Entrepreneurship, Competition, and Economic Development

• Published date: 01 December 2016
• Date: 01 December 2016
• DOI: http://doi.org/10.1177/0003603X16676142

Article
The Antitrust Bulletin
2016, Vol. 61(4) 561-563
Entrepreneurship, Competition,
ª The Author(s) 2016
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and Economic Development
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DOI: 10.1177/0003603X16676142
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Sharon F. Matusik*
Abstract
Entrepreneurial activity leads to the development and exploitation of new ways to do business, which
in turn promotes competition either as a firm enters a market where there are other existing firms, or
when it creates a new way (substitute) to meet the needs of its customers. This essay discusses
indirect outcomes associated with these entrepreneurial activities, specifically in the form of knowl-
edge spillovers, economic renewal, consumer surplus, and social value creation. In sum, entrepre-
neurship and the competition it engenders can create direct and indirect benefits to the entrepreneurs
themselves, prospective employees, consumers, competitors, and localities and governments. Further,
this essay notes that while most efforts to encourage entrepreneurial activity focuses on formal policy
levers such as financial investment, public support programs, and tax and regulatory policy, it is also
important to consider informal institutions and how they inhibit or encourage such activity.
Keywords
entrepreneurship, competition, knowledge spillovers, economic development
Donald Kuratko’s article provides a useful overview of the various types of entrepreneurship, their
benefits, and how policy can encourage each of these types. In addition, he provides an outline of
different pathways to entrepreneurship and an overview of where researchers of entrepreneurship have
focused their attention. Dr. Kuratko’s article is a valuable roadmap for those who are building their
knowledge of what entrepreneurship encompasses and how policy levers may be used to encourage
different types of entrepreneurship. He also puts forth a compelling argument that, because of the
uncertainty associated with entrepreneurship, it is prudent to...