Abstract

https://ssrn.com/abstract=2720603
 


 



A Portfolio Perspective on Entrepreneurship and Economic Development


Michael H. Morris


University of Florida; Oklahoma State University

Xaver Neumeyer


University of North Dakota

Donald F. Kuratko


Indiana University - Kelley School of Business - Management & Entrepreneurship

September 4, 2015

Small Business Economics, Vol. 45, No. 4, 2015
Kelley School of Business Research Paper No. 16-9

Abstract:     
Because the large majority of new ventures remain small, their economic contribution is questioned. Shane (Small Bus Econ 33(2):141-149, 2009) has argued that designing public policies which encourage more people to become entrepreneurs is counterproductive, and the exclusive focus should be high-growth ventures, or gazelles. As a counter to Shane’s position, four types of start-up ventures are considered, with each having differing needs and making unique contributions to the economic welfare of a nation, region, or locality. Based on this typology, seven counter-arguments to Shane’s position are presented, addressing issues related to the cost of entry and exit, rates of efficiency and failure, employment levels, sector differences, ecosystems, and venture emergence. Based on these counter-arguments, a portfolio perspective is advocated, where societal risks and a variety of returns are balanced across all four types of new ventures. An example of a portfolio approach to policy design is provided, and implications are drawn.

Number of Pages in PDF File: 16

Keywords: entrepreneurship, public policy, entrepreneurial performance, portfolio approach J

JEL Classification: L26, L25


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Date posted: January 25, 2016 ; Last revised: August 16, 2016

Suggested Citation

Morris, Michael H. and Neumeyer, Xaver and Kuratko, Donald F., A Portfolio Perspective on Entrepreneurship and Economic Development (September 4, 2015). Small Business Economics, Vol. 45, No. 4, 2015; Kelley School of Business Research Paper No. 16-9. Available at SSRN: https://ssrn.com/abstract=2720603

Contact Information

Michael H. Morris (Contact Author)
University of Florida ( email )
Gainesville, FL 32611
United States
352-273-0329 (Phone)
Oklahoma State University ( email )
Stillwater, OK 74078-0555
United States
(405) 744 5357 (Phone)
HOME PAGE: http://entrepreneurship.okstate.edu
Xaver Neumeyer
University of North Dakota ( email )
293 Centennial Dr Stop 8098
Gamble Hall Room 365-O
Grand Forks, ND 58202
United States
Donald F. Kuratko
Indiana University - Kelley School of Business - Management & Entrepreneurship ( email )
Bloomington, IN 47405
United States

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