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IF they had held entrepreneurial Olympics in the 20th century, then the United States would have walked away with most of the gold medals.
But why have American entrepreneurs been better? Is there something about the American spirit that produces effective risk-takers? Do our institutions stimulate entrepreneurship better, or were we just lucky?
To answer the question, economists Silvia Ardagna and Annamaria Lusardi examined survey data collected from around 150,000 individuals in 37 different countries. Ardagna and Lusardi found that respondents identified themselves as entrepreneurs for two reasons. "Opportunity entrepreneurs" started a business because they planned to create a profitable one. "Remedial entrepreneurs" started a business because they lost their jobs or otherwise had no better option.
The first type of entrepreneur is likely the engine of growth in a dynamic economy. A lousy economy could bring forth many new "entrepreneurs" of the second type, as the jobless try to make ends meet by hawking ...