Entrepreneurship, Small and Medium-Sized Enterprises and the Macroeconomy

The US economy has restructured itself, moving away from an industrial economy towards one based on information, while the European Union and Japan have been left to worry about rising government deficits, inflexible businesses, persistent unemployment, and workers inadequately trained for the information age. Why has the US economy moved beyond its chief competitors? This collection suggests that at least some of the answers to the pattern of divergent development can be found in the role of the entrepreneur. By examining the process that new firms and entrepreneurs play in the economy, the essays in this volume make a fundamental contribution to our understanding of the macroeconomy. Each chapter clarifies the role of entrepreneur in economic theory, the function of small and medium size enterprises that they found and build and the impact of the innovations introduced on employment, productivity, and economic growth. The public policy implications of this process are clear. Countries that encourage entrepreneurship and free entry will have better macroeconomics performance than those that retard it.