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Title:A model of destructive entrepreneurship PDF Logo
Authors:Desai, Sameeksha
Acs, Zoltan
Weitzel, Utz
Issue Date:2010
Series/Report no.:Working paper // World Institute for Development Economics Research 2010,34
Abstract:The current research on entrepreneurship as an economic phenomenon often assumes its desirability as a driver of economic development and growth. However, entrepreneurial talent can be allocated among productive, unproductive, and destructive activities. This process is theorized as driven by institutions. Although the tradeoff between productive and unproductive entrepreneurship has been examined, destructive entrepreneurship has been largely ignored. We build from existing theory and define destructive entrepreneurship as wealth-destroying. We propose three assumptions to develop a model of destructive entrepreneurship that presents the mechanisms through which entrepreneurial talent behaves in this manner. We present four key propositions on the nature and behavior of destructive entrepreneurship. We conclude by identifying policy and research streams that emerge from our model.
Subjects:destructive entrepreneurship
entrepreneurship
allocation
rent-seeking
incentives
informal institutions
JEL:O1
L26
P00
ISBN:978-92-9230-269-6
Document Type:Working Paper
Appears in Collections:WIDER Working Papers, United Nations University (UNU)

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