Public policy continues to be an important determinant of economic growth so long as institutions and policy-makers interfere to shape the market economy. During the last few decades all levels of government at the federal, regional and municipal level have become key players in the promotion of the entrepreneurial economy. The re-emergence of entrepreneurship and the shift from a market economy to an entrepreneurial economy accelerated due to an increased globalization and has lead to the development of new entrepreneurship policies implemented at all levels of government and governance.
Change, creativity and innovation became the drivers of the so-called entrepreneurial economy which is, among others, characterized as having a high degree of turbulence. This change from the market to the entrepreneurial economy had a deep impact on the policymaking process: Policy-makers in developed countries face the challenge of having to develop new entrepreneurship policies to ensure economic growth within their regions and nations. Policy-makers in developing countries meanwhile acknowledge the importance of entrepreneurship and micro-financing for sustainable, bottom-up development.
Research coordinator: Dr. Heike Grimm