Unraveling the Shift to the

Entrepreneurial Economy

Erik Stam

In collaboration with Roy Thurik & David Audretsch

Unraveling the Shift to the

Entrepreneurial Economy

Self-employment rates, 1890-1970

Sources: Steinmetz & Wright 1989; Wennekers 2006

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

1890 1910 1930 1950 1970

Netherlands

Germany

US

Self-employment rates, 1970-2009

Source: EIM Compendia

0,06

0,07

0,08

0,09

0,10

0,11

0,12

0,13

0,14

0,15

0,16

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Germany

Netherlands

USA

Unraveling the Shift to the

Entrepreneurial Economy

A few disclaimers …to be discussed afterwards

• Entrepreneurship is a fuzzy concept, with

many empirical indicators, of which self-

employment is the least worst, and

available for the longest period

• Entrepreneurship is related to economic

growth in multiple ways

7

ICT demise of the communist system

globalizationnew competition

for multinationals

outsourcing

and offshoring

knowledge

production

knowledge filter

prosperity

4

6

7

73

88

6

46

5

43

4

entrepreneurship

8

From the (privately/publicly) managed economy

to the entrepreneurial economy

7

ICT demise of the communist system

globalizationnew competition

for multinationals

outsourcing

and offshoring

knowledge

production

knowledge filter

prosperity

4

6

7

73

88

6

46

5

43

4

entrepreneurship

8

From the (privately/publicly) managed economy

to the entrepreneurial economy

7

ICT demise of the communist system

globalizationnew competition

for multinationals

outsourcing

and offshoring

knowledge

production

knowledge filter

prosperity

4

6

7

73

88

6

46

5

43

4

entrepreneurship

8

From the (privately/publicly) managed economy

to the entrepreneurial economy

7

ICT demise of the communist system

globalizationnew competition

for multinationals

outsourcing

and offshoring

knowledge

production

knowledge filter

prosperity

4

6

7

73

88

6

46

5

43

4

entrepreneurship

8

From the (privately/publicly) managed economy

to the entrepreneurial economy

7

ICT demise of the communist system

globalizationnew competition

for multinationals

outsourcing

and offshoring

knowledge

production

knowledge filter

prosperity

4

6

7

73

88

6

46

5

43

4

entrepreneurship

8

From the (privately/publicly) managed economy

to the entrepreneurial economy

7

ICT demise of the communist system

globalizationnew competition

for multinationals

outsourcing

and offshoring

knowledge

production

knowledge filter

prosperity

4

6

7

73

88

6

46

5

43

4

entrepreneurship

8

From the (privately/publicly) managed economy

to the entrepreneurial economy

7

ICT demise of the communist system

globalizationnew competition

for multinationals

outsourcing

and offshoring

knowledge

production

knowledge filter

prosperity

4

6

7

73

88

6

46

5

43

4

entrepreneurship

8

From the (privately/publicly) managed economy

to the entrepreneurial economy

Entrepreneurship policy

• Traditional interpretation of entrepreneurship policy:

policy for SMEs, self-employed and new firms

• New interpretation of entrepreneurship policy: aim is not

to stimulate some form of firms (SMEs, self-employed,

new firms) but to focus on individuals and to support an

economic system that encourages socially productive

entrepreneurial activity - independent of business form

(policy consistent with an entrepreneurial economy).

Unraveling the Shift to the

Entrepreneurial Economy