Headlines 2014

The Economist Commenting on IFN-Study

2014-02-17


The Economist blogg "Democracy in America" notes that when President Obama announced that Maria Contreras-Sweet would be his nominee to head the Small Business Administration (SBA) he extolled the virtues of small firms. They are “the lifeblood of our economy”, President Obama said. Observing that there are two kinds of small business owners The Economist refers to a study by the IFN-economists Magnus Henrekson and Tino Sanandaji.

The Economist refers to a study by Magnus Henrekson and Tino Sanandaji: "Entrepreneurs come in two categories. The first are self-employed types who run small businesses that replicate other businesses (eg, nail salons, dry cleaners, etc). The second are disruptive innovators who come up with new ideas. The first type of entrepreneur creates some jobs, but the innovative entrepreneur contributes disproportionately to growth—Apple will expand more than an apple stand. And here's where it gets interesting: it turns out that high-growth entrepreneurs are more common in places with lower levels of self-employment". The IFN-study i also discussed in greater detail on The Economist Schumpeter blogg.

The study by Henrekson and Sanandaji

Read The Economist blogg Democracy in America

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