Dynamics of New Firm Formation: Impacts of Economic and Technology Policy

• Main Authors: CHOI, Young Rok, PHAN, Phillip
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2004
• Subjects: Business Law, Public Responsibility, and Ethics; Corporate Finance; Entrepreneurial and Small Business Operations
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/576; https://doi.org/10.1109/IEMC.2004.1407470
• Institution: Singapore Management University

This study investigates how entrepreneurial policies that encompass opportunity, individual, and resource aspects of entrepreneurship explain dynamics of new firm formation in a country. We rely on the Schumpeterian, industrial organization economics, and organizational ecology traditions, and performed an exploratory test with a longitudinal U.S. data (1968-1993). The results of this study suggest that technological knowledge capital, economic opportunity structure, labor mobility, and a nation's carrying capacity for entrepreneurial activities are important areas in which government policy can positively influence the intensity of new firm formation.