Abstract
Entrepreneurship is popularly regarded as an unmitigated boon that can solve a wide variety of organisational and economic problems while benefiting its practitioners. In contrast, this article provides a different perspective by drawing on a diverse body of theory to explore the costs of entrepreneurship. I propose two broad categories of costs: those that chiefly affect entrepreneurs themselves, and those that impact on society as a whole. Both types of cost can be monetary and non-monetary in nature. After categorising the most salient types of costs associated with entrepreneurship, I discuss various ways they might be mitigated, by entrepreneurs as well as third parties. A particular role is proposed for public policies, which may seek to: moderate entrepreneurial mismanagement based on over-optimism and dysfunctional business decision-making; strengthen intellectual property rights protection for university researchers and private-sector entrepreneurs; and curtail unproductive lobbying by powerful business interests, inter alia. Future researchers are challenged to develop further strategies to minimise the costs of entrepreneurship, while preserving their benefits.
Original language | English |
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Pages (from-to) | 330-350 |
Number of pages | 21 |
Journal | International Journal of Entrepreneurial Venturing |
Volume | 4 |
Issue number | 4 |
DOIs | |
Publication status | Published - Oct 2012 |
Keywords
- management and business
- entrepreneurship
- innovation and SMEs
- policy and organisational management