Business ownership is higher among immigrants,
but promoting self-employment is unlikely to improve outcomes for the less
Immigrants are widely perceived to be highly
entrepreneurial, contributing to economic growth and innovation, and
self-employment is often viewed as a means of enhancing labor market
integration and success among immigrants. Accordingly, many countries have
established special visas and entry requirements to attract immigrant
entrepreneurs. Research supports some of these stances, but expectations may
be too high. There is no strong evidence that self-employment is an
effective tool of upward economic mobility among low-skilled immigrants.
More broadly prioritizing high-skilled immigrants may prove to be more
successful than focusing on entrepreneurship.
Nascent entrepreneurship can have some predictive
power over the business cycle
Entrepreneurship has a cyclical component,
raising two questions. Is the entrepreneurship cycle related to the business
cycle? And is there causality? A two-way relationship between
entrepreneurship and the business cycle would be in line with the two faces
of entrepreneurs: as agents of change creating upswings (opportunity
entrepreneurship) and as rational actors escaping unemployment by setting up
a business (necessity entrepreneurship). Nascent entrepreneurship can indeed
be precyclical, implying that the two faces of entrepreneurship also show up
in the business cycle, with promising policy implications.
Individual and environmental factors can lead
women to start innovative market-expanding and export-oriented ventures—or
Female-led ventures that are market-expanding,
export-oriented, and innovative contribute substantially to local and
national economic development, as well as to the female entrepreneur’s
economic welfare. Female-led ventures also serve as models that can
encourage other high-potential female entrepreneurs. The supply of
high-potential entrepreneurial ventures is driven by individuals’
entrepreneurial attitudes and institutional factors associated with a
country’s conditions for entrepreneurial expansion. A systematic assessment
of those factors can show policymakers the strengths and weaknesses of the
environment for high-potential female entrepreneurship.
Moonlighting responds to economic needs, but can generate new skills and careers
Multiple job-holding, or “moonlighting”, is an important form of atypical employment in most economies. New forms of work, driven by digitalization, may enable its future growth. However, many misconceptions exist, including the belief that multiple job-holders are only low-skilled individuals who moonlight primarily for financial reasons, or that the practice increases during economic downturns. Recent literature highlights the significant links between moonlighting and job mobility. Multiple job-holding allows for the development of workers’ skills and spurs entrepreneurship.
Family and kinship ties offer multiple benefits
to developing country entrepreneurs but can also have adverse effects
Family and kinship networks are important in
helping people get jobs and start companies, as statistics for developing
countries show. Promising new research has begun to assess the positive and
negative effects of these family and kinship ties on entrepreneurial
success. To what extent, and why, are family networks used, and do they
result in better economic outcomes for entrepreneurs? Results point to the
need for policymakers to identify and emulate efficient informal networks in
order to develop innovative support policies for vulnerable entrepreneurs,
especially for those who are attached to weak or inefficient networks.
Harnessing the benefits of diversity is essential for
encouraging entrepreneurship in the transition region
Entrepreneurship is an important lever for spurring transition
in the economies of the former Soviet Union and Central and Eastern Europe. Utilizing
diversity, in terms of religion or gender, can positively affect entrepreneurial development.
Programs that encourage entrepreneurial initiatives (such as business start-ups) in culturally
diverse localities should rank high on the policy agenda. Prompting women to start a business,
along with female-friendly measures (including targeted legislation), can positively affect
entrepreneurial behaviour and the performance of existing enterprises.
Government should create an enabling
environment—for entrepreneurs and investors—rather than try to pick
Entrepreneurship is essential to job creation
and to productivity growth and therefore is an important matter for
government policy. However, policymakers face a difficult challenge because
successful growth for a few firms—which cannot easily be identified in
advance—is accompanied by widespread failure for most other new firms.
Predicting which firms will fail and which will succeed is nearly
impossible. Instead of futilely trying to pick winners, governments can play
a useful role in facilitating the growth of the most promising firms by
setting the conditions for efficient trial-and-error experimentation across