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The Government and the Entrepreneurs

"Entrepreneurship seems like the quintessential private sector activity.  An individual or a small group of colleagues decide to set up a business and raise some capital.  If things go well, sales grow and they can hire more people.  The business grows based on retained profits – or they may be able to attract funding from venture capital or some other risk-taking investors.  Success brings legitimate big rewards to the people who are willing to risk an equity investment, which could rise in value or become worthless, and to those who work hard to make the business growth possible.

"What does any of this have to do with the government?

"According to an authoritative series of reports on entrepreneurship around the world, the government has a key impact not just on how many new businesses are created, but also – and perhaps more importantly – on the nature of these firms and their ability to grow.

"The reports in question are the Global Entrepreneurship Monitor series, which has been running since 1999. I’ll focus here on the 2012 Global Report(from which the quotes below are taken)."

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Read Simon Johnson's full Economix blog post here

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