Evasive Entrepreneurship

34 Pages Posted: 23 Oct 2014 Last revised: 12 Apr 2019

See all articles by Niklas Elert

Niklas Elert

HFI, Institute of Retail Economics

Magnus Henrekson

Research Institute of Industrial Economics (IFN)

Date Written: March 31, 2016

Abstract

We argue that evasive entrepreneurship is an important, although underrated, source of innovation, and provide the first systematic definition of the concept. We for-mulate four propositions of evasive entrepreneurship and illustrate them with a number of real life examples, ranging from a secret agreement among Chinese farmers in the 1970s to activities of rides-for-hire startups in the modern sharing economy. We demonstrate that while evasive entrepreneurship can either be productive, unproductive or destructive, it may prevent economic development from being stifled by existing institutions during times of rapid economic change. Furthermore, it can spur institutional change with important welfare effects.

Keywords: Entrepreneurship, Innovation, Institutions, Regulation, Self-employment

JEL Classification: L5, M13, O31, P14.

Suggested Citation

Elert, Niklas and Henrekson, Magnus, Evasive Entrepreneurship (March 31, 2016). IFN Working Paper No. 1044, Available at SSRN: https://ssrn.com/abstract=2513475 or http://dx.doi.org/10.2139/ssrn.2513475

Niklas Elert (Contact Author)

HFI, Institute of Retail Economics ( email )

Regeringsgatan
Stockholm
Sweden

Magnus Henrekson

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
Grevgatan 34
Stockholm, SE-10215
Sweden
+46-8-6654502 (Phone)
+46-8-6654599 (Fax)

HOME PAGE: http://www.ifn.se/mh

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