Evasive Entrepreneurship

Reprint No. 2016:26

Author(s): Niklas Elert and Magnus HenreksonYear: 2016 Title: Small Business Economics Volume (No.): 47 (1) Pages: 95–113
Online article (restrictions may apply)
Preliminary version

We argue that evasive entrepreneurship is an important, although underrated, source of innovation, and provide the first systematic discussion of the concept. We define evasive entrepreneurship as profit-driven business activity in the market aimed at circumventing the existing institutional framework by using innovations to exploit contradictions in that framework. We formulate four propositions of evasive entrepreneurship and illustrate them with a number of real-life examples, ranging from a secret agreement among Chinese farmers in the 1970s to activities of rides-for-hire start-ups in the modern sharing economy. We demonstrate that while evasive entrepreneurship can either be productive, unproductive, or destructive, it may prevent economic development from being stifled by existing institutions during times of rapid economic change. Furthermore, it can spur institutional change with important welfare effects.

Elert, Niklas and Magnus Henrekson (2016), "Evasive Entrepreneurship". Small Business Economics 47(1), 95–113.

Niklas Elert


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Magnus Henrekson


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Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

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In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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