From the 1940s to the 1980s large enterprises in Europe was clearly the dominant form of business organisation. Small businesses were believed to be less efficient than their larger counterparts and only marginally involved in innovative activities. This has gradually changed to the extent that, at present, national and supranational policy-makers have given strong priority to entrepreneurship and small and medium-sized enterprises (SMEs). Scholars argue that the outlook of the European economies has undergone a transformation from the managed to the entrepreneurial economy. This sharp change of direction has been primarily driven by a combination of factors including: the growing importance of the knowledge-economy in terms of occupational choices, factors of production and changing patterns of commercial activities; concerns for high unemployment rates, declining international competitiveness in comparison to the USA and Japan and rates of economic growth as well as an evidence of shifting patterns of consumer demand. Evidently, a new vision of the EU’s economic strategy has been conceived in terms of the belief that economic, social and environmental goals must go hand in hand in the 21st century. In the centre of this vision is the innovative entrepreneur who is believed to be a major ingredient for the revitalisation of European economies. The subject of entrepreneurship has been the topic of scholarship and research in a variety of academic fields. The interdisciplinary nature of scholarship reflects the subject as entrepreneurship itself is a multifaceted social and economic phenomenon. However, since there is no explicit horizontal entrepreneurship policy domain at the European level, the topic has not caught sufficient attention from European Union public policy analysts.
The main purpose of the dissertation is to discuss how the EU accommodates the image of ‘entrepreneurial economy’ within its policy-making apparatus. A generalisation of ‘European’ entrepreneurial economy has been made which underlines the supranational level of analysis and gives more attention to what has been undertaken collectively rather than individually by Member States.
Table of Contents
I Defining entrepreneurship
II The role of entrepreneurship for the EU’s economic strategy
1. The Schumpeter Mark I regime (first decades of the 20th century)
2. The Schumpeter Mark II regime or the “Managed Economy” (from the 1940s to the 1970s)
3. The Entrepreneurial Economy (from the late 1970s onwards)
III Entrepreneurship policy
IV Determinants of entrepreneurship
V Fostering entrepreneurship in Europe
Conclusion
Objectives and Topics
The dissertation aims to explore how the European Union integrates the concept of the 'entrepreneurial economy' into its policy-making framework, particularly in the absence of a dedicated horizontal entrepreneurship policy. It examines the shift from managed to entrepreneurial economic models and assesses how various EU policy instruments address the determinants of entrepreneurship.
- Evolution of the European economic strategy from managed to entrepreneurial economies.
- Theoretical analysis of entrepreneurship and its determinants at micro, meso, and macro levels.
- Evaluation of EU policies using the Eclectic Framework of Entrepreneurship.
- The role of Small and Medium-sized Enterprises (SMEs) in fostering economic innovation and growth.
- Mechanisms for policy intervention to address market failures and promote entrepreneurial activity.
Excerpt from the book
I Defining entrepreneurship
‘Many economists have recognized the pivotal role of the entrepreneur in a market economy. Yet despite this central importance in economic activity, the entrepreneur has been a shadowy and elusive figure in the history of economic theory.’
While it has been widely acknowledged that entrepreneurship is a vital force in the structure and functioning of organisations and economies, there is little consensus on the definition of entrepreneurial activity. The first reason for this complexity stems from the fact that entrepreneurship is a multifaceted economic and social phenomenon cutting across a broad range of disciplines such as psychology, management studies, economics and public policy. However, no single subject discipline has a monopoly of wisdom about what entrepreneurship is. Aldrich and Zimmer argue that traditional perspectives on entrepreneurship treat entrepreneurs either as ‘atomized decision-makers, operating as autonomous entities, or as prisoners of their cultural environment, predisposed to entrepreneurship’. The interdisciplinary nature of entrepreneurship research reflects a subject that crosses the boundaries of multiple units of observation and analysis such as individual, groups, enterprises, cultures, geographic locations and industries.
Summary of Chapters
I Defining entrepreneurship: This chapter highlights the lack of consensus regarding the definition of entrepreneurship and explores its interdisciplinary nature as a multifaceted economic and social phenomenon.
II The role of entrepreneurship for the EU’s economic strategy: This chapter tracks the historical shift from the managed economy of the post-WWII era to the modern entrepreneurial economy and its significance for EU growth.
III Entrepreneurship policy: This chapter investigates the rationale for government intervention and the distinction between SME-focused policy and broader entrepreneurship policy.
IV Determinants of entrepreneurship: This chapter outlines the micro, meso, and macro determinants of entrepreneurial activity, using the Eclectic Framework of Entrepreneurship as an analytical tool.
V Fostering entrepreneurship in Europe: This chapter evaluates existing EU initiatives and demonstrates how the Eclectic Framework can be applied to test policy effectiveness in the European context.
Keywords
Entrepreneurship, European Union, SME Policy, Entrepreneurial Economy, Market Failures, Schumpeterian Theory, Knowledge-Based Economy, Innovation, Policy Intervention, Economic Growth, Eclectic Framework, Entrepreneurial Capital, Small and Medium-sized Enterprises, Competitiveness, Public Policy.
Frequently Asked Questions
What is the primary focus of this dissertation?
The work focuses on how the European Union incorporates the vision of an 'entrepreneurial economy' into its current policy apparatus, specifically examining the transition from large-scale managed economies to entrepreneurial ecosystems.
What are the central themes covered in the book?
The main themes include the historical evolution of economic strategies in Europe, the theoretical definitions of entrepreneurship, the rationale for public policy interventions, and the practical challenges of fostering SMEs within the EU.
What is the core research objective?
The core objective is to discuss and analyze how the EU manages its enterprise policies and to evaluate them through the lens of the 'Eclectic Framework of Entrepreneurship'.
Which scientific methodology is applied?
The author utilizes an interdisciplinary approach, drawing on economic history, policy analysis, and the 'Eclectic Framework of Entrepreneurship' developed by Audretsch et al. to test and categorize various policy types.
What does the main body of the work address?
The main body systematically covers the conceptual definition of entrepreneurship, the historical context of the managed vs. entrepreneurial economy, the necessity of policy intervention due to market failures, and the specific application of policy types in Europe.
Which keywords define this research?
Key terms include entrepreneurship, SME policy, European Union, economic strategy, market failure, and the Eclectic Framework.
How does the author define the 'managed economy'?
The managed economy is defined as the political, social, and economic response to an era dominated by large-scale production, where capital and (unskilled) labor were the primary sources of competitive advantage.
What is the 'Think Small First' principle?
It is a core principle enshrined in the Small Business Act (SBA), implying that policy-makers should prioritize SME interests at the earliest stages of policy development.
What role does 'creative destruction' play in Schumpeter's theory?
Creative destruction is described as a process of industrial reorganization where new inventions and entrepreneurs render existing technologies and obsolete businesses redundant, thus driving economic development.
Why are market failures used to justify policy intervention?
Policy intervention is deemed necessary to address specific market failures such as the concentration of market power, information asymmetries, and network or learning externalities that hinder entrepreneurial vitality.
- Arbeit zitieren
- Veronika Minkova (Autor:in), 2010, European Entrepreneurial Culture, München, GRIN Verlag, https://www.hausarbeiten.de/document/179296
