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Entrepreneurship and Local Economic Development

Programme and Policy Recommendations

Entrepreneurship and Local Economic Development by Organisation for Economic Co-operation and Development
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The scope, number and growth of programmes supporting entrepreneurship and microenterprise across OECD member countries is striking. Much of the policy interest in encouraging entrepreneurship reflects a belief that the creation of new firms will help achieve important economic and social objectives. Increasing rates of enterprise creation is an almost universal concern for local authorities and for central governments wishing to combat localised economic distress. However, despite the extent of policy interest, few studies have systematically examined the relationship between the birth of new firms and local economic development.

This publication examines the principal routes through which enterprise creation and development can impact on local economies. Empirical evidence on the relationship between entrepreneurship and local economies is reviewed. It is shown that while entrepreneurship is a critical component of local economic development, the promotion of entrepreneurship does not constitute a developmental panacea. A number of potential limits to entrepreneurship-oriented strategies - and how these limits might be countered - are considered at length.

This book sets out detailed policy recommendations for both national and local levels of government. These recommendations cover three thematic areas: strategy, finance and programme design. It is hoped that these guidelines will assist local and central governments in designing and implementing cost-effective entrepreneurship strategies and programmes. This publication also describes the types of research that should be undertaken in order to improve understanding of the key policy issues.

Organisation for Economic Co-operation and Development; January 2003
241 pages; ISBN 9789264199798
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Title: Entrepreneurship and Local Economic Development
Author: Organisation for Economic Co-operation and Development