Venture Entrepreneurship, Innovation Entrepreneurship, and Economic Growth
Vol. Volume 9, Number 2 August/2004
Linghui Tang and Peter E. Koveos
This study distinguishes between two types of entrepreneurship activities. Venture Entrepreneurship (VE) entails new venture creation. Innovation entrepreneurship (IE) involves innovations within existing enterprises. VE is found to be positively related to GDP growth rate. IE is negatively related to economic growth rate in high-income countries, while the findings for middle and low-income countries are mixed. The study contributes to a relatively sparse body of literature by exploring the nature of the relationship between entrepreneurship and economic performance.