Entrepreneurial Activity

Entrepreneurs are a special type of leader, who in Disraeli’s phrase see the angel in the marble—envisioning a better way of doing things that will increase value output, productivity from an assembled set of inputs, achieving which involves risk of failure. In both the private and the public sector, this enhanced value the entrepreneur creates might be a new product, new process, and new business model, and in both cases the entrepreneur steps outside of previous activity organisation, taking the risk that the new way of marshalling resources may not work, it will lack legitimacy. As we show, some sets of institutions are more supportive of entrepreneurs than others by encouraging curiosity and supporting experimentation.