Is Entrepreneurship Necessarily Good? Microeconomic Evidence from Developed and Developing Countries

The aim of this study is to provide a microeconomic investigation of the concept of entrepreneurship; in particular, the following issues will be discussed: (i) the alternative ways of looking at entrepreneurship, distinguishing “creative destruction” from simple “turbulence”; (ii) the different microeconomic determinants of new firm formation, distinguishing “progressive” from “regressive” drivers; (iii) the relationship between ex-ante characteristics (of the founder) and post-entry performance (of the new firm); and (iv) the possible scope for an economic policy aimed at maximizing the impact of entrepreneurship on economic growth. Where possible and appropriate, throughout the article, particular attention will be devoted to the specific features characterizing entrepreneurship in developing countries.