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Research Outreach

Estimating Entrepreneurship: Do Current Metrics Work?

Popular Science
Henrekson, Magnus and Tino Sanandaji (2020). “Estimating Entrepreneurship: Do Current Metrics Work?”. Research Outreach (119), 138–141.

Magnus Henrekson, Tino Sanandaji

Entrepreneurship makes a vital contribution to economic prosperity. However, this activity is difficult to measure and compare between countries. One reason is that current metrics fail to distinguish between small-scale entrepreneurs without growth potential or ambition, which are common to developing nations – such as taxi drivers or street vendors – and entrepreneurial firms with high growth potential.