Globalization and entrepreneurship
This report, by prof. dr. Leo Sleuwaegen and Italo Colantone, reviews the theoretical and analytical findings on the relation between globalization and entrepreneurship, and analyzes the policy implications in a systematic conceptual framework.
In particular, we focus on three dimensions of globalization: trade integration, foreign direct investment and workers migration.
During the last fifteen years the world has witnessed a major globalization process, characterised by increasing integration of products, capital and labour markets across countries. International businesses are often the most productive. Hence: fiercer competition for companies on their home markets. Result: higher exit rates, consolidation and as a result higher entry barriers. Entrepreneurs should thus take into account the need for higher quality startups.
Globalization amplifies the need for sound policy intervention. An effective entrepreneurship policy needs to take the international dimension of business into account. As a conclusion, the researchers provide a list of policy recommendations.