Purpose – Schumpeter claimed the entrepreneur to be instrumental for creative destruction and industrial dynamics. Entrepreneurial entry serves to transform and revitalize industries, thereby enhancing their competitiveness. The purpose of this paper is to investigate if entry of new firms...

Interest in promoting entrepreneurship has become a worldwide phenomenon. Yet, empirical evidence suggests that countries vary significantly in their ability to incubate and create new firms. Sources of these differences across countries are not well understood. In this paper, we examine the...

Joseph Schumpeter lamented that capitalism would not survive because he thought that its defining process—creative destruction—would be overshadowed by large firms. Witnessing the emergence of rising numbers of increasingly large firms, Schumpeter did not think that those responsible for...

Most industries go through a quot;shakeoutquot; phase during which the number of producers in the industry declines. Industry output generally continues to rise, however, which implies a reallocation of capacity from exiting firms to incumbents and new entrants. Thus shakeouts seem to be classic...

The aim of this paper is to provide an updated survey of the "state of the art" in entrepreneurial studies with a particular focus on developing countries (DCs). In particular, the concept of "entrepreneurship" is critically discussed, followed by a discussion of the institutional,...

The study posits that the causal links between entry and failure rates also flow from failure to entry. As older firms fail, resources are recycled by new entrants permitting local renewal. Failure levels affect both the intensity of the entrepreneurial search for opportunities and the...