Entrepreneurship, Structural Change and a Global Economic Crisis

Thomas Gries and Wim Naude
  • 1 University of Paderborn
  • 2 United Nations University and Maastricht School of Management

Building on a Lewis-type model of structural change and entrepreneurship we illustrate how a global economic crisis consisting of a financial and a trade shock can undermine structural change in developing countries via the start-up and innovation activities of entrepreneurs. The model analytics identifies a number of challenges for structural change in a post-crisis world, including dealing with greater bank concentration, higher costs of bank monitoring and stricter regulations and collateral requirements, flights-to-safety in global finance and reduced incentives for innovation and job-creating start-up activities.

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Positioned as the premier research journal within the field of entrepreneurship, the Entrepreneurship Research Journal (ERJ) is a forum for scholarly discussion on entrepreneurs and their activities, contexts, processes, strategies and outcomes. It seeks to encourage a scholarly exchange between researchers from any field of study who focus on entrepreneurs and includes both theoretical and empirical articles.