Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/216899
Authors: 
Naudé, Wim
Year of Publication: 
2020
Series/Report no.: 
GLO Discussion Paper 539
Abstract: 
Entrepreneurship in advanced economies is in decline. This comes as a surprise: many scholars have anticipated an upsurge in entrepreneurship, and expected an "entrepreneurial economy" to replace the post-WW2 "managed" economy. Instead of the "entrepreneurial economy" what has come into being may perhaps better be labelled the "ossified economy." This paper starts by document the decline. It then critically presents the current explanations offered in the literature. While having merit, these explanations are proximate and supply-side oriented. Given these shortcomings, this paper contributes a new perspective: it argues that negative scale effects from rising complexity, as well as long-run changes in aggregate demand due to inequality and rising energy costs, are also responsible. Implications for entrepreneurship scholarship are drawn.
Subjects: 
Entrepreneurship
start-ups
development
economic complexity
growth theory
JEL: 
O47
O33
J24
E21
E25
Document Type: 
Working Paper

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