Some conclusions about entrepreneurship and its support

In this manuscript I will argue a) that at least in developed economies the rate of new firm formation is crucially important for economic development; b) that it varies considerably over time and space; c) that policy programs aimed at increasing or supporting entrepreneurial activity have a disappointing track record, and d) that institutional reform aiming at the creation and maintenance of a transparent and stable formal institutional framework that is conducive to entrepreneurial activity is the most suitable task for entrepreneurship policy. In support of my argument I will build heavily on experiences from my own research – because it is what I know best – but even more heavily on the 'big names' in this branch of research – because it represents the most compelling evidence. I will only make cursory references to other parts of the now relatively voluminous field we call 'entrepreneurship research'. In order to enhance the credibility of my conclusions I would like to emphasize that for the most part they do not reflect what my own research has tried to prove; neither do they reflect any ideology I had as baggage when first entering the field. Rather, they are a reflection of what the totality of knowledge development in this area over more than twenty years has led me to believe.