Research shows more small business does not mean more entrepreneurs
Tuesday, January 21, 2014 - 11:30
in Mathematics & Economics
(Phys.org) —Economists often measure rates of entrepreneurship by looking at the number of small businesses in an industry or a country. However, in a study published in the Proceedings of the National Academy of Sciences, Magnus Henrekson and Tino Sanandaji of the Research Institute of Industrial Economics in Sweden have found that small business ownership is a poor indicator of entrepreneurship. A better measure is the number of billionaires in the market, which correlates negatively with the number of small businesses and startups.