This paper surveys the various forms of market failure that can arise when innovating entrepreneurs consider entering an industry, and outlines possible implications for public policy. Externalities can arise from entrepreneurial activities such as spillover benefits from new innovations and...

This paper surveys the various forms of market failure that can arise when innovating entrepreneurs consider entering an industry, and outlines possible implications for public policy. Externalities can arise from entrepreneurial activities such as spillover benefits from new innovations and...

The government policies that target start-up entrepreneurs have a significant effect on new firm success.In addition to government policy, many other factors act as sources of market failure for entrepreneurs. Initially, external factors related to firm failure are discussed.While these factors...

The paper examines how asymmetric information affects the supply of entrepreneurs and the level of unemployment. The model first analyzes the case where banks, when providing credit, are unable to observe entrepreneurs' risk of failure. We find that credit rationing may increase the number of...