Policy interest since the early 1980s has focused in different ways on the crea-tion of a large, productive, taxable economy in which entrepreneurship plays a role for employment, income growth and innovation. The current understanding of various forms of entrepreneurship remains incomplete, focusing largely on productive and unproductive entrepreneurship. However, destructive entrepre-neurship plays an important role in many, if not most, economies. This paper addresses the conceptual gap in the allocation of entrepreneurship by proposing a theory of destructive entrepreneurship.
destructive entrepreneurship allocation of entrepreneurship rent-seeking rent-destroying incentives institutions property rights contractual enforcement conflict, social capital trust ethnic capital