This paper is based on the E-World research programme focusing on international perspectives of entrepreneurship. In the first stage of this international research project, each country had to conduct focus groups in order to develop a preliminary list of traits and behavioural patterns of successful entrepreneurs. Focus groups combined with individual assessments were used for this task. The following features of successful entrepreneurs in Estonia in 2007 were pointed out most often by all categories of respondents: courage to take risks, openness to new information, flexibility, creativity and determination. Networking and acquiring capital, but also selecting the right team and following agreements were described as ways to success. The focus groups stressed some success factors that were seen as being more important for entrepreneurs operating in Estonia in 2007 than in the 1990s: broad world view, wide social network, innovativeness and creativity and lobbying within EU-related structures.
The Role of Entrepreneurship in the Development of Economies
One of the major factors determining economic development is Entrepreneurship. It has been found that the higher the Entrepreneurship in any economy, the greater is the economic development. GEDI is a good indicator of the level of entrepreneurship in any economy. Based on the GEDI it has been seen how developed countries are having a high Global entrepreneurship Development Index. Economies should therefore strive to put a strong emphasis on entrepreneurship as a key to development. In order to achieve this, developing countries should find ways to encourage entrepreneurship and this paper attempts to trace the stages of entrepreneurship development and also suggests measures that can lead an economy to success in this crucial area of development.
Entrepreneurship Evolution in Terms of Economic Development Stages. Retrospective Analysis
2016
Entrepreneurship and economic competitiveness are intensely debated subjects being both in economic analysts’ and decisions makers’ attention, being promoted at a national, European and global stages by creating, coordinating and implementing a favorable strategic, legislative and financial framework. From this perspective, the purpose of this paper is to highlight and promote the entrepreneurship’s role as a fundamental source for enhancing growth potential and national and regional development on the long run, but also to identify based on compared experiences of some additional levers in order to efficiently implement the national and European entrepreneurial strategies. Furthermore, considering that theorists, practitioners and decision makers focus on highlighting the crucial role entrepreneurship plays in ensuring a sustainable economic growth, the current paper approaches the correlation between entrepreneurship and economic competitiveness form a reverse perspective. Thus, t...
Entrepreneurship, economic development, and institutional environment: evidence from OECD countries
Journal of International Entrepreneurship, 2017
The purpose of this article is to establish a typology of entrepreneurship for OECD countries over the 1999-2012 period. Our aim is to draw a distinction between managerial and entrepreneurial economies, to identify groups of countries with similar economic and entrepreneurial activity variables, and to determine the economic and institutional drivers of entrepreneurial activities in each group. We show that the level of development, sectoral specialization, and institutional variables related to entrepreneurship, functioning of the labor market and openness of the country are decisive to understand differences in entrepreneurship activity across countries. Results show that the pre-crisis period, from 1999 to 2008, is a period of growth favorable to entrepreneurship. The financial crisis involved a break in entrepreneurial dynamism, with agricultural economies withstanding the financial crisis better. The 2010-2012 period of recovery is a period of a sharp slowdown in entrepreneurial activity, during which the countries that are less dependent on the financial sector proved to be the most resilient in terms of entrepreneurial activity. Nevertheless, it is the advanced knowledge economies with developed financial markets, fewer institutional regulatory constraints, and greater scope for qualitative entrepreneurship that show lower unemployment rates. These findings have important implications for the implementation of public policy in order to promote entrepreneurial activity and reduce unemployment. Résumé : L'objectif de cet article est d'élaborer une typologie des activités entrepreneuriales des pays de l'OCDE durant la période 1999-2012. Notre intention est d'établir une distinction entre les économies managériales et entrepreneuriales, d'identifier des groupes de pays ayant des comportements économiques et entrepreneuriaux similaires et d'identifier les déterminants économiques et institutionnels des activités entrepreneuriales dans chaque groupe. Nous montrons que le niveau de développement, la spécialisation sectorielle ainsi que les variables institutionnelles liées à l'entrepreneuriat, au fonctionnement du marché du travail et à l'ouverture du pays sont déterminants pour appréhender les différences nationales en matière d'activité entrepreneuriale. Les résultats BLIND Manuscript-without author contact information Click here to view linked References
Empirical entrepreneurship in Europe, 2007
According to the entrepreneurship literature the nature and extent of entrepreneurial value creation affects not only the sustainability and success of the venture, but also influences its wider contribution to the development of the economy. At the society or economy level entrepreneurship and small and medium-sized companies (SMEs) 1 are generally viewed as contributing positively to economic growth (Kirzner 1973, Foss and Foss 2002). Although there are also diverse arguments (Brown et al. 1990, Davidsson and Delmar 2000, Dunne ...
Entrepreneurship is a concept that contributes a lot to the development and growth of economies. This thesis describes different definitions of the concept and their implications for further understanding of economics. William Baumol’s definition of productive entrepreneurship is used, which places great emphasis on the institutional structure that determines the rewards for entrepreneurship in an economy. There are different ways in which a government can influence the institutional structure; the most important ways being regulations, the taxation system and well-defined property rights. This thesis aims to contribute to the understanding of which of these is most important in encouraging a blossoming entrepreneurial environment in an economy. Based on the transition from communism to capitalism in Lithuania, the different actions undertaken by the government and the resulting levels of entrepreneurship, it is concluded that a swift and comprehensive restructuring of taxation in favour of SMEs is most important.