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Open Access 2019 | Open Access | Book

Cover of the book

The Entrepreneurial Society

A Reform Strategy for the European Union

Authors: Niklas Elert, Magnus Henrekson, Mark Sanders

Publisher: Springer Berlin Heidelberg

Book Series : International Studies in Entrepreneurship

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

Table of Contents
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About this book

This open access book builds on the European Union’s (EU) Horizon 2020 project ‘Financial and Institutional Reforms for an Entrepreneurial Society’ (FIRES). The authors outline how Europe can move towards more inclusive, innovative and sustainable growth through reforms that will rekindle its entrepreneurial spirit. Based on decades of research and countless discussions with stakeholders, the book also features the FIRES project’s full list of policy interventions and institutional reforms that can help policymakers make that agenda a reality.

Table of Contents

Frontmatter
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Open Access

1. Introduction: Why Entrepreneurship?
Abstract
The European Union suffers from an innovation deficit, which must be remedied if the EU is to improve the quality of life of its citizens and remain competitive in the global marketplace. We explain why productive entrepreneurship is a way towards restoring inclusive, innovative, and sustainable growth in Europe before presenting the theoretical framework of the experimentally organized economy, a perspective stressing the collaborative nature of productive entrepreneurial venturing. The perspective helps us outline an entrepreneurial reform strategy, which acknowledges the substantial cross-country differences across the union. Since each EU member state has evolved its particular bundle of institutions, many of which are complementary to one another, a one-size-fits-all approach to reforming institutions is likely to fail. Finally, we summarize the six reform areas which will be addressed in subsequent chapters, and formulate six guiding principles—neutrality, transparency, moderation, contestability, legality, and justifiability—for developing tailored reform strategies for the European Union, its member states, and regions.
Niklas Elert, Magnus Henrekson, Mark Sanders
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2. Entrepreneurship, the Rule of Law, and Protection of Property Rights
Abstract
Property rights protection and the rule of law are arguably the most fundamental economic institutions of any society. They form the foundation of any entrepreneurial ecosystem and affect the effectiveness of collaborative innovation blocs. To promote an entrepreneurial society, there is therefore no alternative but to ensure that these foundational institutions are of high quality and operate effectively throughout the European Union. The reform proposals in this section aim to provide security while balancing public and private interest in limiting property rights where appropriate. While the European Union has strong legal competencies in this reform area, it has to collaborate with local, regional, and national governments to ensure that these fundamental institutions are also operational.
Niklas Elert, Magnus Henrekson, Mark Sanders
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3. Taxation and Entrepreneurship
Abstract
In providing incentives and rewards, the tax system matters greatly for innovative entrepreneurial venturing. Because a host of different taxes affect entrepreneurship, we discuss reforms in several areas, including labor, capital, corporate, and private wealth taxation. The most important principles an entrepreneurial tax system should enshrine are neutrality and modesty. Together and in isolation the proposals in this chapter aim to ensure that taxes are generally low and do not steer the flow of labor, capital, and knowledge away from innovative, entrepreneurial ventures. As competencies on taxation lie almost exclusively with member states, the role of the European Union in promoting reforms is restricted to coordination and persuasion.
Niklas Elert, Magnus Henrekson, Mark Sanders
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4. Savings, Finance, and Capital for Entrepreneurial Ventures
Abstract
To promote an entrepreneurial society, many of the institutions that mobilize and allocate savings and financial resources in the European Union must be reformed. The proposals in this area seek to address the bias against small, innovative, and young ventures in Europe’s financial markets, dominated by banks and large pension funds. These intermediaries tend to prefer large debt-based investments over the small equity investments that young ventures need, and the problem is exacerbated by perverse tax incentives. In addition, we discuss reforms that can support the emergence of new, platform-based intermediation in financial markets. Competencies for reform are divided among member states and the Union, but often fall outside the traditional scope of entrepreneurship policy.
Niklas Elert, Magnus Henrekson, Mark Sanders
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5. Labor Markets and Social Security in the Entrepreneurial Society
Abstract
Increasing the availability of skilled labor to small and innovative ventures is imperative if entrepreneurship and innovation are to flourish within the European Union. Building up a qualitatively and quantitatively fitting labor force is always a challenge for new, growing ventures, but Europe’s labor market and social security systems tend to create specific barriers to such growth. By aiming for neutrality and portability in social security systems, we propose reforms that will increase the mobility and flexibility of labor, while maintaining a generous level of social security and labor protection. As competencies in labor markets and social security are concentrated at the member state level, the proposals made in this chapter mainly speak to policymakers at that level. Moreover, our proposals extend the scope of what is traditionally considered entrepreneurship policy.
Niklas Elert, Magnus Henrekson, Mark Sanders
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6. Contestable Markets for Entry and Exit
Abstract
Opening up European markets for goods and services would put European entrepreneurs at an equal footing with incumbent firms. For entrepreneurial venturing both market entry and exit are of crucial importance and the European Union has strong legal competencies in these areas, following the treaties to build the European Common Market. However, especially with respect to market exit and business failure, member states retain important competencies and, consequently, the playing field is varied and not level across the Union. Proposals in this chapter seek to remedy this imbalance and create opportunities for European entrepreneurs to scale up their ventures to European and global markets.
Niklas Elert, Magnus Henrekson, Mark Sanders
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7. Mobilizing Human Capital for Entrepreneurship
Abstract
New, innovative business venturing hinges on the creation and mobilization of human capital and knowledge. The proposals in this chapter aim to strengthen and expand the European knowledge space in which Europe’s entrepreneurs build their ventures. Reforms to improve the production and flow of knowledge touch on educational systems, research institutes, and universities. Whereas educational systems remain the almost exclusive legal competency of national or even regional policymakers, reforms addressing intellectual property and the mobility of knowledge and people across the European Union touch on supranational policy domains that extend the scope of entrepreneurship policy beyond its traditional policy areas.
Niklas Elert, Magnus Henrekson, Mark Sanders
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8. Making Entrepreneurship Policy or Entrepreneurial Policymaking
Abstract
To promote innovation and economic growth in the European Union, we have outlined a reform strategy with respect to the institutions and policies that matter the most for fostering a productive entrepreneurial economy. Here, we conclude by summarizing all the previous chapters and discussing how the 50 proposals presented can be used as building blocks but should not be considered a blueprint for institutional reform in the European Union. Rather, implementing reforms for an entrepreneurial society in Europe will have to involve policymaking which is itself entrepreneurial. That is, fast cycles of trial and error will be required to carefully tailor a reform strategy to local conditions and institutional preconditions. But policymakers should not lose sight of the long-term goal of institutional reform to promote entrepreneurship, innovation, and growth across Europe and extend their ambitions to do so beyond the traditional domain of entrepreneurship policy.
Niklas Elert, Magnus Henrekson, Mark Sanders
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Backmatter
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Metadata
Title
The Entrepreneurial Society
Authors
Niklas Elert
Magnus Henrekson
Mark Sanders
Copyright Year
2019
Publisher
Springer Berlin Heidelberg
Electronic ISBN
978-3-662-59586-2
Print ISBN
978-3-662-59585-5
DOI
https://doi.org/10.1007/978-3-662-59586-2