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Entrepreneurship and the business cycle

By Roy Thurik

Abstract

Entrepreneurship has a cyclical component, raising two questions. Is the entrepreneurship cycle related to the business cycle? And is there causality? A two-way relationship between entrepreneurship and the business cycle would be in line with the two faces of entrepreneurs: as agents of change creating upswings (opportunity entrepreneurship) and as rational actors escaping unemployment by setting up a business (necessity entrepreneurship). Nascent entrepreneurship can indeed be precyclical, implying that the two faces of entrepreneurship also show up in the business cycle, with promising policy implications

Topics: E32, L26, ddc:330, entrepreneurship, business cycle, precyclicality, nascent entrepreneurship
Publisher: Bonn: Institute for the Study of Labor (IZA)
Year: 2014
OAI identifier: oai:econstor.eu:10419/125323
Provided by: EconStor

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