The Outlier Phenomenon in Entrepreneurship and Economic Growth: Mollycoddling Policies Create New Zealand's Perfect Storm

Babson College Entrepreneurship Research Conference (BCERC) 2006

Frontiers of Entrepreneurship Research 2006

15 Pages Posted: 11 Feb 2009 Last revised: 10 Mar 2009

See all articles by Howard Frederick

Howard Frederick

Deakin University - Bowater School of Management and Marketing

Erik Monsen

University of Vermont - School of Business Administration

Date Written: January 21, 2009

Abstract

Analyzing GEM 2005 data, we confirm that entrepreneurship and economic development form a U-shaped curve. We seek to understand New Zealand's large deviation from the modeled curve by factor-analyzing all countries' deviations from the curve. We make recommendations that would move New Zealand toward the trend line and thus aid in increasing its level of economic development. Our findings indicate that measures that overprotect workers, spoil incentives, or indulge welfare passivity can stymie economic growth even in conditions of high entrepreneurial activity.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Frederick, Howard H. and Monsen, Erik Willard, The Outlier Phenomenon in Entrepreneurship and Economic Growth: Mollycoddling Policies Create New Zealand's Perfect Storm (January 21, 2009). Babson College Entrepreneurship Research Conference (BCERC) 2006, Frontiers of Entrepreneurship Research 2006, Available at SSRN: https://ssrn.com/abstract=1331092 or http://dx.doi.org/10.2139/ssrn.1331092

Howard H. Frederick (Contact Author)

Deakin University - Bowater School of Management and Marketing ( email )

Victoria
Australia

Erik Willard Monsen

University of Vermont - School of Business Administration ( email )

Burlington, VT 05405
United States

HOME PAGE: http://www.uvm.edu/business/?Page=profile.php&id=473

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