High Growth Firms, Public Policies and Economic Growth

Kashifa Suddle, Jolanda Hessels, Erik Stam, André van Stel

Research output: Chapter in Book/Report/Conference proceedingConference contributionAcademic

Abstract

This paper investigates whether the presence of ambitious entrepreneurs is a more important determinant of national economic growth than entrepreneurial activity in general. We use data from the Global Entrepreneurship Monitor to test the extent to which high growth ambitions are reflected in GDP growth for a sample of 36 countries. The rate of ambitious entrepreneurship is defined as the percentage of adult population that is either actively involved in starting a new venture or is the owner/manager of a business that is less than 42 months old, and, in addition, expects to employ 20 employees or more within five years after the start of the firm. Our results suggest that higher levels of ambitious entrepreneurship contribute more strongly to macro-economic growth than higher levels of entrepreneurial activity in general. We find a particularly strong effect of high-expectation entrepreneurship for transition countries. The results in this paper are interpreted in light of the ongoing debate about public policies designed to stimulate high growth firms.
Original languageEnglish
Title of host publicationProceedings of the 14th Annual High Technology Small Firms Conference and Doctoral Workshop 2006
EditorsGloria Rossini
Place of PublicationEnschede
PublisherUniversity of Twente
Number of pages14
ISBN (Print)9789081078412
Publication statusPublished - 2006
Externally publishedYes
Event14th Annual High Technology Small Firms Conference, HTSF 2006 - University of Twente, Enschede, Netherlands
Duration: 11 May 200613 May 2006
Conference number: 14

Conference

Conference14th Annual High Technology Small Firms Conference, HTSF 2006
Abbreviated titleHTSF
Country/TerritoryNetherlands
CityEnschede
Period11/05/0613/05/06

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