Entrepreneurial Activities: A Microeconomic Analysis

Abstract

People have different preferences for performing entrepreneurial activities. These differences can be influenced by actions of the state. Special attention is paid to examine the individual behavior in choosing employed work or entrepreneurial activities. Individual supply of entrepreneurial work is aggregated. Equilibrium entrepreneurial activity is given by the balance of aggregate supply and aggregate demand. States can promote more aggregate supply of entrepreneurial activity through engaging institutional devices, or they can make institutional changes to increase aggregate demand for entrepreneurial activity through domestic and global markets. The effects of appropriate institutional settings on entrepreneurial activities over time are highlighted.

Keywords: Entrepreneurship, Entrepreneurial Activities, Institutional Contraints

JEL Classification: L26, D01, D02, D00