Encouraging Entrepreneurship and Economic Growth

Managerial Finance
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Managerial Finance
This article titled ‘Encouraging Entrepreneurship and Economic Growth’ is authored by Ahlstrom, Chang, and Cheung. Throughout the article, the authors discuss entrepreneurship and its effect on economic growth by analysing the factors that encourage or impede entrepreneurship. Furthermore, through the linkage of antecedents of entrepreneurship with economic development, the authors highlight the considerable impact that entrepreneurship plays in enhancing the growth and development of economies in a diverse world today.
The authors identify geography, capital accumulation and trade as previously researched traditional factors that affect economic growth (Ahlstrom, Chang, & Cheung, 2019). However, their effects on economic growth displayed a small and indirect impact. From the literature review, it is evident that institutions play a significant role in supporting entrepreneurship and facilitating a conducive environment for growth. Institutions identified include those in regulation, judiciary and enforcement that directly influence the relationship between total factor productivity and entrepre...