A Tale of Two Entrepreneurs: Understanding Differences in the Types of Entrepreneurship in the Economy

10 Pages Posted: 2 May 2013 Last revised: 8 Oct 2013

William Aulet

Massachusetts Institute of Technology (MIT) - Martin Trust Center for MIT Entrepreneurship

Fiona Murray

Massachusetts Institute of Technology (MIT) - Entrepreneurship Center

Date Written: May 1, 2013

Abstract

Not all startup companies are created equal. Although both innovation-driven enterprises (IDEs) and traditional small- and medium-sized enterprises (SMEs) can provide valuable products and services and create jobs, IDEs – startups focused on addressing global markets based on technological, process or business model innovation – can potentially create hundreds or even thousands of high-skill jobs if they succeed.

This paper examines the distinctive differences between these two forms of entrepreneurial ventures, their importance for governments and policymakers wanting to support long-term economic growth; their roles in local, regional and global economies; and their differing needs in terms of financial and policy support.

Keywords: entrepreneur, entrepreneurship, SME, IDE, policy, growth

Suggested Citation

Aulet, William and Murray, Fiona, A Tale of Two Entrepreneurs: Understanding Differences in the Types of Entrepreneurship in the Economy (May 1, 2013). Available at SSRN: https://ssrn.com/abstract=2259740 or http://dx.doi.org/10.2139/ssrn.2259740

William Aulet (Contact Author)

Massachusetts Institute of Technology (MIT) - Martin Trust Center for MIT Entrepreneurship ( email )

United States

HOME PAGE: http://mitsloan.mit.edu/faculty/detail.php?in_spseqno=9118

Fiona E. Murray

Massachusetts Institute of Technology (MIT) - Entrepreneurship Center ( email )

United States

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